Quick charity verification for Arello Foundation (EIN: 205076923)
Verdict: Arello Foundation appears trustworthy
70/100Mission Score
$46KRevenue
$187KAssets
2Red Flags
4Strengths
Red Flags
Lack of detailed functional expense breakdown in provided data, making spending efficiency difficult to assess.
Expenses exceeded revenue in the most recent filing period (2023: Revenue=$6,615, Expenses=$10,739), indicating reliance on reserves or other funding sources.
Steady growth in assets over the past decade, demonstrating financial stability (from $144,794 in 2014 to $191,116 in 2023).
Long history of IRS 990 filings (14 filings), suggesting commitment to regulatory compliance and transparency.
Low liabilities, often reported as $0 or minimal, indicating a healthy balance sheet.
Spending Breakdown
How Arello Foundation 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 Arello Foundation
Is Arello Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Arello Foundation (EIN: 205076923) appears trustworthy. Mission Score: 70/100. 2 red flags identified, 4 strengths noted.
Is Arello Foundation a good charity to donate to?
Arello Foundation has a Mission Score of 70/100. Revenue: $46K. Assets: $187K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Arello Foundation?
The Employer Identification Number (EIN) for Arello Foundation is 205076923. 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 Arello Foundation spend its money?
Arello Foundation allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Arello Foundation's tax-exempt status?
You can verify Arello Foundation's tax-exempt status using EIN 205076923 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 Arello Foundation demonstrates consistent financial stability with a healthy asset base relative to its annual revenue. While its revenue fluctuates, ranging from $2,804 in 2014 to $24,860 in 2021, its assets have steadily grown, reaching $191,116 in 2023. The organization consistently reports 0% officer compensation, indicating a volunteer-driven leadership, which is a strong positive for donor confidence and efficiency. However, the provided data lacks a detailed breakdown of expenses into program, administrative, and fundraising categories, making a precise assessment of spending efficiency challenging. For instance, in 2023, expenses ($10,739) exceeded revenue ($6,615), suggesting reliance on prior year surpluses or asset drawdowns, which warrants further investigation into the nature of these expenses.
Without a detailed functional expense statement, it's difficult to fully evaluate how effectively donor funds are being utilized for program services versus overhead. The consistent reporting of zero officer compensation is a significant strength in terms of transparency and minimizing administrative costs at the executive level. However, to fully assess transparency, more granular expense data would be beneficial. The foundation's long filing history (14 filings) indicates a commitment to regulatory compliance.
Overall, the Arello Foundation appears to be a financially stable organization with a strong volunteer leadership, as evidenced by zero officer compensation. Its consistent asset growth and long filing history are positive indicators. However, a lack of detailed expense categorization prevents a definitive assessment of its spending efficiency and program impact. Donors seeking to understand the direct impact of their contributions would benefit from more detailed financial reporting on program expenditures.