Quick charity verification for American Insurance Association (EIN: 133173374)
Verdict: American Insurance Association shows mixed signals
55/100Mission Score
$26.3MRevenue
$0Assets
4Red Flags
2Strengths
Red Flags
Significant deficit in 2018, with expenses ($30,278,333) far exceeding revenue ($19,226,773).
Reporting of $0 assets and $0 liabilities in the latest 2018 filing, a drastic change from previous years' multi-million dollar figures, raising questions about financial transparency and reporting consistency.
Consistent reporting of 0% officer compensation across all filings, which is unusual for an organization of this size and revenue, potentially obscuring executive pay structures.
Lack of NTEE code, hindering proper classification and comparative analysis of the organization's mission and financial efficiency.
Strengths
Consistent revenue generation over several years, generally in the $17M-$20M range prior to the latest filing's higher revenue.
Historically maintained positive net assets in some periods, such as 2017 ($13,530,374 assets vs. $11,454,232 liabilities).
Spending Breakdown
How American Insurance Association 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 Insurance Association
Is American Insurance Association a legitimate charity?
Based on AI analysis of IRS 990 filings, American Insurance Association (EIN: 133173374) shows mixed signals. Mission Score: 55/100. 4 red flags identified, 2 strengths noted.
Is American Insurance Association a good charity to donate to?
American Insurance Association has a Mission Score of 55/100. Revenue: $26.3M. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for American Insurance Association?
The Employer Identification Number (EIN) for American Insurance Association is 133173374. 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 Insurance Association spend its money?
American Insurance Association allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify American Insurance Association's tax-exempt status?
You can verify American Insurance Association's tax-exempt status using EIN 133173374 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 Insurance Association (AIA) exhibits a fluctuating financial performance over the past several years. In 2018, the organization reported expenses significantly exceeding revenue, with $30,278,333 in expenses against $19,226,773 in revenue, indicating a substantial deficit for that period. This contrasts with earlier years like 2017, where revenue of $18,867,112 slightly outpaced expenses of $17,735,795. The organization consistently reports zero assets and liabilities in its most recent filing (2018), which is unusual for an entity with significant revenue and expenses, suggesting a potential change in reporting structure or a pass-through nature of funds.
The lack of reported officer compensation across all filings is a notable aspect of their transparency. While this could indicate that officers are compensated through other means or that the organization's structure does not involve traditional officer salaries, it warrants further investigation for a complete understanding of their operational costs. The absence of detailed asset and liability reporting in the latest filing, compared to previous years where significant figures were present, also raises questions about the completeness and consistency of their financial disclosures.