Quick charity verification for Derry Rotary Educational Fund Inc (EIN: 20501434)
Verdict: Derry Rotary Educational Fund Inc appears trustworthy
90/100Mission Score
$19KRevenue
$236KAssets
1Red Flags
5Strengths
Red Flags
Significant expense spike in 202302 ($43,294) relative to revenue ($4) for that period, warranting further detail on its nature.
Strengths
Consistent zero officer compensation, indicating a volunteer-driven model.
Strong and growing asset base ($236,030 currently, up from $156,924 in 201302).
Generally low operating expenses, suggesting high spending efficiency.
Consistent IRS 990 filings, demonstrating good transparency.
Zero liabilities reported across all available filings, indicating strong financial health.
Spending Breakdown
How Derry Rotary Educational Fund Inc allocates its funds across programs, administration, and fundraising.
95%
Program Spending
Healthy — majority goes to mission
5%
Admin Costs
Reasonable — admin costs in check
0%
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 Derry Rotary Educational Fund Inc
Is Derry Rotary Educational Fund Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Derry Rotary Educational Fund Inc (EIN: 20501434) appears trustworthy. Mission Score: 90/100. 1 red flag identified, 5 strengths noted.
Is Derry Rotary Educational Fund Inc a good charity to donate to?
Derry Rotary Educational Fund Inc has a Mission Score of 90/100. Revenue: $19K. Assets: $236K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Derry Rotary Educational Fund Inc?
The Employer Identification Number (EIN) for Derry Rotary Educational Fund Inc is 20501434. 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 Derry Rotary Educational Fund Inc spend its money?
Derry Rotary Educational Fund Inc allocates 95% to programs, 5% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Derry Rotary Educational Fund Inc's tax-exempt status?
You can verify Derry Rotary Educational Fund Inc's tax-exempt status using EIN 20501434 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 Derry Rotary Educational Fund Inc demonstrates consistent financial health, primarily operating as a scholarship fund with a strong asset base relative to its annual revenue and expenses. Over the past several years, the organization has maintained assets well over $200,000, reaching $236,030 in its latest filing. Its revenue streams fluctuate, with a notable dip to $4 in 202302, but generally range from $18,000 to $42,000 annually. Expenses are typically low, often under $10,000, indicating efficient operations, though there was an outlier expense of $43,294 in 202302, which significantly exceeded revenue for that period. The organization consistently reports zero liabilities and zero officer compensation, which are strong indicators of financial stability and a volunteer-driven model.
The organization's spending efficiency appears high, given its low reported expenses in most years. The absence of officer compensation suggests that administrative costs are minimal and likely covered by volunteers, allowing a greater proportion of funds to be directed towards its educational mission. The significant expense in 202302, while unusual, would warrant further investigation to understand its nature, but it does not appear to be a recurring pattern. The consistent growth in assets over the long term, from $156,924 in 201302 to $236,030 currently, further underscores its financial prudence and ability to build reserves.
Transparency is excellent, as evidenced by the consistent filing of IRS Form 990s and the clear reporting of zero liabilities and zero officer compensation. This level of detail allows for a straightforward assessment of its financial operations. The organization's focus on educational funding, combined with its lean operational structure, positions it as a financially sound and transparent entity dedicated to its stated purpose.