Is Cedar Hill Foundation Legit?

Red Flags

Consistent operating deficits: Expenses have frequently exceeded revenue, notably in 2023 ($810,254 expenses vs. $707,079 revenue) and 2022 ($949,103 expenses vs. $208,296 revenue).
Declining asset base: Assets have decreased from $14,172,061 in 2019 to $13,163,921 in 2023, suggesting the organization may be drawing down reserves.
Significant revenue volatility: Revenue has shown extreme fluctuations, including a negative revenue figure of $-160,790 in 2012, which warrants further investigation.
High expense-to-revenue ratio in some years: In 2022, expenses were nearly 4.5 times revenue, indicating a severe financial imbalance for that period.

Strengths

Substantial asset base: The organization maintains over $13 million in assets, providing a significant financial cushion.
No reported officer compensation: Consistently reporting 0% officer compensation is a strong indicator of low executive overhead and commitment to mission.
Low liabilities: Liabilities are consistently reported as very low ($1 in recent years, $0 in earlier years), indicating good financial management of debt.

Spending Breakdown

How Cedar Hill Foundation 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 Cedar Hill Foundation

Is Cedar Hill Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Cedar Hill Foundation (EIN: 133948444) shows mixed signals. Mission Score: 60/100. 4 red flags identified, 3 strengths noted.

Is Cedar Hill Foundation a good charity to donate to?

Cedar Hill Foundation has a Mission Score of 60/100. Revenue: $4.2M. Assets: $13.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Cedar Hill Foundation?

The Employer Identification Number (EIN) for Cedar Hill Foundation is 133948444. 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 Cedar Hill Foundation spend its money?

Cedar Hill Foundation allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Cedar Hill Foundation's tax-exempt status?

You can verify Cedar Hill Foundation's tax-exempt status using EIN 133948444 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

Cedar Hill Foundation exhibits a concerning trend of operating deficits in recent years, with expenses consistently exceeding revenue. For instance, in 2023, expenses were $810,254 against revenues of $707,079, and in 2022, expenses were $949,103 compared to revenues of $208,296. This sustained deficit spending, particularly the significant gap in 2022, raises questions about the long-term financial sustainability of the organization, despite its substantial asset base of over $13 million.

The organization's financial health appears to be supported by its significant assets, which have remained relatively stable over the past decade, fluctuating around the $12-14 million mark. However, the consistent decline in assets from $14,172,061 in 2019 to $13,163,921 in 2023, alongside the operating deficits, suggests that the organization may be drawing down its reserves to cover operational costs. The lack of reported officer compensation across all filings indicates a potential reliance on volunteer leadership or that compensation is reported under other expense categories, which could impact transparency regarding administrative costs.

Given the available data, it's challenging to fully assess spending efficiency without a detailed breakdown of program, administrative, and fundraising expenses. However, the consistent operating deficits and the gradual decline in assets are significant indicators that warrant closer scrutiny. The organization's transparency regarding executive compensation is high, as no officer compensation is reported, which is a positive sign for donor confidence in that specific area.

Verdict: Cedar Hill Foundation shows mixed signals