Quick charity verification for Dance Educators Of America Inc (EIN: 133542480)
Verdict: Dance Educators Of America Inc shows mixed signals
55/100Mission Score
$946KRevenue
$47KAssets
4Red Flags
2Strengths
Red Flags
Consistent operating deficits in recent years (2021-2023), with expenses exceeding revenue.
Significant increase in liabilities from $0 in 2020 to $417,489 in 2023.
Substantial decline in assets from $113,422 in 2020 to $17,235 in 2023, indicating limited financial reserves.
High liabilities relative to assets, with liabilities being more than 24 times assets in 2023 ($417,489 vs. $17,235).
Strengths
Consistent reporting of 0% officer compensation, indicating resources are not being diverted to executive salaries.
Long filing history (13 filings), suggesting a commitment to IRS compliance and transparency.
Spending Breakdown
How Dance Educators Of America Inc allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
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 Dance Educators Of America Inc
Is Dance Educators Of America Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Dance Educators Of America Inc (EIN: 133542480) shows mixed signals. Mission Score: 55/100. 4 red flags identified, 2 strengths noted.
Is Dance Educators Of America Inc a good charity to donate to?
Dance Educators Of America Inc has a Mission Score of 55/100. Revenue: $946K. Assets: $47K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Dance Educators Of America Inc?
The Employer Identification Number (EIN) for Dance Educators Of America Inc is 133542480. 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 Dance Educators Of America Inc spend its money?
Dance Educators Of America Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Dance Educators Of America Inc's tax-exempt status?
You can verify Dance Educators Of America Inc's tax-exempt status using EIN 133542480 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
Dance Educators Of America Inc has experienced fluctuating financial performance over the past several years, with recent filings showing expenses exceeding revenue. In 2023, expenses were $1,062,906 against revenues of $976,391, resulting in a deficit. This trend of operating at a deficit is also observed in 2022 ($1,172,444 expenses vs. $1,097,446 revenue) and 2021 ($876,667 expenses vs. $524,504 revenue). The organization's assets have also seen a significant decline, from $113,422 in 2020 to $17,235 in 2023, while liabilities have substantially increased, reaching $417,489 in 2023. This indicates a concerning financial position with limited reserves and growing debt.
The organization's transparency regarding executive compensation is high, as officer compensation has consistently been reported as 0% across all available filings. However, the consistent operating deficits and the substantial increase in liabilities relative to assets raise questions about long-term financial sustainability and the efficiency of resource management. While the NTEE code A196 suggests a focus on performing arts education, the financial data points to a need for improved financial planning and expenditure control to ensure the organization's continued viability and mission delivery.