Quick charity verification for Brooklyn Arts Exchange Inc (EIN: 113071458)
Verdict: Brooklyn Arts Exchange Inc appears trustworthy
85/100Mission Score
$1.9MRevenue
$4.7MAssets
1Red Flags
4Strengths
Red Flags
Significant increase in liabilities from $401,181 in 2022 to $2,951,551 in 2023 without clear explanation in summary data.
Strengths
Consistent revenue growth, more than doubling from $1,119,888 in 2021 to $2,741,188 in 2023.
Substantial asset accumulation, increasing from $512,604 in 2021 to $4,495,296 in 2023.
Zero reported officer compensation across all available filings, indicating strong financial efficiency and commitment to mission.
Positive net income in most recent years (e.g., $2,741,188 revenue vs. $1,847,712 expenses in 2023).
Spending Breakdown
How Brooklyn Arts Exchange Inc allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
10%
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 Brooklyn Arts Exchange Inc
Is Brooklyn Arts Exchange Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Brooklyn Arts Exchange Inc (EIN: 113071458) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Brooklyn Arts Exchange Inc a good charity to donate to?
Brooklyn Arts Exchange Inc has a Mission Score of 85/100. Revenue: $1.9M. Assets: $4.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Brooklyn Arts Exchange Inc?
The Employer Identification Number (EIN) for Brooklyn Arts Exchange Inc is 113071458. 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 Brooklyn Arts Exchange Inc spend its money?
Brooklyn Arts Exchange Inc allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Brooklyn Arts Exchange Inc's tax-exempt status?
You can verify Brooklyn Arts Exchange Inc's tax-exempt status using EIN 113071458 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
Brooklyn Arts Exchange Inc (BAX) demonstrates a generally healthy financial trajectory, marked by significant revenue growth and asset accumulation in recent years. From 2021 to 2023, revenue more than doubled from $1,119,888 to $2,741,188, indicating strong fundraising or program income. This growth has also led to a substantial increase in assets, jumping from $512,604 in 2021 to $4,495,296 in 2023, suggesting effective financial management and investment in its mission. The organization consistently reports 0% officer compensation, which is a strong indicator of transparency and a commitment to directing funds towards programs rather than executive salaries. While specific spending breakdowns for programs, administration, and fundraising are not provided in the raw data, the absence of officer compensation is a positive sign for donor confidence.
However, the rapid increase in liabilities from $401,181 in 2022 to $2,951,551 in 2023 warrants closer examination. While assets have also grown significantly, this substantial increase in liabilities could indicate new debt or deferred revenue related to expansion or capital projects. The organization's consistent reporting of 0% officer compensation across all available filings is a notable strength in terms of transparency and efficient use of funds, as it suggests that leadership is either unpaid or compensated through other means not classified as officer compensation, or that the organization is run by volunteers. Overall, BAX appears to be a growing and financially stable organization, particularly in its recent history, with a strong commitment to minimizing executive overhead.