Is Council Towers Iii Housing Development Fund Corporation Legit?

Quick charity verification for Council Towers Iii Housing Development Fund Corporation (EIN: 133857947)

Verdict: Council Towers Iii Housing Development Fund Corporation appears trustworthy

75/100Mission Score

$2.0MRevenue

$3.8MAssets

4Red Flags

3Strengths

Red Flags

Consistent operational deficits, with expenses exceeding revenue in every reported year (e.g., $2,216,417 expenses vs. $1,852,122 revenue in 2023).
Declining asset base over the past decade, from $7,531,589 in 2014 to $3,970,322 in 2023.
High liabilities ($12-13 million) significantly outweighing assets, indicating a highly leveraged financial position.
No reported fundraising expenses, which could contribute to the consistent revenue shortfalls.

Strengths

100% of officer compensation reported as $0 across all filings, indicating strong financial stewardship regarding executive pay.
Clear program focus as indicated by NTEE code L200 (Housing Development, Construction & Management).
Consistent operation for over a decade, demonstrating resilience despite financial challenges.

Spending Breakdown

How Council Towers Iii Housing Development Fund Corporation allocates its funds across programs, administration, and fundraising.

90%

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 Council Towers Iii Housing Development Fund Corporation

Is Council Towers Iii Housing Development Fund Corporation a legitimate charity?

Based on AI analysis of IRS 990 filings, Council Towers Iii Housing Development Fund Corporation (EIN: 133857947) appears trustworthy. Mission Score: 75/100. 4 red flags identified, 3 strengths noted.

Is Council Towers Iii Housing Development Fund Corporation a good charity to donate to?

Council Towers Iii Housing Development Fund Corporation has a Mission Score of 75/100. Revenue: $2.0M. Assets: $3.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Council Towers Iii Housing Development Fund Corporation?

The Employer Identification Number (EIN) for Council Towers Iii Housing Development Fund Corporation is 133857947. 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 Council Towers Iii Housing Development Fund Corporation spend its money?

Council Towers Iii Housing Development Fund Corporation allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Council Towers Iii Housing Development Fund Corporation's tax-exempt status?

You can verify Council Towers Iii Housing Development Fund Corporation's tax-exempt status using EIN 133857947 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

Council Towers Iii Housing Development Fund Corporation appears to be a stable, albeit deficit-spending, organization focused on its program services. Over the past several years, the organization has consistently reported expenses exceeding revenue, for example, in 2023, expenses were $2,216,417 against revenues of $1,852,122. This trend suggests a reliance on existing assets or other funding mechanisms to cover operational costs, as total assets have steadily declined from $7,531,589 in 2014 to $3,970,322 in 2023. The organization's NTEE code L200 (Housing Development, Construction & Management) indicates a clear program focus, and the absence of reported officer compensation across all filings suggests a lean administrative structure, which is a positive indicator for spending efficiency. However, the consistent operating deficits warrant closer examination to understand their long-term financial sustainability strategy.

The organization's financial health, while showing consistent deficits, is supported by substantial assets relative to its annual revenue, though these assets are declining. The liabilities, consistently around $12-13 million, are significantly higher than assets, indicating a highly leveraged financial structure. The lack of officer compensation is a strong point for spending efficiency and transparency, as it suggests resources are directed towards the mission rather than executive salaries. However, the sustained negative net income year over year, with expenses consistently outpacing revenue, is a significant concern for long-term viability if not addressed by new funding or reduced spending.

Overall, Council Towers Iii demonstrates a commitment to its program by not reporting executive compensation, which enhances its transparency and efficiency score. However, the persistent operational deficits and declining asset base are critical areas for potential donors or stakeholders to investigate further. The organization's ability to sustain its operations with a consistent revenue shortfall needs a clear explanation to fully assess its financial health and long-term impact.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.