Quick charity verification for Advocates Inc (EIN: 161453716)
Verdict: Advocates Inc appears trustworthy
85/100Mission Score
$39.3MRevenue
$14.9MAssets
1Red Flags
4Strengths
Red Flags
Consistent 0% officer compensation reported, which is highly unusual for an organization of this scale and warrants further investigation into how executive compensation is managed or reported.
Strengths
Consistent and significant revenue growth over the past decade, from $7.1M in 2014 to $36.1M in 2023.
Efficient spending, with expenses closely matching revenue each year, indicating funds are actively used for operations rather than stockpiling.
Strong and growing asset base, increasing from $5.7M in 2014 to $15.4M in 2023, providing financial resilience.
Low liabilities relative to assets, indicating a healthy balance sheet.
Spending Breakdown
How Advocates Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
8%
Admin Costs
Reasonable — admin costs in check
2%
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 Advocates Inc
Is Advocates Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Advocates Inc (EIN: 161453716) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Advocates Inc a good charity to donate to?
Advocates Inc has a Mission Score of 85/100. Revenue: $39.3M. Assets: $14.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Advocates Inc?
The Employer Identification Number (EIN) for Advocates Inc is 161453716. 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 Advocates Inc spend its money?
Advocates Inc allocates 90% to programs, 8% to administration, and 2% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Advocates Inc's tax-exempt status?
You can verify Advocates Inc's tax-exempt status using EIN 161453716 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
Advocates Inc demonstrates strong financial health and consistent growth over the past decade. The organization's revenue has grown from $7.1 million in 2014 to $36.1 million in 2023, indicating expanding operations and donor support. Their asset base has also steadily increased, reaching $15.4 million in 2023, which provides a solid foundation for future activities. The consistent reporting of 0% officer compensation across all available filings suggests a high degree of transparency regarding executive pay, or that executive compensation is not reported in this specific field, which would warrant further investigation. The organization consistently spends nearly all of its revenue on expenses, with a relatively small surplus each year, indicating efficient use of funds rather than excessive accumulation. For instance, in 2023, expenses were $36,067,641 against revenues of $36,157,949, a difference of less than 0.25%.