Quick charity verification for Draney Family Foundation (EIN: 202654475)
Verdict: Draney Family Foundation appears trustworthy
75/100Mission Score
$167KRevenue
$762KAssets
2Red Flags
3Strengths
Red Flags
Consistent deficit spending, with expenses exceeding revenue in most reported periods (e.g., $133,370 expenses vs. $103,047 revenue in 2022).
Significant decline in assets over time, from $1,181,240 in 2011 to $761,807 in 2022, indicating a draw-down of capital.
Strengths
Consistent 0% officer compensation, indicating high efficiency and dedication from leadership.
Regular and consistent IRS 990 filing history, demonstrating good transparency.
Clear focus as a private grantmaking foundation, suggesting direct support to other charitable causes.
Spending Breakdown
How Draney Family Foundation allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
15%
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 Draney Family Foundation
Is Draney Family Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Draney Family Foundation (EIN: 202654475) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is Draney Family Foundation a good charity to donate to?
Draney Family Foundation has a Mission Score of 75/100. Revenue: $167K. Assets: $762K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Draney Family Foundation?
The Employer Identification Number (EIN) for Draney Family Foundation is 202654475. 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 Draney Family Foundation spend its money?
Draney Family Foundation allocates 85% to programs, 15% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Draney Family Foundation's tax-exempt status?
You can verify Draney Family Foundation's tax-exempt status using EIN 202654475 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 Draney Family Foundation appears to be a private foundation primarily focused on grantmaking, as indicated by its NTEE code T22 (Private Grantmaking Foundations). Over the past several years, the foundation has consistently spent more than its revenue, drawing down its assets. For example, in 2022, it reported $103,047 in revenue against $133,370 in expenses, and in 2021, $135,212 in revenue against $149,508 in expenses. This trend has led to a decrease in assets from $1,181,240 in 2011 to $761,807 in 2022.
The foundation demonstrates good financial transparency by consistently filing its IRS Form 990s. A notable positive is the consistent reporting of 0% officer compensation across all available filings, suggesting that the foundation's leadership is unpaid, which is a strong indicator of efficiency and dedication to its mission. However, without a detailed breakdown of expenses beyond total expenses, it's challenging to fully assess spending efficiency between program, administrative, and fundraising costs, though private foundations typically have lower fundraising costs.
The consistent deficit spending, while potentially part of a planned spend-down strategy, warrants attention. While assets are still substantial at $761,807, the long-term sustainability of its grantmaking activities at current spending levels is a consideration if revenue generation does not increase or expenses are not adjusted. The foundation's liabilities have also increased from $1 in earlier years to $50,000 in recent years, which is a minor but notable change.