Is Drake House Inc Legit?

Strengths

Strong program spending ratio, consistently above 75% of total expenses (e.g., 80% in 2023).
Consistent revenue growth over the past decade, from $970,773 in 2014 to $3,019,791 in 2023.
Significant asset growth, increasing from $2,046,674 in 2014 to $6,637,090 in 2023.
No reported officer compensation across all filings, indicating highly efficient use of funds for leadership or volunteer-led governance.
Healthy financial reserves with assets significantly exceeding liabilities.

Spending Breakdown

How Drake House 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 Drake House Inc

Is Drake House Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Drake House Inc (EIN: 200943038) appears trustworthy. Mission Score: 92/100. 1 red flag identified, 5 strengths noted.

Is Drake House Inc a good charity to donate to?

Drake House Inc has a Mission Score of 92/100. Revenue: $2.7M. Assets: $6.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Drake House Inc?

The Employer Identification Number (EIN) for Drake House Inc is 200943038. 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 Drake House Inc spend its money?

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

How can I verify Drake House Inc's tax-exempt status?

You can verify Drake House Inc's tax-exempt status using EIN 200943038 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

Drake House Inc demonstrates a consistent pattern of strong financial health and program focus based on its IRS 990 filings. Over the past decade, the organization has shown steady growth in both revenue and assets, with revenue increasing from $970,773 in 2014 to $3,019,791 in 2023, and assets growing from $2,046,674 to $6,637,090 in the same period. This indicates effective fundraising and asset management. The organization consistently spends a high proportion of its expenses on program services, as evidenced by the 2023 filing where program service expenses were $2,017,785 out of total expenses of $2,522,231, representing approximately 80% of total spending.

The organization's spending efficiency is commendable, with program spending consistently above 75% of total expenses across multiple years. For instance, in 2023, program service expenses were $2,017,785, management and general expenses were $378,335, and fundraising expenses were $126,111. This allocation suggests a strong commitment to its mission. Transparency is also a strength, as the filings consistently report 0% officer compensation, which is a notable indicator of volunteer leadership or very low executive pay, further enhancing donor confidence.

While liabilities have fluctuated, they remain manageable relative to assets, with the highest reported liability being $1,034,767 in 2017 against assets of $3,804,790, and more recently $572,140 in 2023 against assets of $6,637,090. The overall trend points to a well-managed and financially stable organization effectively utilizing its resources to achieve its programmatic goals.

Verdict: Drake House Inc appears trustworthy

Red Flags