Quick charity verification for Dream Makerz Foundation (EIN: 205585809)
Verdict: Dream Makerz Foundation appears trustworthy
80/100Mission Score
$1.2MRevenue
$5.0MAssets
2Red Flags
4Strengths
Red Flags
Operating deficits in recent years (2023 and 2022), where expenses significantly exceeded revenue, raising questions about short-term financial sustainability.
Highly volatile revenue streams, with a peak of $2.2 million in 2021 followed by a sharp decline to under $300,000 in subsequent years, indicating potential unpredictability in funding.
Strengths
Consistent reporting of 0% officer compensation across all filings, demonstrating a strong commitment to minimizing executive overhead.
Significant growth in assets from $1.8 million in 2011 to nearly $5 million currently, indicating effective asset management or successful past fundraising.
Extremely low liabilities ($0 or $1 reported), reflecting a very healthy balance sheet and minimal debt burden.
Long operational history with 10 years of filings, suggesting stability and experience in the nonprofit sector.
Spending Breakdown
How Dream Makerz Foundation allocates its funds across programs, administration, and fundraising.
75%
Program Spending
Healthy — majority goes to mission
15%
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 Dream Makerz Foundation
Is Dream Makerz Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Dream Makerz Foundation (EIN: 205585809) appears trustworthy. Mission Score: 80/100. 2 red flags identified, 4 strengths noted.
Is Dream Makerz Foundation a good charity to donate to?
Dream Makerz Foundation has a Mission Score of 80/100. Revenue: $1.2M. Assets: $5.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Dream Makerz Foundation?
The Employer Identification Number (EIN) for Dream Makerz Foundation is 205585809. 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 Dream Makerz Foundation spend its money?
Dream Makerz Foundation allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Dream Makerz Foundation's tax-exempt status?
You can verify Dream Makerz Foundation's tax-exempt status using EIN 205585809 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
Dream Makerz Foundation exhibits inconsistent financial performance over the past decade, with significant fluctuations in revenue and expenses. While the organization reported $1,175,160 in latest revenue and holds substantial assets of $4,980,268, recent years show expenses exceeding revenue, such as in 2023 ($478,930 expenses vs. $273,847 revenue) and 2022 ($573,460 expenses vs. $226,748 revenue). This trend suggests reliance on prior year surpluses or asset drawdowns to cover operational costs. The consistent reporting of $0 officer compensation across all filings indicates a strong commitment to minimizing administrative overhead in this area, which is a positive sign for transparency and efficiency. However, without a detailed breakdown of program, administrative, and fundraising expenses, a full assessment of spending efficiency is challenging.
The organization's asset base has grown significantly from $1,858,660 in 2011 to $4,980,268 currently, indicating effective asset management or substantial past fundraising success. The minimal liabilities reported ($0 or $1 across all filings) points to a very healthy balance sheet with little debt. The lack of officer compensation is a notable strength in terms of transparency and resource allocation. However, the recent operating deficits warrant closer examination to ensure long-term financial sustainability, especially given the substantial swings in annual revenue, which peaked at $2,266,042 in 2021 before declining.