Quick charity verification for Bbb Foundsation (EIN: 202042606)
Verdict: Bbb Foundsation appears trustworthy
70/100Mission Score
$1.5MRevenue
$2.7MAssets
4Red Flags
3Strengths
Red Flags
Highly inconsistent revenue streams over the past decade
Significant year-over-year fluctuations in total expenses
Unusually low or zero reported liabilities consistently, which might mask operational complexities if not fully understood
0% officer compensation reported, which is atypical and may warrant further inquiry into how leadership is compensated or structured.
Strengths
Consistent filing of IRS Form 990s, indicating compliance with reporting requirements
Consistently low reported liabilities ($0 or $1), suggesting strong financial solvency and minimal debt burden
No reported officer compensation, which could indicate a highly volunteer-driven leadership structure and efficient use of funds for mission-related activities.
Spending Breakdown
How Bbb Foundsation allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
10%
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 Bbb Foundsation
Is Bbb Foundsation a legitimate charity?
Based on AI analysis of IRS 990 filings, Bbb Foundsation (EIN: 202042606) appears trustworthy. Mission Score: 70/100. 4 red flags identified, 3 strengths noted.
Is Bbb Foundsation a good charity to donate to?
Bbb Foundsation has a Mission Score of 70/100. Revenue: $1.5M. Assets: $2.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Bbb Foundsation?
The Employer Identification Number (EIN) for Bbb Foundsation is 202042606. 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 Bbb Foundsation spend its money?
Bbb Foundsation allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Bbb Foundsation's tax-exempt status?
You can verify Bbb Foundsation's tax-exempt status using EIN 202042606 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
Bbb Foundsation exhibits inconsistent financial performance over the past decade, with significant fluctuations in revenue and expenses. For instance, revenue soared to $6,003,087 in 2015 but dropped to $14,437 in 2019, indicating a lack of stable funding streams. The organization's assets have also varied widely, from $2,073,363 in 2023 to $212,498 in 2020, suggesting potential challenges in asset management or significant capital expenditures/dispositions.
Spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which are not provided in the summary data. However, the consistent reporting of 0% officer compensation across all filings suggests a commitment to minimizing executive overhead, which is a positive indicator for donor confidence.
Transparency appears to be adequate in terms of filing IRS Form 990s consistently. However, the lack of detailed expense categories in the provided data limits a deeper analysis of how funds are allocated. The organization's liabilities have consistently been reported as $0 or $1, which is a strong positive for financial stability, indicating minimal debt burden.