Is Afa Action Inc Legit?

Strengths

Consistent reporting of 0% officer compensation, indicating transparency in executive pay or a volunteer-led structure.
Recent financial recovery with revenue increasing from $45,566 in 2021 to $1,839,691 in 2023.
Expenses generally track revenue in recent years, suggesting efficient use of incoming funds (e.g., $1,793,272 expenses vs. $1,839,691 revenue in 2023).

Spending Breakdown

How Afa Action 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 Afa Action Inc

Is Afa Action Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Afa Action Inc (EIN: 204511516) appears trustworthy. Mission Score: 70/100. 2 red flags identified, 3 strengths noted.

Is Afa Action Inc a good charity to donate to?

Afa Action Inc has a Mission Score of 70/100. Revenue: $2.5M. Assets: $413K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Afa Action Inc?

The Employer Identification Number (EIN) for Afa Action Inc is 204511516. 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 Afa Action Inc spend its money?

Afa Action Inc allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Afa Action Inc's tax-exempt status?

You can verify Afa Action Inc's tax-exempt status using EIN 204511516 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

Afa Action Inc has demonstrated inconsistent financial performance over the past decade, with significant fluctuations in revenue and expenses. For instance, revenue peaked at $4,562,912 in 2015 but dropped to $45,566 in 2021 before recovering to $1,839,691 in 2023. Despite these variations, the organization consistently reports 0% officer compensation across all available filings, which is a strong indicator of transparency regarding executive pay and suggests that leadership may be volunteer-based or compensated through other means not categorized as officer compensation. The organization's assets have also fluctuated, from a high of $814,957 in 2014 to a low of $13,848 in 2020, currently standing at $464,699 in 2023. This volatility makes it challenging to assess long-term financial stability without further context on the nature of their operations and funding model.

Spending efficiency appears to be reasonable in recent years, with expenses generally tracking revenue. For example, in 2023, expenses were $1,793,272 against revenues of $1,839,691, indicating that most of the income is being utilized for operations. However, without a detailed breakdown of program, administrative, and fundraising expenses, a precise assessment of spending efficiency is difficult. The consistent reporting of zero officer compensation is a positive sign for transparency in that specific area, but a complete picture would require more granular expense data to determine how much of the budget directly supports their mission.

Verdict: Afa Action Inc appears trustworthy

Red Flags