Is Clark Shores Water Corporation Legit? —…

Quick charity verification for Clark Shores Water Corporation (EIN: 10654140)

Red Flags

Consistent operating deficits: Expenses have significantly outpaced revenue since 2021, with a $213,770 deficit in 2023.
Increasing liabilities: Liabilities have grown to $2,469,573 in 2023, representing a substantial portion of total assets.
Lack of detailed expense breakdown: Without a clear breakdown of program, administrative, and fundraising expenses, it's difficult to fully assess spending efficiency.

Strengths

No officer compensation reported: Consistently 0% officer compensation across all filings indicates a volunteer-driven leadership or very lean executive overhead.
Substantial asset base: The organization maintains significant assets, totaling $3,551,278 in 2023, providing a financial buffer.
Long operating history: With 13 filings, the organization has a long history of providing services.

Spending Breakdown

How Clark Shores Water Corporation allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

Admin Costs

Reasonable — admin costs in check

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 Clark Shores Water Corporation

Is Clark Shores Water Corporation a legitimate charity?

Based on AI analysis of IRS 990 filings, Clark Shores Water Corporation (EIN: 10654140) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.

Is Clark Shores Water Corporation a good charity to donate to?

Clark Shores Water Corporation has a Mission Score of 65/100. Revenue: $231K. Assets: $3.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Clark Shores Water Corporation?

The Employer Identification Number (EIN) for Clark Shores Water Corporation is 10654140. 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 Clark Shores Water Corporation spend its money?

Clark Shores Water Corporation allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Clark Shores Water Corporation's tax-exempt status?

You can verify Clark Shores Water Corporation's tax-exempt status using EIN 10654140 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

Clark Shores Water Corporation, a water utility, demonstrates a mixed financial picture. While the organization maintains substantial assets, reaching $3,551,278 in 2023, its recent financial performance shows a trend of expenses significantly exceeding revenue. For instance, in 2023, expenses were $344,482 against revenues of $130,712, resulting in a substantial deficit. This pattern of deficit spending has been consistent since 2021, with expenses exceeding revenue by over $100,000 in both 2022 and 2023. The organization's liabilities have also been increasing, reaching $2,469,573 in 2023, which represents a significant portion of its assets.

The organization's NTEE code (Y22 - Water Utilities) suggests its primary function is providing water services, which aligns with its operational nature. A notable strength is the consistent reporting of 0% officer compensation across all available filings, indicating a volunteer-led or very lean executive structure, which can be a positive sign for donor confidence regarding administrative overhead. However, the lack of detailed expense breakdowns in the provided data makes it challenging to fully assess spending efficiency beyond the overall revenue-expense imbalance. The significant revenue spike in 2019 ($1,068,069) followed by a return to lower levels warrants further investigation to understand its nature and whether it was an anomaly or a specific project.

Is Clark Shores Water Corporation Legit?

Verdict: Clark Shores Water Corporation shows mixed signals