Quick charity verification for Covenant Commonwealth Corporation (EIN: 204158996)
Verdict: Covenant Commonwealth Corporation has notable concerns
20/100Mission Score
$3.2MRevenue
$7.9MAssets
4Red Flags
3Strengths
Red Flags
Extremely low reported expenses relative to revenue across multiple years (e.g., $350 expenses on $168,222 revenue in 2023).
Significant asset accumulation ($987,390 in 2015 to $5,482,330 in 2023) without corresponding program spending.
Consistent 0% officer compensation despite substantial organizational size and revenue.
Lack of clarity on how the organization's mission (Housing Development) is being fulfilled with minimal reported expenditures.
Strengths
Consistent revenue generation, with latest revenue at $3,207,354.
Strong asset growth, indicating financial stability and capacity.
No reported officer compensation, potentially indicating a volunteer-driven leadership.
Spending Breakdown
How Covenant Commonwealth Corporation allocates its funds across programs, administration, and fundraising.
1%
Program Spending
Concerning — less than half to programs
1%
Admin Costs
Reasonable — admin costs in check
98%
Fundraising
Above average fundraising costs
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 Covenant Commonwealth Corporation
Is Covenant Commonwealth Corporation a legitimate charity?
Based on AI analysis of IRS 990 filings, Covenant Commonwealth Corporation (EIN: 204158996) has notable concerns. Mission Score: 20/100. 4 red flags identified, 3 strengths noted.
Is Covenant Commonwealth Corporation a good charity to donate to?
Covenant Commonwealth Corporation has a Mission Score of 20/100. Revenue: $3.2M. Assets: $7.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Covenant Commonwealth Corporation?
The Employer Identification Number (EIN) for Covenant Commonwealth Corporation is 204158996. 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 Covenant Commonwealth Corporation spend its money?
Covenant Commonwealth Corporation allocates 1% to programs, 1% to administration, and 98% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Covenant Commonwealth Corporation's tax-exempt status?
You can verify Covenant Commonwealth Corporation's tax-exempt status using EIN 204158996 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
Covenant Commonwealth Corporation exhibits a highly unusual financial pattern, with reported expenses consistently and significantly lower than revenue across multiple years. For instance, in 2023, revenue was $168,222 while expenses were only $350, and in 2021, revenue was $2,891,192 with expenses at $2,378. This discrepancy raises significant questions about how the organization is classifying its expenditures or if a substantial portion of its revenue is being held as unrestricted net assets rather than being spent on programs or operations. The organization's assets have grown substantially from $987,390 in 2015 to $5,482,330 in 2023, further indicating a pattern of accumulating resources rather than expending them. Without more detailed information on the nature of these 'expenses' and the organization's program activities, it is difficult to assess its spending efficiency or the direct impact of its financial activities.
The consistent reporting of zero officer compensation across all available filings suggests either a fully volunteer-led executive team or that compensation is being reported in a different category, which would require further investigation for full transparency. The NTEE code L20 (Housing Development, Construction & Management) implies significant operational costs, making the reported low expenses particularly perplexing. The lack of detailed expense breakdowns in the provided data prevents a clear assessment of program versus administrative or fundraising spending. The organization's financial health, as measured by asset growth, appears strong, but its operational efficiency and program delivery effectiveness are unclear due to the unusual expense reporting.