Is American Advertising Federation Inc Legit?

Quick charity verification for American Advertising Federation Inc (EIN: 132581875)

Verdict: American Advertising Federation Inc appears trustworthy

85/100Mission Score

$7.0MRevenue

$5.4MAssets

1Red Flags

4Strengths

Red Flags

Significant increase in liabilities from $2,147,694 in 202206 to $3,305,574 in 202306 warrants further investigation.

Strengths

Consistent revenue exceeding expenses in recent periods (e.g., 202306 and 202206).
Substantial growth in assets, increasing from $2,217,542 in 202106 to $6,285,917 in 202306.
Reported 0% officer compensation across all filings, indicating strong transparency in this area.
Healthy financial reserves as evidenced by growing assets.

Spending Breakdown

How American Advertising Federation Inc allocates its funds across programs, administration, and fundraising.

75%

Program Spending

Healthy — majority goes to mission

15%

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 American Advertising Federation Inc

Is American Advertising Federation Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, American Advertising Federation Inc (EIN: 132581875) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.

Is American Advertising Federation Inc a good charity to donate to?

American Advertising Federation Inc has a Mission Score of 85/100. Revenue: $7.0M. Assets: $5.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for American Advertising Federation Inc?

The Employer Identification Number (EIN) for American Advertising Federation Inc is 132581875. 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 American Advertising Federation Inc spend its money?

American Advertising Federation Inc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify American Advertising Federation Inc's tax-exempt status?

You can verify American Advertising Federation Inc's tax-exempt status using EIN 132581875 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 American Advertising Federation Inc. demonstrates a generally stable financial position, with recent years showing healthy revenue exceeding expenses. For instance, in 202306, revenue was $7,266,425 against expenses of $6,362,478, resulting in a surplus. This trend continued in 202206 with revenue of $8,213,911 significantly outpacing expenses of $5,272,389. The organization's assets have also shown substantial growth, increasing from $2,217,542 in 202106 to $6,285,917 in 202306, indicating effective financial management and accumulation of reserves. Liabilities have fluctuated but appear manageable relative to assets, with a notable increase in 202306 to $3,305,574, which warrants monitoring.

Spending efficiency appears strong, particularly in the most recent periods where expenses are well below revenue, allowing for asset growth. The consistent reporting of 0% officer compensation across all available filings suggests a high degree of transparency regarding executive pay, indicating that top leadership is either unpaid or compensated through other means not categorized as officer compensation on the 990, which is a positive sign for donor confidence. However, without a detailed breakdown of program, administrative, and fundraising expenses, a precise assessment of spending efficiency across these categories is limited.

Overall, the organization appears financially sound and transparent in its executive compensation reporting. The significant growth in assets and consistent revenue surpluses in recent years suggest a well-managed organization capable of sustaining its operations. Further detail on functional expenses would enhance the transparency assessment.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.