Quick charity verification for Book Trust (EIN: 204124164)
Verdict: Book Trust appears trustworthy
88/100Mission Score
$5.5MRevenue
$1.9MAssets
2Red Flags
4Strengths
Red Flags
Expenses consistently exceeding revenue in the last two reported periods (202406 and 202306), indicating potential financial unsustainability if not addressed.
Significant decrease in assets from $4,821,313 in 202206 to $2,079,743 in 202406, suggesting reliance on reserves to cover operating deficits.
Strengths
Consistent reporting of 0% officer compensation, indicating a strong commitment to directing funds to programs.
Historically strong program spending, demonstrating a clear focus on its mission.
Maintained a healthy asset-to-liability ratio, even with recent asset decreases, suggesting underlying financial stability.
Long filing history (13 filings) indicates consistent compliance and transparency.
Spending Breakdown
How Book Trust allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
5%
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 Book Trust
Is Book Trust a legitimate charity?
Based on AI analysis of IRS 990 filings, Book Trust (EIN: 204124164) appears trustworthy. Mission Score: 88/100. 2 red flags identified, 4 strengths noted.
Is Book Trust a good charity to donate to?
Book Trust has a Mission Score of 88/100. Revenue: $5.5M. Assets: $1.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Book Trust?
The Employer Identification Number (EIN) for Book Trust is 204124164. 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 Book Trust spend its money?
Book Trust allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Book Trust's tax-exempt status?
You can verify Book Trust's tax-exempt status using EIN 204124164 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
Book Trust demonstrates a strong commitment to its program services, consistently allocating a significant portion of its expenses to direct program activities. For instance, in the 202406 period, with total expenses of $5,419,936, the organization maintained a high program spending ratio. The organization's financial health shows some fluctuations in recent years, with expenses exceeding revenue in the 202406 and 202306 periods, leading to a decrease in assets from $4,821,313 in 202206 to $2,079,743 in 202406. This trend warrants monitoring to ensure long-term sustainability.
Despite these recent operating deficits, Book Trust has maintained a healthy asset base relative to its liabilities, indicating a generally stable financial position. The consistent reporting of 0% officer compensation across all available filings suggests a high degree of transparency and a focus on directing funds towards its mission rather than executive salaries. This practice is commendable and contributes positively to its overall transparency profile.
Overall, Book Trust appears to be a well-managed organization with a clear focus on its mission, as evidenced by its spending patterns and executive compensation practices. However, the recent trend of expenses exceeding revenue requires attention to ensure the organization can continue its valuable work without depleting its reserves too rapidly.