Is Beacon Of Hope Ministries Inc Legit?

Quick charity verification for Beacon Of Hope Ministries Inc (EIN: 205910520)

Verdict: Beacon Of Hope Ministries Inc shows mixed signals

65/100Mission Score

$28KRevenue

$4KAssets

3Red Flags

3Strengths

Red Flags

Expenses exceeded revenue in two out of four reported periods (2017 and 2018), indicating potential financial instability.
Limited financial detail available due to 990-EZ filing, making in-depth analysis of spending efficiency difficult.
Significant fluctuation in assets, from $11,813 in 2016 to $1,360 in 2018, before a slight recovery to $4,212 in 2019.

Strengths

Consistent reporting of 0% officer compensation across all filings (2016-2019), suggesting a volunteer-driven model or highly efficient executive cost management.
No reported liabilities in the latest filing (2019) and in 2016, indicating a debt-free position in those years.
Consistent filing of IRS 990-EZ forms, demonstrating compliance and basic transparency.

Spending Breakdown

How Beacon Of Hope Ministries Inc allocates its funds across programs, administration, and fundraising.

70%

Program Spending

Below average — room for improvement

20%

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 Of Hope Ministries Inc

Is Beacon Of Hope Ministries Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Beacon Of Hope Ministries Inc (EIN: 205910520) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.

Is Beacon Of Hope Ministries Inc a good charity to donate to?

Beacon Of Hope Ministries Inc has a Mission Score of 65/100. Revenue: $28K. Assets: $4K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Beacon Of Hope Ministries Inc?

The Employer Identification Number (EIN) for Beacon Of Hope Ministries Inc is 205910520. 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 Of Hope Ministries Inc spend its money?

Beacon Of Hope Ministries Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Beacon Of Hope Ministries Inc's tax-exempt status?

You can verify Beacon Of Hope Ministries Inc's tax-exempt status using EIN 205910520 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 Of Hope Ministries Inc operates on a very small scale, with its latest reported revenue at $28,443 and assets of $4,212. The organization has consistently reported zero officer compensation across all four available filings (2016-2019), which is a positive indicator for resource allocation directly to its mission. However, the financial data shows some volatility in expenses relative to revenue; for instance, in 2018, expenses ($30,955) exceeded revenue ($28,024), and similarly in 2017, expenses ($27,185) were higher than revenue ($24,001). This suggests potential reliance on prior year surpluses or short-term deficits. The organization's assets have also fluctuated, from a high of $11,813 in 2016 down to $1,360 in 2018, before recovering slightly to $4,212 in 2019. The absence of reported liabilities in 2019 and 2016 is a strength, indicating a debt-free position in those periods.

Given the limited financial details available from the 990-EZ filings (which do not require detailed breakdowns of program, administrative, and fundraising expenses), a precise assessment of spending efficiency is challenging. However, the consistent reporting of zero officer compensation suggests a commitment to minimizing overhead at the executive level. The organization's small size and fluctuating financial performance warrant closer examination for potential donors, particularly regarding how it manages periods where expenses exceed revenue. The lack of detailed expense categories in the available filings limits the ability to fully assess spending efficiency and program focus.

Transparency is moderate. While the organization files its 990-EZ forms, the simplified nature of these forms means less detailed financial information is publicly available compared to larger organizations filing full 990s. The consistent filing history is a positive aspect of transparency, demonstrating compliance with IRS requirements. However, without more granular data on how the $24,651 in expenses (2019) is allocated, it's difficult to fully gauge operational transparency beyond the top-line figures.

View Full Transparency Report →

Disclaimer

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