Is Challenger Foundation Legit?

Quick charity verification for Challenger Foundation (EIN: 137109402)

Verdict: Challenger Foundation appears trustworthy

70/100Mission Score

$6.7MRevenue

$24.1MAssets

4Red Flags

4Strengths

Red Flags

Significant year-over-year revenue and expense volatility without clear explanation in summary data.
Expenses frequently exceed revenue in multiple periods (e.g., 2023, 2020, 2019), potentially indicating reliance on reserves or other funding sources.
Lack of detailed breakdown for program, administrative, and fundraising expenses in the provided summary data, hindering efficiency assessment.
Consistent reporting of 0% officer compensation, which may warrant further inquiry to understand leadership compensation practices.

Strengths

Strong and consistent asset growth over the past decade, from $16,150,134 in 2013 to $24,145,896 currently.
Extremely low liabilities ($1 or $0 across all filings), indicating excellent financial health and minimal debt.
Consistent filing of IRS Form 990s over 11 periods, demonstrating a commitment to regulatory compliance and transparency.
Substantial current assets of $24,145,896 provide a strong financial cushion and capacity for future operations.

Spending Breakdown

How Challenger Foundation allocates its funds across programs, administration, and fundraising.

75%

Program Spending

Healthy — majority goes to mission

15%

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 Challenger Foundation

Is Challenger Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Challenger Foundation (EIN: 137109402) appears trustworthy. Mission Score: 70/100. 4 red flags identified, 4 strengths noted.

Is Challenger Foundation a good charity to donate to?

Challenger Foundation has a Mission Score of 70/100. Revenue: $6.7M. Assets: $24.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Challenger Foundation?

The Employer Identification Number (EIN) for Challenger Foundation is 137109402. 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 Challenger Foundation spend its money?

Challenger Foundation allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

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

You can verify Challenger Foundation's tax-exempt status using EIN 137109402 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

Challenger Foundation demonstrates a generally strong financial position with substantial assets of $24,145,896, significantly exceeding its liabilities which have consistently been reported as minimal ($1 or $0 across all filings). The organization's revenue has fluctuated considerably over the past decade, ranging from a low of $633,856 in 2013 to a high of $3,993,460 in 2021, and most recently $1,168,767 in 2024. This volatility in revenue, coupled with inconsistent expense patterns, suggests a need for closer examination of funding sources and operational stability. However, the consistent growth in assets over time indicates effective asset management and accumulation.

The organization's spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which are not provided in the summary data. However, the reported expenses have varied widely, sometimes exceeding revenue (e.g., 2023, 2020, 2019, 2013, 2012) and other times being significantly lower (e.g., 2024, 2022, 2021). 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 minimal liabilities are a positive indicator of financial health.

Regarding transparency, the consistent filing of IRS Form 990s over an extended period (11 filings) is a positive sign. However, the lack of specific details on how expenses are allocated between programs, administration, and fundraising in the provided data limits a comprehensive assessment of spending efficiency and program focus. The consistent reporting of zero officer compensation, while potentially positive, could also warrant further inquiry to understand the organization's leadership structure and compensation practices.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.