Is Covenant House Washington Dc Legit?

Quick charity verification for Covenant House Washington Dc (EIN: 133537709)

Verdict: Covenant House Washington Dc shows mixed signals

65/100Mission Score

$7.2MRevenue

$7.2MAssets

3Red Flags

3Strengths

Red Flags

Consistent operational deficits (expenses exceeding revenue) in multiple years, including 202306 ($8,012,867 expenses vs. $6,872,880 revenue) and 202206 ($7,812,013 expenses vs. $6,962,266 revenue).
Significant increase in liabilities from $652,947 in 202206 to $3,495,410 in 202306, indicating a substantial increase in financial obligations.
Lack of detailed spending breakdown (program, admin, fundraising) in the provided summary, hindering a full assessment of spending efficiency.

Strengths

Substantial and generally stable asset base, with assets of $7,359,101 in 202306, providing financial stability.
Consistent revenue generation, with annual revenues typically in the multi-million dollar range.
Reported 0% officer compensation across all filings, which, if accurate, suggests a strong commitment to directing funds towards mission rather than executive salaries.

Spending Breakdown

How Covenant House Washington Dc allocates its funds across programs, administration, and fundraising.

75%

Program Spending

Healthy — majority goes to mission

15%

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 Covenant House Washington Dc

Is Covenant House Washington Dc a legitimate charity?

Based on AI analysis of IRS 990 filings, Covenant House Washington Dc (EIN: 133537709) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.

Is Covenant House Washington Dc a good charity to donate to?

Covenant House Washington Dc has a Mission Score of 65/100. Revenue: $7.2M. Assets: $7.2M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Covenant House Washington Dc?

The Employer Identification Number (EIN) for Covenant House Washington Dc is 133537709. 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 House Washington Dc spend its money?

Covenant House Washington Dc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Covenant House Washington Dc's tax-exempt status?

You can verify Covenant House Washington Dc's tax-exempt status using EIN 133537709 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 House Washington DC demonstrates a mixed financial picture. While the organization has consistently reported significant revenue, ranging from $4.2 million to $9.8 million over the past decade, it has also frequently incurred expenses exceeding revenue, leading to operating deficits in many years, including the most recent two periods (202306 and 202206). For instance, in 202306, expenses were $8,012,867 against revenues of $6,872,880. This trend suggests a reliance on prior reserves or other funding sources to cover operational costs. The organization's assets have fluctuated but generally remained robust, with $7,359,101 in assets in 202306, indicating a solid financial base despite the operational deficits. However, liabilities have seen a significant increase in recent years, jumping from $652,947 in 202206 to $3,495,410 in 202306, which warrants closer examination.

Spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which is not provided in the summary data. However, the consistent operational deficits suggest that the organization is spending at or above its incoming revenue, which could impact long-term sustainability if not managed effectively. The absence of reported officer compensation across all filings is a notable aspect of their transparency, indicating either that no officers receive compensation or that it is reported in a way not captured by this summary. This could be a positive sign of resource allocation directly to mission, or it could indicate a lack of transparency if compensation is indeed being paid but not clearly disclosed.

Overall, Covenant House Washington DC appears to be a well-established organization with substantial assets, but its recurring operational deficits and recent surge in liabilities are areas of concern for financial health. Greater detail on spending categories would allow for a more precise evaluation of efficiency. The lack of reported officer compensation is a unique characteristic that could be interpreted as a strength in resource allocation, assuming it reflects actual practice.

View Full Transparency Report →

Disclaimer

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