Is Democracy Collaborative Foundation Inc Legit?

Quick charity verification for Democracy Collaborative Foundation Inc (EIN: 200387511)

Verdict: Democracy Collaborative Foundation Inc appears trustworthy

70/100Mission Score

$983KRevenue

$1.1MAssets

4Red Flags

4Strengths

Red Flags

Recurring operating deficits in multiple years (e.g., 2022, 2021, 2020, 2019, 2017, 2014)
Significant increase in liabilities over time, from $23,298 in 2014 to $1,438,483 in 2023
Volatile revenue and expense trends, indicating potential instability in funding or operations
Assets declined significantly from a peak of $6,073,428 in 2018 to $1,833,529 in 2022 before recovering to $2,723,363 in 2023

Strengths

Reported 0% officer compensation across all filings, indicating strong control over executive pay
Achieved a positive net income in 2023 ($1,409,246 surplus), reversing a trend of deficits
Substantial asset base of $2,723,363 in 2023, providing some financial cushion
History of attracting significant funding, with revenues exceeding $9 million in 2018

Spending Breakdown

How Democracy Collaborative Foundation Inc allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

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 Democracy Collaborative Foundation Inc

Is Democracy Collaborative Foundation Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Democracy Collaborative Foundation Inc (EIN: 200387511) appears trustworthy. Mission Score: 70/100. 4 red flags identified, 4 strengths noted.

Is Democracy Collaborative Foundation Inc a good charity to donate to?

Democracy Collaborative Foundation Inc has a Mission Score of 70/100. Revenue: $983K. Assets: $1.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Democracy Collaborative Foundation Inc?

The Employer Identification Number (EIN) for Democracy Collaborative Foundation Inc is 200387511. 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 Democracy Collaborative Foundation Inc spend its money?

Democracy Collaborative Foundation Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Democracy Collaborative Foundation Inc's tax-exempt status?

You can verify Democracy Collaborative Foundation Inc's tax-exempt status using EIN 200387511 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

The Democracy Collaborative Foundation Inc. demonstrates fluctuating financial health over the past decade. While the organization reported a positive net income in 2023 with revenues of $3,874,746 exceeding expenses of $2,465,500, this follows several years of significant operating deficits, such as in 2022 ($3,696,524 revenue vs. $3,853,561 expenses) and 2021 ($2,304,413 revenue vs. $4,122,672 expenses). The organization's assets have also shown considerable variability, peaking at $6,073,428 in 2018 and currently standing at $2,723,363 in 2023, indicating periods of substantial growth followed by contraction. The consistent reporting of 0% officer compensation across all available filings suggests a commitment to minimizing administrative overhead in this specific area, which is a positive indicator for transparency regarding executive pay.

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 recurring operating deficits in multiple years suggest that the organization has at times struggled to manage expenses within its revenue streams. The significant increase in liabilities from $23,298 in 2014 to $1,438,483 in 2023, with a peak of $2,229,447 in 2021, warrants closer examination as it indicates a growing reliance on debt or deferred obligations. The organization's ability to reverse its deficit trend in 2023 is a positive development, but sustained financial stability will depend on consistent revenue generation and expense management.

Transparency regarding executive compensation is strong, with 0% reported for officers across all filings. However, a complete picture of financial transparency would benefit from more granular expense data to evaluate the proportion of funds directly allocated to programmatic activities versus administrative and fundraising costs. The significant swings in revenue and expenses, along with the fluctuating asset and liability levels, suggest a dynamic financial environment that requires careful monitoring.

View Full Transparency Report →

Disclaimer

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