Is Economic Development Growth Enterprises Corporation Legit?
Quick charity verification for Economic Development Growth Enterprises Corporation (EIN: 160874637)
Verdict: Economic Development Growth Enterprises Corporation shows mixed signals
65/100Mission Score
$11.0MRevenue
$50.4MAssets
4Red Flags
3Strengths
Red Flags
Consistent reporting of 0% officer compensation, which lacks transparency regarding executive remuneration for an organization of this size.
Frequent instances of expenses exceeding revenue in recent years (e.g., 2023, 2022, 2021), which could indicate operational deficits or reliance on reserves.
Significant fluctuations in annual revenue, indicating potential instability in funding sources or a highly project-dependent model.
High liabilities relative to assets in some periods (e.g., $25.6M liabilities vs. $51.6M assets in 2018), suggesting substantial debt or financial obligations.
Strengths
Substantial asset base, with assets consistently over $30 million and reaching $40.5 million in 2023, indicating significant resources.
Long filing history (13 filings), suggesting established operations and compliance with IRS reporting requirements.
Demonstrated ability to manage and deploy significant capital for economic development initiatives, as evidenced by large revenue and expense figures in peak years.
Spending Breakdown
How Economic Development Growth Enterprises Corporation allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
5%
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 Economic Development Growth Enterprises Corporation
Is Economic Development Growth Enterprises Corporation a legitimate charity?
Based on AI analysis of IRS 990 filings, Economic Development Growth Enterprises Corporation (EIN: 160874637) shows mixed signals. Mission Score: 65/100. 4 red flags identified, 3 strengths noted.
Is Economic Development Growth Enterprises Corporation a good charity to donate to?
Economic Development Growth Enterprises Corporation has a Mission Score of 65/100. Revenue: $11.0M. Assets: $50.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Economic Development Growth Enterprises Corporation?
The Employer Identification Number (EIN) for Economic Development Growth Enterprises Corporation is 160874637. 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 Economic Development Growth Enterprises Corporation spend its money?
Economic Development Growth Enterprises Corporation allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Economic Development Growth Enterprises Corporation's tax-exempt status?
You can verify Economic Development Growth Enterprises Corporation's tax-exempt status using EIN 160874637 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
Economic Development Growth Enterprises Corporation (EDGE) demonstrates a consistent operational pattern, with expenses frequently exceeding revenue in recent years, as seen in 2023 ($8.3M expenses vs. $8.1M revenue) and 2022 ($5.99M expenses vs. $5.94M revenue). While this could indicate strategic investment or timing differences in funding, a sustained trend warrants closer examination. The organization's assets have shown growth, reaching over $50 million in 2018 and currently standing at $40.5 million in 2023, indicating a substantial resource base. However, liabilities have also been significant, peaking at $25.6 million in 2018 and remaining at $13.2 million in 2023, suggesting reliance on debt or specific project financing.
A notable aspect of EDGE's financial structure is the reported 0% officer compensation across all available filings. This suggests that executive leadership may be compensated through other means not categorized as 'officer compensation' on the 990, or that leadership is entirely volunteer-based, which would be highly unusual for an organization of this scale and asset base. This lack of reported compensation impacts transparency regarding how leadership is remunerated. The organization's revenue has fluctuated significantly over the years, from a high of $35.3 million in 2016 to $3.6 million in 2021, and then rebounding to $8.1 million in 2023, indicating a project-based or grant-dependent funding model.