Is Beacon Foundation Inc Legit?

Red Flags

Persistent and significant deficit spending (e.g., $5.29M deficit in 202406).
Rapid decline in total assets over the past decade (from $49.69M in 201406 to $16.63M in 202406).
Revenue consistently far below expenses for multiple consecutive years.
Unusually low (0%) reported officer compensation for an organization of this size, which may obscure actual executive remuneration.

Spending Breakdown

How Beacon Foundation Inc 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 Beacon Foundation Inc

Is Beacon Foundation Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Beacon Foundation Inc (EIN: 202734721) shows mixed signals. Mission Score: 40/100. 4 red flags identified, 1 strength noted.

Is Beacon Foundation Inc a good charity to donate to?

Beacon Foundation Inc has a Mission Score of 40/100. Revenue: $4.5M. Assets: $17.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Beacon Foundation Inc?

The Employer Identification Number (EIN) for Beacon Foundation Inc is 202734721. 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 Beacon Foundation Inc spend its money?

Beacon Foundation Inc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Beacon Foundation Inc's tax-exempt status?

You can verify Beacon Foundation Inc's tax-exempt status using EIN 202734721 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

Beacon Foundation Inc. exhibits concerning financial trends, particularly a consistent and significant deficit spending pattern over the past several years. In the 202406 period, the organization spent $6,174,370 against revenues of only $880,266, indicating a substantial reliance on existing assets or other non-revenue sources to cover operations. This trend is not isolated, as similar deficits are observed in 202306 ($5,050,421 expenses vs. $705,854 revenue) and 202206 ($3,502,636 expenses vs. $543,938 revenue). This prolonged deficit spending has led to a notable decline in assets, from a high of $49,690,282 in 201406 to $16,631,820 in 202406, suggesting the organization is liquidating its endowment or reserves to sustain operations.

The organization's transparency regarding executive compensation is positive, with 0% reported officer compensation across all available filings, which is unusual for an organization of its size and asset base. However, the lack of detailed program, administrative, and fundraising expense breakdowns in the provided data makes a precise assessment of spending efficiency challenging. Without these details, it's difficult to determine if the significant expenses are primarily directed towards mission-related programs or if administrative and fundraising costs are disproportionately high. The consistent decline in assets coupled with persistent deficit spending raises questions about the long-term financial viability and sustainability of Beacon Foundation Inc.

Verdict: Beacon Foundation Inc shows mixed signals