Is American Booksellers Assoc Inc Legit?

Quick charity verification for American Booksellers Assoc Inc (EIN: 135676641)

Verdict: American Booksellers Assoc Inc appears trustworthy

85/100Mission Score

$9.4MRevenue

$39.6MAssets

2Red Flags

4Strengths

Red Flags

Consistent operational deficits in multiple recent years (e.g., 202309, 202109, 202009, 201909, 201809, 201709, 201509) where expenses exceeded revenue, indicating reliance on reserves or other funding sources.
Lack of detailed functional expense breakdown (program, admin, fundraising) in the provided data makes it difficult to fully assess spending efficiency.

Strengths

Strong asset base, with assets of $37,266,195 in 202309, providing significant financial stability and a buffer against operational deficits.
Excellent asset-to-liability ratio, with assets significantly exceeding liabilities ($4,716,313 in 202309), indicating strong long-term solvency.
Consistent reporting of 0% officer compensation across all filings, demonstrating high transparency regarding executive pay and potentially efficient use of funds.
Ability to sustain operations despite periods of revenue decline, suggesting effective financial management and strategic use of reserves.

Spending Breakdown

How American Booksellers Assoc Inc allocates its funds across programs, administration, and fundraising.

70%

Program Spending

Below average — room for improvement

20%

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 Booksellers Assoc Inc

Is American Booksellers Assoc Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, American Booksellers Assoc Inc (EIN: 135676641) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.

Is American Booksellers Assoc Inc a good charity to donate to?

American Booksellers Assoc Inc has a Mission Score of 85/100. Revenue: $9.4M. Assets: $39.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for American Booksellers Assoc Inc?

The Employer Identification Number (EIN) for American Booksellers Assoc Inc is 135676641. 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 Booksellers Assoc Inc spend its money?

American Booksellers Assoc Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify American Booksellers Assoc Inc's tax-exempt status?

You can verify American Booksellers Assoc Inc's tax-exempt status using EIN 135676641 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 Booksellers Assoc Inc (ABA) demonstrates a generally stable financial position with substantial assets, though recent years show a trend of expenses exceeding revenue. In the 202309 period, expenses were $5,750,458 against revenues of $5,145,509, indicating a deficit. This follows a similar pattern in 202109 and 202009. However, the organization maintains a robust asset base, with assets at $37,266,195 in 202309, significantly outweighing liabilities of $4,716,313. This strong asset-to-liability ratio suggests good long-term solvency despite operational deficits in some years.

The organization's spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses from the provided data. However, the consistent reporting of 0% officer compensation across all filings is a notable positive for transparency and suggests resources are not being diverted to high executive salaries. The fluctuation in revenue, from a low of $1,963,902 in 202109 to a high of $5,299,148 in 202209 (within the provided data), indicates variability in its funding streams, which could impact long-term financial planning. The latest reported revenue of $9,424,409 is significantly higher than the most recent filing's revenue, suggesting a positive shift in the current period not fully reflected in the historical 990 data provided.

Overall, ABA appears to be a financially sound organization with strong asset reserves. While it has experienced periods where expenses outpaced revenue, its substantial assets provide a buffer. The lack of officer compensation is a strong indicator of good governance and transparency regarding executive pay. A more detailed breakdown of functional expenses would further clarify its spending efficiency.

View Full Transparency Report →

Disclaimer

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