Low asset base relative to annual revenue, limiting financial reserves (e.g., $242,557 assets vs. $3.5M+ revenue in 2023)
NTEE code is unknown, which limits understanding of its specific programmatic focus.
Strengths
High utilization of funds, with expenses closely tracking revenue across all periods (e.g., $3,582,408 revenue vs. $3,521,037 expenses in 2023).
Consistent reporting of 0% officer compensation, indicating low executive overhead.
Absence of reported liabilities in recent years ($0 in 2023 and 2018), suggesting good debt management.
Consistent filing of IRS Form 990s, demonstrating transparency in financial reporting.
Spending Breakdown
How Covenant Mercy Mission Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
7%
Admin Costs
Reasonable — admin costs in check
3%
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 Mercy Mission Inc
Is Covenant Mercy Mission Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Covenant Mercy Mission Inc (EIN: 135604698) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is Covenant Mercy Mission Inc a good charity to donate to?
Covenant Mercy Mission Inc has a Mission Score of 85/100. Revenue: $3.8M. Assets: $166K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Covenant Mercy Mission Inc?
The Employer Identification Number (EIN) for Covenant Mercy Mission Inc is 135604698. 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 Mercy Mission Inc spend its money?
Covenant Mercy Mission Inc allocates 90% to programs, 7% to administration, and 3% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Covenant Mercy Mission Inc's tax-exempt status?
You can verify Covenant Mercy Mission Inc's tax-exempt status using EIN 135604698 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 Mercy Mission Inc demonstrates a consistent operational pattern of spending nearly all of its revenue on an annual basis, as evidenced by its expenses closely tracking revenue across all seven reported periods. For instance, in 2023, revenue was $3,582,408 and expenses were $3,521,037, indicating a high utilization of funds for its stated mission. The organization maintains relatively low asset levels compared to its annual revenue, with assets of $242,557 in 2023 against over $3.5 million in revenue, suggesting a 'pass-through' model where funds are quickly deployed rather than accumulated. This approach, while efficient in fund deployment, also means the organization has limited reserves for unexpected events.
The organization's spending efficiency appears high given the tight correlation between revenue and expenses. The consistent reporting of 0% officer compensation across all filings indicates that executive leadership is either unpaid or compensated through non-reportable means, which is a significant factor in its operational cost structure. However, without a detailed breakdown of program, administrative, and fundraising expenses, a precise assessment of spending efficiency is challenging. The lack of reported liabilities in recent years (e.g., $0 in 2023 and 2018) suggests sound financial management regarding debt.
Transparency is generally good through its consistent filing of IRS Form 990s. However, the NTEE code being 'Unknown' and the absence of detailed spending breakdowns in the provided data limit a deeper analysis of its programmatic focus and efficiency. The organization's financial health appears stable, operating near break-even annually, but its minimal asset base could be a vulnerability in times of revenue fluctuation.