Quick charity verification for Blue Ocean Inc (EIN: 204360719)
Verdict: Blue Ocean Inc shows mixed signals
55/100Mission Score
$2.9MRevenue
$8.2MAssets
4Red Flags
2Strengths
Red Flags
Consistent and significant operating deficits in recent years (e.g., $256,273 in 2023, $331,164 in 2022).
Drastic decline in revenue from $1,308,255 in 2016 to $125,624 in 2023.
Expenses consistently higher than revenue for multiple consecutive periods (2020-2023).
Lack of detailed functional expense breakdown (program, admin, fundraising) in summary data, hindering efficiency assessment.
Strengths
Substantial asset base of $8,209,755 provides financial stability and a buffer against operating deficits.
No reported officer compensation across all filings, indicating potentially low executive overhead or volunteer leadership.
Spending Breakdown
How Blue Ocean 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 Blue Ocean Inc
Is Blue Ocean Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Blue Ocean Inc (EIN: 204360719) shows mixed signals. Mission Score: 55/100. 4 red flags identified, 2 strengths noted.
Is Blue Ocean Inc a good charity to donate to?
Blue Ocean Inc has a Mission Score of 55/100. Revenue: $2.9M. Assets: $8.2M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Blue Ocean Inc?
The Employer Identification Number (EIN) for Blue Ocean Inc is 204360719. 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 Blue Ocean Inc spend its money?
Blue Ocean Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Blue Ocean Inc's tax-exempt status?
You can verify Blue Ocean Inc's tax-exempt status using EIN 204360719 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
Blue Ocean Inc. exhibits a concerning financial trend with expenses consistently exceeding revenue in recent years, particularly from 2020 to 2023. For instance, in 2023, the organization reported revenue of $125,624 against expenses of $381,897, indicating a significant operating deficit. This pattern suggests reliance on prior reserves or other non-operating income sources to cover costs. While the organization holds substantial assets of $8,209,755, the consistent net losses raise questions about the sustainability of its current operational model. The lack of reported officer compensation across all available filings suggests either a volunteer-led executive team or compensation being reported under other expense categories, which could impact transparency regarding leadership costs.
The organization's financial health appears to be in decline based on recent operating results, despite a strong asset base. The significant drop in revenue from $1,308,255 in 2016 to $125,624 in 2023, coupled with rising expenses, is a critical area of concern. Without a detailed breakdown of functional expenses (program, administrative, fundraising), it's challenging to fully assess spending efficiency. However, the consistent operating deficits indicate that current revenue streams are insufficient to support the organization's activities. The absence of officer compensation reporting is a positive sign for minimizing overhead, but further clarity on how expenses are categorized would enhance transparency.
Overall, Blue Ocean Inc. demonstrates a strong asset base but a weak operational financial performance in recent years. The substantial assets could provide a buffer, but the trend of expenses far outpacing revenue is unsustainable long-term. Improved financial reporting transparency, especially regarding the allocation of expenses and the source of funding for deficits, would be beneficial for stakeholders.