Is American Mothers Inc Legit?

Spending Breakdown

How American Mothers 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 Mothers Inc

Is American Mothers Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, American Mothers Inc (EIN: 136159070) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.

Is American Mothers Inc a good charity to donate to?

American Mothers Inc has a Mission Score of 45/100. Revenue: $105K. Assets: $452K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for American Mothers Inc?

The Employer Identification Number (EIN) for American Mothers Inc is 136159070. 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 Mothers Inc spend its money?

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

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

You can verify American Mothers Inc's tax-exempt status using EIN 136159070 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

American Mothers Inc. exhibits a concerning trend of declining financial health over the past decade. While the organization reported $105,203 in revenue and $451,598 in assets in its latest filing (201906), its expenses have frequently outpaced its revenue, leading to a significant depletion of assets. For instance, in 201906, expenses were $172,375 against $105,203 in revenue, and in 201806, expenses were $229,105 against $120,128 in revenue. This consistent deficit spending has seen assets drop from $1,138,905 in 201106 to $451,598 in 201906, representing a decrease of over 60%.

The organization's spending efficiency is difficult to fully assess without a detailed functional expense breakdown, which is not provided in the summary data. However, the consistent operational deficits suggest that current spending levels are unsustainable relative to its revenue generation. The lack of reported officer compensation across all filings indicates a potential reliance on volunteer leadership, which can be a positive for efficiency, but the overall financial trajectory remains a significant concern. Transparency regarding program versus administrative and fundraising costs would greatly benefit stakeholders.

Given the substantial decline in assets and persistent operational deficits, American Mothers Inc. faces significant financial challenges. While the absence of officer compensation is notable, the long-term sustainability of the organization is questionable without a substantial increase in revenue or a significant reduction in expenses. The organization's ability to continue its mission effectively is at risk if these financial trends persist.

Verdict: American Mothers Inc shows mixed signals

Red Flags

Strengths