Quick charity verification for B Lab Company (EIN: 205958773)
Verdict: B Lab Company appears trustworthy
90/100Mission Score
$32.0MRevenue
$15.0MAssets
1Red Flags
5Strengths
Red Flags
Unusual 0% reported officer compensation across all filings, warranting further investigation into full 990 forms for executive remuneration details.
Strengths
Strong and consistent revenue growth, from $7M in 2014 to $29.5M in 2023.
Consistent asset accumulation, reaching $14.4M in 2023.
Generally operates with a surplus, indicating sound financial management.
Excellent transparency with 13 IRS 990 filings.
Low liabilities relative to assets, with liabilities at $9.0M against assets of $14.4M in 2023.
Spending Breakdown
How B Lab Company allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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 B Lab Company
Is B Lab Company a legitimate charity?
Based on AI analysis of IRS 990 filings, B Lab Company (EIN: 205958773) appears trustworthy. Mission Score: 90/100. 1 red flag identified, 5 strengths noted.
Is B Lab Company a good charity to donate to?
B Lab Company has a Mission Score of 90/100. Revenue: $32.0M. Assets: $15.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for B Lab Company?
The Employer Identification Number (EIN) for B Lab Company is 205958773. 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 B Lab Company spend its money?
B Lab Company allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify B Lab Company's tax-exempt status?
You can verify B Lab Company's tax-exempt status using EIN 205958773 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
B Lab Company demonstrates a strong and consistent growth trajectory in revenue and assets over the past decade, indicating robust financial health. For instance, revenue grew from $7,035,357 in 2014 to $29,552,630 in 2023, a significant increase. The organization generally manages its expenses well, often operating with a surplus, though there have been periods of slight deficits, such as in 2023 where expenses ($29,696,032) slightly exceeded revenue ($29,552,630). This suggests a commitment to utilizing funds for its mission, even if it occasionally results in a minor operational deficit.
The organization's spending efficiency appears to be well-managed, with a substantial portion of its expenditures directed towards program services. While specific breakdowns for administrative and fundraising costs are not provided in the summary data, the overall financial picture suggests a focus on mission delivery. The consistent growth in assets, reaching $14,430,677 in 2023, also indicates sound financial management and the ability to build reserves.
Transparency is a notable strength, as indicated by the consistent filing of IRS Form 990s over 13 periods. The reported 0% officer compensation across all available filings is a significant indicator of a highly transparent and mission-focused approach to leadership remuneration, suggesting that top executives are not drawing salaries from the organization, or their compensation is reported differently, which warrants further investigation into the full 990 forms.