Quick charity verification for Cottonwood Institute (EIN: 201822172)
Verdict: Cottonwood Institute appears trustworthy
88/100Mission Score
$739KRevenue
$356KAssets
2Red Flags
4Strengths
Red Flags
Slight operating deficit in the most recent fiscal period (202309: Expenses $700,348 vs. Revenue $692,538)
Increasing liabilities trend from $0 in 201809 to $172,220 in 202309
Strengths
Consistent and significant revenue growth over the past decade (from $145,786 in 201409 to $692,538 in 202309)
Zero reported officer compensation across all 13 filings, indicating strong resource allocation to programs
Healthy asset growth from $149,426 in 201409 to $416,199 in 202309
Long and consistent IRS 990 filing history (13 filings), demonstrating transparency
Spending Breakdown
How Cottonwood Institute 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 Cottonwood Institute
Is Cottonwood Institute a legitimate charity?
Based on AI analysis of IRS 990 filings, Cottonwood Institute (EIN: 201822172) appears trustworthy. Mission Score: 88/100. 2 red flags identified, 4 strengths noted.
Is Cottonwood Institute a good charity to donate to?
Cottonwood Institute has a Mission Score of 88/100. Revenue: $739K. Assets: $356K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Cottonwood Institute?
The Employer Identification Number (EIN) for Cottonwood Institute is 201822172. 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 Cottonwood Institute spend its money?
Cottonwood Institute allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Cottonwood Institute's tax-exempt status?
You can verify Cottonwood Institute's tax-exempt status using EIN 201822172 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
Cottonwood Institute demonstrates consistent growth in revenue and assets over the past decade, indicating a stable financial trajectory. In the most recent filing (202309), the organization reported revenue of $692,538 against expenses of $700,348, resulting in a slight deficit for that period. However, this is a minor fluctuation given the overall positive trend and healthy asset base of $416,199. The organization's liabilities have increased in recent years, reaching $172,220 in 202309, which warrants monitoring but is not immediately concerning relative to its assets.
The organization appears to maintain strong spending efficiency, with a significant portion of its expenses likely directed towards program services, although specific program spending ratios are not provided in the summary data. The consistent reporting of 0% officer compensation across all filings suggests a commitment to directing funds towards its mission rather than executive salaries, which is a positive indicator of financial stewardship. The growth from $145,786 in revenue in 201409 to $692,538 in 202309 highlights substantial expansion and fundraising success.
Transparency is generally good, with a consistent filing history of 13 IRS 990 forms. The absence of reported officer compensation is a notable aspect of its financial structure, contributing to a perception of strong program focus. While the summary data doesn't detail administrative or fundraising costs, the overall financial health, marked by increasing assets and revenue, suggests a well-managed organization.