Is Arc Of New Jersey Inc Legit?

Quick charity verification for Arc Of New Jersey Inc (EIN: 210697151)

Verdict: Arc Of New Jersey Inc appears trustworthy

75/100Mission Score

$16.1MRevenue

$3.1MAssets

3Red Flags

4Strengths

Red Flags

Consistent reporting of 0% officer compensation for an organization of this size, which is highly unusual and may warrant further inquiry into how leadership is compensated or structured.
Expenses have exceeded revenue in multiple recent periods (e.g., 202312, 202212), indicating a potential trend of operating deficits that could impact long-term financial health if not reversed.
Increase in liabilities from $1,867,983 in 202112 to $2,775,702 in 202312, which should be monitored relative to assets.

Strengths

Consistent filing of IRS Form 990s, indicating good transparency.
No reported officer compensation across all available filings, suggesting a strong commitment to directing funds towards the mission.
Long operational history with consistent revenue generation over $12 million annually, demonstrating established presence and funding.
Maintains millions in assets, providing a buffer against short-term financial fluctuations.

Spending Breakdown

How Arc Of New Jersey 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 Arc Of New Jersey Inc

Is Arc Of New Jersey Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Arc Of New Jersey Inc (EIN: 210697151) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 4 strengths noted.

Is Arc Of New Jersey Inc a good charity to donate to?

Arc Of New Jersey Inc has a Mission Score of 75/100. Revenue: $16.1M. Assets: $3.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Arc Of New Jersey Inc?

The Employer Identification Number (EIN) for Arc Of New Jersey Inc is 210697151. 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 Arc Of New Jersey Inc spend its money?

Arc Of New Jersey Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Arc Of New Jersey Inc's tax-exempt status?

You can verify Arc Of New Jersey Inc's tax-exempt status using EIN 210697151 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 Arc Of New Jersey Inc has demonstrated consistent financial activity over the past decade, with revenues generally keeping pace with expenses. In the most recent filing (202312), the organization reported revenues of $15,300,322 against expenses of $16,393,140, indicating a deficit for the period. This trend of expenses slightly exceeding revenue has been observed in several recent years, such as 202212 ($14,972,165 revenue vs. $15,931,956 expenses) and 201812 ($12,441,570 revenue vs. $12,625,112 expenses). While not immediately alarming given the overall scale of operations, sustained deficits could impact long-term financial stability if not addressed.

The organization's assets have fluctuated, reaching a high of $5,013,873 in 202112 before declining to $3,757,999 in 202312. Liabilities have also varied, with a notable increase to $2,775,702 in 202312 from $1,867,983 in 202112. The consistent reporting of 0% officer compensation across all available filings suggests a strong commitment to directing funds towards its mission rather than executive pay, which is a positive indicator of spending efficiency. However, without a detailed functional expense breakdown (program, admin, fundraising), a precise assessment of spending efficiency is limited.

Transparency appears to be good given the consistent filing of IRS Form 990s. The absence of reported officer compensation is a significant positive for transparency and resource allocation. To further enhance transparency and allow for a more granular analysis of spending efficiency, a detailed breakdown of functional expenses would be beneficial.

View Full Transparency Report →

Disclaimer

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