Quick charity verification for Ara Research Institute Nfp (EIN: 204992608)
Verdict: Ara Research Institute Nfp shows mixed signals
45/100Mission Score
$1Revenue
$2KAssets
3Red Flags
2Strengths
Red Flags
Extremely low and inconsistent revenue in recent years (e.g., $1 in 2023, $5,800 in 2022).
Significant decline in total assets over the past decade (from $276,432 in 2013 to $2,290 in 2023).
Expenses often exceed revenue, indicating consistent operating deficits in many periods (e.g., 2023: $1 revenue vs. $389 expenses; 2021: $87,380 revenue vs. $106,790 expenses).
Strengths
Consistent reporting of 0% officer compensation across all filings, indicating no executive pay burden.
Low liabilities in recent years (e.g., $1 in 2022, $1,713 in 2023) relative to assets.
Spending Breakdown
How Ara Research Institute Nfp allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
5%
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 Ara Research Institute Nfp
Is Ara Research Institute Nfp a legitimate charity?
Based on AI analysis of IRS 990 filings, Ara Research Institute Nfp (EIN: 204992608) shows mixed signals. Mission Score: 45/100. 3 red flags identified, 2 strengths noted.
Is Ara Research Institute Nfp a good charity to donate to?
Ara Research Institute Nfp has a Mission Score of 45/100. Revenue: $1. Assets: $2K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Ara Research Institute Nfp?
The Employer Identification Number (EIN) for Ara Research Institute Nfp is 204992608. 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 Ara Research Institute Nfp spend its money?
Ara Research Institute Nfp allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Ara Research Institute Nfp's tax-exempt status?
You can verify Ara Research Institute Nfp's tax-exempt status using EIN 204992608 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
Ara Research Institute Nfp exhibits highly inconsistent financial activity over its filing history, with revenues fluctuating wildly from $1 to $114,000. The most recent filing (202312) shows negligible revenue ($1) against expenses ($389), indicating minimal operational activity or significant financial challenges. While the organization reports zero officer compensation across all available filings, which is a positive for donor confidence regarding executive pay, the overall financial picture is one of instability and very low operational scale in recent years. The organization's assets have also seen significant decline from a high of $276,432 in 2013 to just $2,290 in 2023, suggesting a substantial reduction in its financial base. The lack of detailed expense breakdowns in the provided data makes it difficult to assess spending efficiency beyond the top-line figures.
The organization's financial health appears precarious given its recent revenue of $1 and expenses of $389. This suggests it is either largely inactive or struggling to secure funding. The NTEE code H12 (Research Institutes and Public Policy Analysis) implies a mission that typically requires substantial funding, which is not reflected in its current financial state. The consistent reporting of zero officer compensation is a strong point for transparency in that specific area, but the overall financial data points to an organization that is not operating at a significant capacity or is undergoing a major restructuring. Without more detailed expense categories, a full assessment of spending efficiency is challenging, but the low revenue and expenses suggest minimal program delivery.