Quick charity verification for Action For A Better Community Inc (EIN: 160902835)
Verdict: Action For A Better Community Inc appears trustworthy
75/100Mission Score
$22.6MRevenue
$10.0MAssets
3Red Flags
3Strengths
Red Flags
Consistent reporting of 0% officer compensation, which is unusual for an organization of this size and could obscure true administrative costs.
Liabilities frequently exceed assets, indicating potential liquidity challenges or significant reliance on restricted funds/debt.
Significant year-over-year fluctuations in assets and liabilities without clear explanation in the provided data.
Strengths
Consistent operational activity with stable revenue streams over a decade ($22M-$27M annually).
Long history of IRS 990 filings (13 filings), indicating compliance and transparency.
Generally operates near break-even, suggesting efficient use of funds for its mission.
Spending Breakdown
How Action For A Better Community Inc 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 Action For A Better Community Inc
Is Action For A Better Community Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Action For A Better Community Inc (EIN: 160902835) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is Action For A Better Community Inc a good charity to donate to?
Action For A Better Community Inc has a Mission Score of 75/100. Revenue: $22.6M. Assets: $10.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Action For A Better Community Inc?
The Employer Identification Number (EIN) for Action For A Better Community Inc is 160902835. 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 Action For A Better Community Inc spend its money?
Action For A Better Community Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Action For A Better Community Inc's tax-exempt status?
You can verify Action For A Better Community Inc's tax-exempt status using EIN 160902835 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
Action For A Better Community Inc demonstrates consistent operational activity with revenues and expenses in the $22M-$27M range over the past decade. The organization generally operates near break-even, with expenses closely matching revenues, as seen in the 202309 period where expenses of $22,482,665 slightly exceeded revenues of $22,449,383. A notable aspect of their financial health is the fluctuation in assets and liabilities. While assets increased significantly to $12,580,957 in 202309 from $4,789,493 in 202209, liabilities also rose to $13,061,482, indicating a reliance on debt or restricted funds. The consistent reporting of 0% officer compensation across all available filings suggests either a volunteer-led executive team or that executive compensation is reported under other expense categories, which could impact transparency regarding leadership costs.
The spending efficiency appears to be focused on program delivery, given the NTEE code P200 (Human Services - Multipurpose and Other). Without a detailed functional expense breakdown, it's challenging to precisely assess the program, administrative, and fundraising ratios. However, the consistent near break-even operations suggest that most funds are expended annually to achieve their mission. The lack of reported officer compensation directly on the 990s could be a positive indicator of low overhead if indeed compensation is minimal, but it also raises questions about the full picture of administrative costs if compensation is simply categorized elsewhere. The organization's long filing history (13 filings) indicates a commitment to regulatory compliance.
Transparency is generally good through consistent 990 filings. However, the 0% officer compensation reported across all filings is an unusual data point for an organization of this size and could be a point for further inquiry to understand the full scope of administrative costs and leadership remuneration. The significant increase in both assets and liabilities in the latest filing period (202309) warrants closer examination to understand the nature of these changes and their long-term implications for the organization's financial stability.