Is Cafa Inc Legit?

Red Flags

Consistent liabilities significantly exceeding assets, indicating potential financial instability or a complex funding structure (e.g., 202306: Liabilities $26,898,072, Assets $24,478,443).
No officer compensation reported across all 13 filings, which is unusual for an organization of this size and revenue, potentially obscuring leadership costs.
Significant increase in both assets and liabilities between 201806 and 201906 without clear explanation, suggesting a major financial restructuring or event.
Expenses frequently exceeding revenue (e.g., 202306: Expenses $12,378,269, Revenue $11,605,558), which could lead to depletion of reserves or increased debt over time.

Strengths

Consistent high revenue generation, often exceeding $10 million annually, indicating a robust funding base.
Long operational history with 13 IRS 990 filings, suggesting established presence and experience.
Significant asset base (over $24 million in recent years), despite being outweighed by liabilities, indicates substantial resources are managed by the organization.

Spending Breakdown

How Cafa Inc allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Cafa Inc

Is Cafa Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Cafa Inc (EIN: 10702652) shows mixed signals. Mission Score: 65/100. 4 red flags identified, 3 strengths noted.

Is Cafa Inc a good charity to donate to?

Cafa Inc has a Mission Score of 65/100. Revenue: $9.6M. Assets: $22.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Cafa Inc?

The Employer Identification Number (EIN) for Cafa Inc is 10702652. 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 Cafa Inc spend its money?

Cafa Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Cafa Inc's tax-exempt status?

You can verify Cafa Inc's tax-exempt status using EIN 10702652 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

Cafa Inc. demonstrates consistent operational activity with annual revenues generally exceeding $10 million in recent years. However, the organization has consistently reported liabilities that significantly outweigh its assets, as seen in the 202306 period where assets were $24,478,443 against liabilities of $26,898,072. This indicates a potential reliance on debt or specific funding structures that warrant closer examination. The absence of reported officer compensation across all filings suggests either a volunteer-led executive team or compensation being reported under different categories, which could impact transparency regarding leadership costs.

While specific program spending ratios are not provided in the raw data, the consistent reporting of expenses close to or exceeding revenue, such as in 202306 where expenses were $12,378,269 against revenue of $11,605,558, suggests that the organization is spending its income. The significant increase in assets from $826,994 in 201806 to over $24 million in 201906, while liabilities also surged, points to a major structural or operational change during that period, possibly related to asset acquisition or a change in accounting for certain funds. Further detail on this shift would enhance transparency.

Overall, Cafa Inc. appears to be a large, active organization, but its financial structure, particularly the high liabilities relative to assets and the lack of reported executive compensation, raises questions about its long-term financial stability and the completeness of its transparency. A deeper dive into the nature of its liabilities and the allocation of its expenses would provide a clearer picture of its financial health and efficiency.

Verdict: Cafa Inc shows mixed signals