Quick charity verification for 516 Arts (EIN: 208540744)
Verdict: 516 Arts appears trustworthy
88/100Mission Score
$397KRevenue
$1.4MAssets
2Red Flags
4Strengths
Red Flags
Significant operating deficit in 2023 ($180,696, as expenses of $715,709 exceeded revenue of $535,013).
Volatile revenue streams, making financial planning potentially challenging.
Strengths
Zero officer compensation reported across all filings, indicating efficient use of funds.
Substantial asset growth over the past decade, from $19,939 in 2014 to $1,687,464 in 2023.
Consistent IRS 990 filing history (13 filings), demonstrating strong transparency.
Strong financial performance in 2020-2022 with revenue consistently exceeding expenses.
Spending Breakdown
How 516 Arts allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
5%
Fundraising
Within typical range
How to read this: Well-run charities typically spend 75% or more on programs, keep admin under 25%, and fundraising under 15%. A high program ratio means more of every dollar goes directly to the mission.
How to Interpret This Report
What Red Flags Mean
Red flags are potential warning signs identified by AI analysis of IRS 990 filings. They may indicate issues like declining revenue, high executive pay relative to program spending, lack of transparency, or governance concerns. A single red flag does not necessarily mean an organization is untrustworthy, but multiple flags warrant further investigation before donating.
What Mission Score Measures
The Mission Score (0-100) evaluates how effectively a nonprofit fulfills its stated purpose. It combines multiple factors: program spending efficiency (how much goes to programs vs. overhead), financial health and sustainability, governance quality, transparency in reporting, and consistency of operations over time. A score of 70+ indicates strong alignment with the organization’s mission.
Using This Data for Donation Decisions
Use this report as one input in your decision. Look at the overall Mission Score for a quick assessment, review red flags and strengths for specific concerns, check the spending breakdown to see where money goes, and compare executive compensation to the organization’s size. Consider viewing the full transparency report for deeper analysis, and always verify tax-exempt status with the IRS before making large donations.
Frequently Asked Questions about 516 Arts
Is 516 Arts a legitimate charity?
Based on AI analysis of IRS 990 filings, 516 Arts (EIN: 208540744) appears trustworthy. Mission Score: 88/100. 2 red flags identified, 4 strengths noted.
Is 516 Arts a good charity to donate to?
516 Arts has a Mission Score of 88/100. Revenue: $397K. Assets: $1.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for 516 Arts?
The Employer Identification Number (EIN) for 516 Arts is 208540744. This is the unique tax ID assigned by the IRS.
What is a Mission Score?
The Mission Score is a 0-100 rating that measures how effectively a nonprofit fulfills its stated mission. It factors in program spending efficiency, financial transparency, governance practices, and outcome reporting. Scores above 70 indicate strong mission alignment, 40-69 suggest mixed performance, and below 40 signals potential concerns.
How does 516 Arts spend its money?
516 Arts allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify 516 Arts's tax-exempt status?
You can verify 516 Arts's tax-exempt status using EIN 208540744 on the IRS Tax Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. You can also request copies of their Form 990 directly from the organization, as they are required by law to provide them upon request.
AI Transparency Report
516 Arts demonstrates a generally healthy financial profile, though recent trends show some volatility. In 2023, the organization reported expenses exceeding revenue by a significant margin ($715,709 in expenses vs. $535,013 in revenue), leading to a decrease in net assets. This contrasts with the prior three years (2020-2022) where revenue consistently outpaced expenses, allowing for asset growth. The organization's assets have grown substantially over the past decade, from $19,939 in 2014 to $1,687,464 in 2023, indicating successful fundraising and asset accumulation over the long term.
Spending efficiency appears to be a strength, as the organization consistently reports 0% officer compensation across all available filings, suggesting resources are directed towards programs and operational needs rather than high executive salaries. While a detailed breakdown of program vs. administrative vs. fundraising expenses isn't provided in the summary data, the absence of officer compensation is a positive indicator of efficient resource allocation. The organization's consistent filing history (13 filings) also points to good transparency practices, making financial data readily available for public scrutiny.
However, the recent deficit in 2023 warrants attention to ensure it's an anomaly rather than a trend. While assets remain strong, sustained periods of expenses exceeding revenue could impact long-term financial stability. Overall, 516 Arts appears to be a well-managed organization with a strong commitment to its mission, supported by a history of asset growth and transparent reporting, but with a need to monitor recent expenditure increases.