Is African Center For Economic…

Quick charity verification for African Center For Economic Transformation (EIN: 113803281)

Spending Breakdown

How African Center For Economic Transformation allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 African Center For Economic Transformation

Is African Center For Economic Transformation a legitimate charity?

Based on AI analysis of IRS 990 filings, African Center For Economic Transformation (EIN: 113803281) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.

Is African Center For Economic Transformation a good charity to donate to?

African Center For Economic Transformation has a Mission Score of 75/100. Revenue: $7.2M. Assets: $4.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for African Center For Economic Transformation?

The Employer Identification Number (EIN) for African Center For Economic Transformation is 113803281. 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 African Center For Economic Transformation spend its money?

African Center For Economic Transformation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify African Center For Economic Transformation's tax-exempt status?

You can verify African Center For Economic Transformation's tax-exempt status using EIN 113803281 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 African Center For Economic Transformation demonstrates a generally stable financial trajectory, with recent filings showing consistent revenue growth from $3.4 million in 2019 to $6.3 million in 2023. The organization has maintained a healthy operating margin in recent years, with revenues exceeding expenses in 2023 ($6,335,866 revenue vs. $6,075,492 expenses) and 2022 ($5,485,959 revenue vs. $5,464,301 expenses), indicating sound financial management. However, the significant increase in liabilities to $4,464,671 in 2023, alongside a substantial asset base of $5,004,928, warrants closer examination to understand the nature of these liabilities and their potential impact on long-term financial stability. 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 section for other reasons, which would require further investigation.

The organization's NTEE code Q30 (International Development, Relief Services) suggests a focus on program delivery, which aligns with the expectation of efficient spending. Without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to precisely assess spending efficiency. However, the consistent positive operating margins in recent years suggest that the organization is effectively managing its overall expenditures relative to its income. The substantial growth in assets from $548,105 in 2019 to over $5 million in 2023, while also seeing a significant rise in liabilities, indicates a dynamic financial structure that merits further scrutiny to ensure sustainable growth and responsible asset management. The lack of reported officer compensation is a notable aspect of its transparency.

Is African Center For Economic Transformation Legit?

Verdict: African Center For Economic Transformation appears trustworthy

Red Flags

Strengths