Consistent operational deficits (expenses exceeding revenue in recent years)
Negative revenue reported in 2020 ($-495,202)
Significant increase in liabilities from $233,431 in 2021 to $1,354,096 in 2022
Declining asset base over the past decade, from $2.7M in 2013 to $384K in 2022
High liabilities relative to assets in recent years, indicating potential insolvency risk
Strengths
No officer compensation reported, indicating resources are not diverted to executive salaries.
Long filing history (13 filings) provides extensive data for analysis.
Spending Breakdown
How Connecticut Challenge Inc 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 Connecticut Challenge Inc
Is Connecticut Challenge Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Connecticut Challenge Inc (EIN: 202777748) shows mixed signals. Mission Score: 45/100. 5 red flags identified, 2 strengths noted.
Is Connecticut Challenge Inc a good charity to donate to?
Connecticut Challenge Inc has a Mission Score of 45/100. Revenue: $613K. Assets: $317K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Connecticut Challenge Inc?
The Employer Identification Number (EIN) for Connecticut Challenge Inc is 202777748. 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 Connecticut Challenge Inc spend its money?
Connecticut Challenge Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Connecticut Challenge Inc's tax-exempt status?
You can verify Connecticut Challenge Inc's tax-exempt status using EIN 202777748 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
Connecticut Challenge Inc. exhibits concerning financial trends, particularly a consistent pattern of expenses exceeding revenue in recent years. For instance, in 2022, expenses were $796,022 against revenues of $542,811, and in 2021, expenses were $604,912 compared to $547,286 in revenue. This indicates an operational deficit that is not sustainable long-term. The organization also reported negative revenue in 2020 ($-495,202), which is highly unusual and warrants further investigation into its financial reporting practices. While executive compensation is reported as 0%, which is positive for transparency, the overall financial health appears precarious given the declining assets and increasing liabilities in some periods, such as liabilities jumping from $233,431 in 2021 to $1,354,096 in 2022.