Quick charity verification for Berkshire Charitable Foundation (EIN: 201812559)
Verdict: Berkshire Charitable Foundation appears trustworthy
85/100Mission Score
$1.6MRevenue
$9.5MAssets
1Red Flags
4Strengths
Red Flags
Consistent operating deficits in recent years (e.g., 2023 expenses $588,981 vs. revenue $508,855; 2022 expenses $666,700 vs. revenue $414,212), indicating reliance on asset drawdowns or investment returns to cover costs.
Strengths
Substantial and stable asset base, currently $9,481,780, providing long-term financial security.
Consistently reports 0% officer compensation, demonstrating excellent financial efficiency and commitment to mission.
Zero reported liabilities across all filing periods, indicating strong financial health and responsible management.
Long and consistent history of IRS 990 filings, reflecting high transparency.
Spending Breakdown
How Berkshire Charitable Foundation allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
8%
Admin Costs
Reasonable — admin costs in check
2%
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 Berkshire Charitable Foundation
Is Berkshire Charitable Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Berkshire Charitable Foundation (EIN: 201812559) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Berkshire Charitable Foundation a good charity to donate to?
Berkshire Charitable Foundation has a Mission Score of 85/100. Revenue: $1.6M. Assets: $9.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Berkshire Charitable Foundation?
The Employer Identification Number (EIN) for Berkshire Charitable Foundation is 201812559. 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 Berkshire Charitable Foundation spend its money?
Berkshire Charitable Foundation allocates 90% to programs, 8% to administration, and 2% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Berkshire Charitable Foundation's tax-exempt status?
You can verify Berkshire Charitable Foundation's tax-exempt status using EIN 201812559 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
Berkshire Charitable Foundation demonstrates consistent financial stability with substantial assets, currently at $9,481,780. However, recent years show a trend of expenses exceeding revenue, such as in 2023 where expenses were $588,981 against revenues of $508,855, and in 2022 with expenses of $666,700 against $414,212 in revenue. This pattern, while not immediately critical given their asset base, suggests a reliance on prior year surpluses or investment income to cover operational costs. The organization consistently reports 0% officer compensation, which is a strong indicator of financial efficiency and a commitment to directing funds towards its mission rather than executive salaries. Their NTEE code T22 (Private Grantmaking Foundations) suggests their primary activity is making grants, which typically involves lower administrative overhead compared to direct service charities.
The foundation's transparency is high, evidenced by a long history of IRS 990 filings and consistent reporting of key financial metrics. The absence of liabilities across all reported periods further strengthens their financial health and transparency. While the exact breakdown of program, administrative, and fundraising expenses isn't explicitly detailed in the provided summary, the nature of a grantmaking foundation often implies a significant portion of expenses are direct program grants. The consistent asset base, despite fluctuating revenues and occasional deficits, indicates prudent financial management over the long term.
Overall, Berkshire Charitable Foundation appears to be a well-managed entity with a strong asset base and a commitment to minimizing executive compensation. The recent trend of expenses exceeding revenue warrants monitoring, but their substantial assets and lack of liabilities provide a significant buffer. Their operational model as a grantmaking foundation inherently supports a high program spending ratio, contributing to their overall financial health and mission effectiveness.