Is American Democracy Institute Inc Legit?…

Quick charity verification for American Democracy Institute Inc (EIN: 202305292)

Strengths

Consistent revenue growth, reaching $1,012,430 in 202312.
Strong asset accumulation, with assets growing to $691,316 in 202312.
Zero reported officer compensation across all filings, indicating high transparency and dedication of funds to mission.
Generally positive net income (revenue exceeding expenses) in recent years, such as a $237,174 surplus in 202312.
Low liabilities relative to assets, suggesting good financial health and solvency.

Spending Breakdown

How American Democracy Institute Inc allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

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 American Democracy Institute Inc

Is American Democracy Institute Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, American Democracy Institute Inc (EIN: 202305292) appears trustworthy. Mission Score: 90/100. 0 red flags identified, 5 strengths noted.

Is American Democracy Institute Inc a good charity to donate to?

American Democracy Institute Inc has a Mission Score of 90/100. Revenue: $721K. Assets: $613K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for American Democracy Institute Inc?

The Employer Identification Number (EIN) for American Democracy Institute Inc is 202305292. 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 Democracy Institute Inc spend its money?

American Democracy Institute Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify American Democracy Institute Inc's tax-exempt status?

You can verify American Democracy Institute Inc's tax-exempt status using EIN 202305292 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 Democracy Institute Inc. demonstrates a generally healthy financial trajectory, with consistent revenue growth over the past several years, culminating in $1,012,430 in revenue for the 202312 period. The organization has maintained a positive net asset position, growing from $9,124 in 201712 to $691,316 in 202312, indicating sound financial management and accumulation of reserves. Their liabilities have remained relatively low compared to assets, suggesting good solvency.

Spending efficiency appears strong, as evidenced by the consistent surplus of revenue over expenses in most recent years, such as the $237,174 surplus in 202312 ($1,012,430 revenue vs. $775,256 expenses). The organization has consistently reported 0% officer compensation across all available filings, which is a significant indicator of transparency and a commitment to directing funds towards its mission rather than executive salaries. This practice also suggests a volunteer-driven or very lean operational model at the leadership level.

While specific program, administrative, and fundraising expense breakdowns are not provided in the summary data, the absence of officer compensation is a strong positive for transparency. The consistent growth in assets and revenue, alongside controlled expenses, points to a well-managed and financially stable organization. Further analysis would require detailed expense breakdowns from the full 990 forms to fully assess spending efficiency across categories.

Is American Democracy Institute Inc Legit?

Verdict: American Democracy Institute Inc appears trustworthy