Quick charity verification for Building Dreams Incorporated (EIN: 208175343)
Verdict: Building Dreams Incorporated shows mixed signals
45/100Mission Score
$60KRevenue
$720KAssets
4Red Flags
2Strengths
Red Flags
Consistent operating deficits (expenses exceeding revenue in all reported periods)
Declining asset base (from $995,716 in 2015 to $745,357 in 2024)
Unsustainable financial model (reliance on asset depletion to cover operations)
Stagnant revenue growth over a decade
Strengths
0% officer compensation reported across all filings, indicating efficient use of funds at the executive level.
Long operational history with 14 filings, suggesting consistent commitment to its mission.
Spending Breakdown
How Building Dreams Incorporated 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 Building Dreams Incorporated
Is Building Dreams Incorporated a legitimate charity?
Based on AI analysis of IRS 990 filings, Building Dreams Incorporated (EIN: 208175343) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
Is Building Dreams Incorporated a good charity to donate to?
Building Dreams Incorporated has a Mission Score of 45/100. Revenue: $60K. Assets: $720K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Building Dreams Incorporated?
The Employer Identification Number (EIN) for Building Dreams Incorporated is 208175343. 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 Building Dreams Incorporated spend its money?
Building Dreams Incorporated allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Building Dreams Incorporated's tax-exempt status?
You can verify Building Dreams Incorporated's tax-exempt status using EIN 208175343 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
Building Dreams Incorporated consistently operates at a deficit, with expenses significantly exceeding revenue in all reported periods. For instance, in 2024, expenses were $84,282 against revenues of $54,059, indicating a reliance on prior assets or other non-revenue funding sources to cover operations. This trend of spending more than it earns is a long-standing pattern, observed across all 10 years of data provided. While the organization reports 0% officer compensation, which is a positive for transparency and resource allocation, the consistent decline in assets from $995,716 in 2015 to $745,357 in 2024 suggests a gradual depletion of its financial reserves. This financial model is not sustainable in the long term without a significant increase in revenue or reduction in expenses.
The organization's financial health appears precarious due to its persistent operating deficits and declining asset base. While the absence of officer compensation is commendable, the overall spending efficiency is questionable given the consistent overspending relative to income. The lack of detailed expense breakdowns in the provided data makes it difficult to fully assess program spending versus administrative or fundraising costs. However, the continuous erosion of assets points to a fundamental imbalance in its financial operations. Transparency regarding the specific uses of funds beyond the high-level revenue and expense figures would be beneficial for a more thorough assessment.
Despite the financial challenges, the organization has maintained a consistent level of activity, as evidenced by its stable expense levels over the years. The NTEE code L21 (Youth Development Programs) suggests a focus on direct program delivery. However, without a clear picture of how the expenses are allocated, it's challenging to determine the true impact and efficiency of its program spending. The consistent decline in assets, coupled with the ongoing operational deficits, raises concerns about the long-term viability and impact of Building Dreams Incorporated.