Is Credit Builders Alliance Inc Legit? —…

Quick charity verification for Credit Builders Alliance Inc (EIN: 208351782)

Strengths

Strong and consistent revenue growth, increasing from $966,367 in 2014 to $4,747,116 in 2023.
Healthy asset accumulation, growing from $567,526 in 2014 to $8,538,896 in 2023, indicating financial stability.
Consistent positive net income (revenue exceeding expenses) in most years, demonstrating sound financial management and ability to build reserves.
Low liabilities relative to assets, suggesting a strong balance sheet and limited financial risk (e.g., $3,018,311 liabilities vs. $8,538,896 assets in 2023).

Spending Breakdown

How Credit Builders Alliance Inc allocates its funds across programs, administration, and fundraising.

85%

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 Credit Builders Alliance Inc

Is Credit Builders Alliance Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Credit Builders Alliance Inc (EIN: 208351782) appears trustworthy. Mission Score: 88/100. 1 red flag identified, 4 strengths noted.

Is Credit Builders Alliance Inc a good charity to donate to?

Credit Builders Alliance Inc has a Mission Score of 88/100. Revenue: $9.4M. Assets: $8.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Credit Builders Alliance Inc?

The Employer Identification Number (EIN) for Credit Builders Alliance Inc is 208351782. 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 Credit Builders Alliance Inc spend its money?

Credit Builders Alliance Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Credit Builders Alliance Inc's tax-exempt status?

You can verify Credit Builders Alliance Inc's tax-exempt status using EIN 208351782 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

Credit Builders Alliance Inc. demonstrates a strong financial position with consistent growth in revenue and assets over the past decade. The organization's latest reported revenue is $9,428,687, with assets of $8,552,319, indicating a healthy balance sheet. Their financial filings show a positive trend, with revenue increasing significantly from $966,367 in 2014 to $4,747,116 in 2023, and assets growing from $567,526 to $8,538,896 in the same period. This growth suggests effective fundraising and financial management.

The organization consistently spends a high proportion of its expenses on program services, as evidenced by the healthy surplus in most years (e.g., $4,747,116 revenue vs. $4,460,136 expenses in 2023, and $5,600,497 revenue vs. $3,367,261 expenses in 2022). The consistent reporting of 0% officer compensation across all available filings is a notable indicator of transparency and potentially efficient use of funds, as it suggests that top executives are not drawing salaries directly from the organization's reported officer compensation line item, or that compensation is structured differently. This practice, while potentially positive, warrants further investigation to understand the full compensation structure.

Overall, Credit Builders Alliance Inc. appears to be a financially sound and efficient organization. Their consistent growth, strong asset base, and apparent focus on program spending, coupled with the reported lack of officer compensation, paint a picture of a well-managed nonprofit. However, without a detailed breakdown of program, administrative, and fundraising expenses, a precise assessment of spending efficiency is limited. The consistent surplus in recent years also suggests good financial planning and the ability to build reserves.

Is Credit Builders Alliance Inc Legit?

Verdict: Credit Builders Alliance Inc appears trustworthy

Red Flags