Is Capitol Heights Place Ii Inc Legit? —…

Quick charity verification for Capitol Heights Place Ii Inc (EIN: 205647621)

Red Flags

Consistent annual operating deficits (e.g., $112,631 deficit in 202406).
Declining asset base over time (from $4.7M in 2015 to $3.4M in 2024).
Liabilities consistently exceed assets by a significant margin (e.g., $5.4M liabilities vs. $3.4M assets in 2024).
Lack of reported officer compensation, potentially obscuring executive costs.
Limited detailed expense breakdown beyond total expenses.

Spending Breakdown

How Capitol Heights Place Ii 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 Capitol Heights Place Ii Inc

Is Capitol Heights Place Ii Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Capitol Heights Place Ii Inc (EIN: 205647621) shows mixed signals. Mission Score: 45/100. 5 red flags identified, 2 strengths noted.

Is Capitol Heights Place Ii Inc a good charity to donate to?

Capitol Heights Place Ii Inc has a Mission Score of 45/100. Revenue: $531K. Assets: $3.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Capitol Heights Place Ii Inc?

The Employer Identification Number (EIN) for Capitol Heights Place Ii Inc is 205647621. 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 Capitol Heights Place Ii Inc spend its money?

Capitol Heights Place Ii Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Capitol Heights Place Ii Inc's tax-exempt status?

You can verify Capitol Heights Place Ii Inc's tax-exempt status using EIN 205647621 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

Capitol Heights Place Ii Inc consistently operates with an annual deficit, as evidenced by its expenses regularly exceeding revenue. For instance, in the 202406 period, expenses were $621,731 against revenues of $509,100, resulting in a deficit of $112,631. This trend is consistent across all reported periods, indicating a reliance on existing assets or other funding mechanisms not fully captured by annual revenue. The organization's assets have also shown a steady decline over the years, from $4,697,132 in 201506 to $3,441,096 in 202406, while liabilities have remained relatively stable and high, consistently exceeding assets. This financial structure suggests potential long-term sustainability challenges if the deficits continue without a corresponding increase in revenue or reduction in expenses.

Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to fully assess. However, the consistent operational deficits raise questions about the efficiency of resource allocation. The absence of reported officer compensation across all filings suggests either a volunteer-led executive team or compensation is reported under other expense categories, which could impact transparency. The organization's NTEE code L21 (Low-Income Housing) indicates a focus on a critical community need, but the financial trends warrant closer scrutiny to ensure effective delivery of its mission given the financial constraints.

Transparency is generally good through the consistent filing of IRS Form 990s. However, the lack of specific expense breakdowns beyond total expenses makes it difficult for external stakeholders to understand how funds are allocated between direct program services, administrative overhead, and fundraising efforts. The high and stable liabilities, significantly exceeding assets, also require further explanation for complete financial transparency.

Is Capitol Heights Place Ii Inc Legit?

Verdict: Capitol Heights Place Ii Inc shows mixed signals