Quick charity verification for Advertising Council Inc (EIN: 130417693)
Verdict: Advertising Council Inc appears trustworthy
75/100Mission Score
$80.7MRevenue
$106.1MAssets
2Red Flags
3Strengths
Red Flags
Consistent 0% officer compensation reported, which is unusual for an organization of this size and warrants further clarification.
Significant year-over-year fluctuations in revenue and expenses, indicating potential instability or project-based funding cycles.
Strengths
Long-term growth in assets, from $38.4M in 2014 to $92.6M in 2023, indicating financial stability and reserve building.
Generally positive net income in most years, with the exception of 2022, demonstrating effective financial management.
Strong revenue generation, with the latest reported revenue at $80,711,302.
Spending Breakdown
How Advertising Council Inc allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
10%
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 Advertising Council Inc
Is Advertising Council Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Advertising Council Inc (EIN: 130417693) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is Advertising Council Inc a good charity to donate to?
Advertising Council Inc has a Mission Score of 75/100. Revenue: $80.7M. Assets: $106.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Advertising Council Inc?
The Employer Identification Number (EIN) for Advertising Council Inc is 130417693. 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 Advertising Council Inc spend its money?
Advertising Council Inc allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Advertising Council Inc's tax-exempt status?
You can verify Advertising Council Inc's tax-exempt status using EIN 130417693 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
The Advertising Council Inc. demonstrates generally sound financial health, though with some volatility in revenue and expenses. In fiscal year 2023, the organization reported revenue of $71,825,199 against expenses of $65,598,836, resulting in a surplus. However, the prior year (2022) saw expenses of $83,683,011 significantly outpace revenue of $66,445,245, indicating a deficit. This fluctuation is also evident in 2021, which had exceptionally high revenue of $117,135,538.
The organization's assets have shown growth over the long term, reaching $92,630,672 in 2023, up from $38,400,894 in 2014, suggesting a build-up of financial reserves. A notable aspect of their transparency is the consistent reporting of 0% for officer compensation across all available filings, which is unusual for an organization of this size and could indicate that executive compensation is reported under other categories or that the top officers are not compensated, which warrants further investigation for full transparency. The absence of specific program, administrative, and fundraising expense breakdowns in the provided data limits a detailed assessment of spending efficiency.