Quick charity verification for Chelsea Recovery Clubhouse Inc (EIN: 205478541)
Verdict: Chelsea Recovery Clubhouse Inc has notable concerns
10/100Mission Score
$141KRevenue
$70KAssets
5Red Flags
2Strengths
Red Flags
Consistent reporting of $0 expenses across all 14 filings, making financial analysis impossible.
Negative revenue reported in recent years (e.g., $-11,058 in 2023, $-10,137 in 2022), indicating financial instability or reporting issues.
Lack of transparency regarding operational activities due to absent expense details.
Inability to assess program efficiency or impact without any expense breakdown.
Fluctuating assets with recent decline (from $73,012 in 2022 to $50,809 in 2023) amidst negative revenue and zero expenses.
Strengths
No reported liabilities across all filings, indicating a debt-free status.
No reported officer compensation, suggesting funds are not being used for executive salaries.
Spending Breakdown
How Chelsea Recovery Clubhouse Inc allocates its funds across programs, administration, and fundraising.
0%
Program Spending
Concerning — less than half to programs
0%
Admin Costs
Reasonable — admin costs in check
0%
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 Chelsea Recovery Clubhouse Inc
Is Chelsea Recovery Clubhouse Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Chelsea Recovery Clubhouse Inc (EIN: 205478541) has notable concerns. Mission Score: 10/100. 5 red flags identified, 2 strengths noted.
Is Chelsea Recovery Clubhouse Inc a good charity to donate to?
Chelsea Recovery Clubhouse Inc has a Mission Score of 10/100. Revenue: $141K. Assets: $70K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Chelsea Recovery Clubhouse Inc?
The Employer Identification Number (EIN) for Chelsea Recovery Clubhouse Inc is 205478541. 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 Chelsea Recovery Clubhouse Inc spend its money?
Chelsea Recovery Clubhouse Inc allocates 0% to programs, 0% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Chelsea Recovery Clubhouse Inc's tax-exempt status?
You can verify Chelsea Recovery Clubhouse Inc's tax-exempt status using EIN 205478541 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
Chelsea Recovery Clubhouse Inc. exhibits a concerning financial trend with negative revenues reported in recent years, specifically -$11,058 in 2023 and -$10,137 in 2022. This suggests the organization is losing money rather than generating it, which is unsustainable. A significant red flag is the consistent reporting of $0 in expenses across all available filings. This indicates either a severe lack of detailed financial reporting or that the organization is not actively incurring operational costs, which is highly unusual for an active nonprofit. The organization's assets have fluctuated, reaching a high of $73,012 in 2022 before decreasing to $50,809 in 2023. The absence of reported liabilities is positive, but the overall financial picture is opaque due to the lack of expense detail.
The consistent reporting of zero expenses makes it impossible to assess spending efficiency or program focus. Without a breakdown of how funds are utilized, it's impossible to determine what percentage goes to programs, administration, or fundraising. This lack of transparency in expense reporting severely hinders any meaningful financial analysis and raises questions about the organization's operational activities and accountability. The negative revenue figures further compound these concerns, suggesting potential financial instability or reporting errors.
Given the complete absence of reported expenses, it is impossible to evaluate the organization's spending efficiency or program effectiveness. The financial data provided is insufficient to determine if the organization is actively pursuing its mission or if it is merely a dormant entity. The lack of detailed financial information, particularly regarding expenses, is a major transparency issue that prevents a proper assessment of its financial health and operational integrity.