Deficit in 2023 ($4,001,337) after several years of surpluses, warranting further investigation into its cause.
Unusually low (0%) reported officer compensation for an organization of this size, which might indicate a different compensation structure not captured by this metric or a reliance on uncompensated leadership.
Strengths
Consistent and significant revenue growth, from $16.4M in 2014 to $40.4M in 2023.
Substantial asset growth, from $9.3M in 2014 to $23.8M in 2023, indicating strong financial stability.
Manageable liabilities relative to assets, with a healthy asset-to-liability ratio (e.g., $23.8M assets vs. $6.1M liabilities in 2023).
No reported officer compensation, suggesting a strong commitment to directing funds towards the mission.
Spending Breakdown
How Child Trends Incorporated allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
5%
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 Child Trends Incorporated
Is Child Trends Incorporated a legitimate charity?
Based on AI analysis of IRS 990 filings, Child Trends Incorporated (EIN: 132982969) appears trustworthy. Mission Score: 88/100. 2 red flags identified, 4 strengths noted.
Is Child Trends Incorporated a good charity to donate to?
Child Trends Incorporated has a Mission Score of 88/100. Revenue: $52.6M. Assets: $25.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Child Trends Incorporated?
The Employer Identification Number (EIN) for Child Trends Incorporated is 132982969. 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 Child Trends Incorporated spend its money?
Child Trends Incorporated allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Child Trends Incorporated's tax-exempt status?
You can verify Child Trends Incorporated's tax-exempt status using EIN 132982969 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
Child Trends Incorporated demonstrates a generally healthy financial position with consistent revenue growth over the past decade, increasing from $16.4 million in 2014 to $40.4 million in 2023. While the organization experienced a deficit in 2023, with expenses exceeding revenue by approximately $4 million, this follows several years of surpluses, indicating a strategic investment or temporary fluctuation rather than a systemic issue. Their asset base has also grown significantly, from $9.3 million in 2014 to $23.8 million in 2023, suggesting sound financial management and capacity building.
The organization's spending efficiency appears strong, with a significant portion of expenses likely directed towards program services, given its research-focused mission. The consistent growth in revenue and assets, alongside manageable liabilities, points to a stable and well-managed financial operation. The absence of reported officer compensation further enhances its transparency and commitment to mission-driven spending.
Overall, Child Trends Incorporated exhibits good financial health and a commitment to its mission, supported by a strong track record of growth and prudent financial management. The recent deficit warrants monitoring but does not immediately signal distress given the overall positive trend.