Quick charity verification for Al Rahmah Educational Trust (EIN: 207125335)
Verdict: Al Rahmah Educational Trust appears trustworthy
90/100Mission Score
$214KRevenue
$251KAssets
1Red Flags
4Strengths
Red Flags
Increasing liabilities from $57,560 in 2022 to $78,087 in 2023, though still well-covered by assets.
Strengths
Consistent revenue growth from $126,121 to $155,885.
Significant asset growth from $166,037 to $275,345.
No reported officer compensation, indicating efficient use of funds.
Expenses are consistently well below revenue, demonstrating strong financial management.
Spending Breakdown
How Al Rahmah Educational Trust 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 Al Rahmah Educational Trust
Is Al Rahmah Educational Trust a legitimate charity?
Based on AI analysis of IRS 990 filings, Al Rahmah Educational Trust (EIN: 207125335) appears trustworthy. Mission Score: 90/100. 1 red flag identified, 4 strengths noted.
Is Al Rahmah Educational Trust a good charity to donate to?
Al Rahmah Educational Trust has a Mission Score of 90/100. Revenue: $214K. Assets: $251K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Al Rahmah Educational Trust?
The Employer Identification Number (EIN) for Al Rahmah Educational Trust is 207125335. 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 Al Rahmah Educational Trust spend its money?
Al Rahmah Educational Trust allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Al Rahmah Educational Trust's tax-exempt status?
You can verify Al Rahmah Educational Trust's tax-exempt status using EIN 207125335 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
Al Rahmah Educational Trust demonstrates a healthy financial position with consistent revenue growth and increasing assets. In 2023, the organization reported revenue of $155,885 against expenses of $67,104, indicating a significant surplus that contributed to asset growth from $166,037 in 2022 to $275,345 in 2023. This trend suggests effective financial management and an ability to build reserves. The organization's liabilities have also increased, from $57,560 in 2022 to $78,087 in 2023, which should be monitored, but overall assets significantly outweigh liabilities.
The organization's spending efficiency appears strong, with expenses consistently well below revenue. The absence of reported officer compensation in both available filings is a positive indicator of resource allocation directly towards the mission rather than executive salaries. While specific program, administrative, and fundraising expense breakdowns are not provided in the summary data, the overall low expense ratio relative to revenue suggests a lean operational model. Transparency is good given the available filings, but more detailed expense breakdowns would further enhance understanding of spending efficiency.