Quick charity verification for Elster Foundation (EIN: 166054742)
Verdict: Elster Foundation shows mixed signals
65/100Mission Score
$1.0MRevenue
$4.0MAssets
3Red Flags
3Strengths
Red Flags
Consistent operating deficits: Expenses have exceeded revenue in most recent years (e.g., 2021-2023), leading to asset depletion.
Declining asset base: Assets have decreased from $5,870,229 in 2013 to $4,004,970 in 2023, indicating unsustainable spending relative to income.
Lack of detailed functional expense breakdown in provided data, making it difficult to assess program efficiency accurately.
Strengths
Strong asset base: Despite declines, the foundation still holds nearly $4 million in assets, providing a significant financial buffer.
Consistent IRS 990 filing history: 10 filings demonstrate a commitment to transparency.
No reported officer compensation: Suggests a lean executive structure or volunteer leadership, potentially reducing administrative overhead.
Spending Breakdown
How Elster Foundation allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
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 Elster Foundation
Is Elster Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Elster Foundation (EIN: 166054742) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
Is Elster Foundation a good charity to donate to?
Elster Foundation has a Mission Score of 65/100. Revenue: $1.0M. Assets: $4.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Elster Foundation?
The Employer Identification Number (EIN) for Elster Foundation is 166054742. 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 Elster Foundation spend its money?
Elster Foundation allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Elster Foundation's tax-exempt status?
You can verify Elster Foundation's tax-exempt status using EIN 166054742 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 Elster Foundation demonstrates consistent financial transparency through its regular IRS 990 filings, with 10 filings available. However, the organization has shown a trend of spending exceeding revenue in recent years, particularly from 2021 to 2023. For example, in 2023, expenses were $382,292 against revenues of $238,207, and in 2022, expenses were $405,173 against revenues of $189,681. This consistent deficit spending has led to a gradual decline in assets, from $5,870,229 in 2013 to $4,004,970 in 2023. While the foundation maintains substantial assets, this pattern of drawing down its endowment to cover operational costs is a key financial health indicator to monitor.
The organization's spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which is not provided in the summary data. However, the absence of reported officer compensation (0% in all filings) suggests a lean operational structure at the executive level. The foundation's ability to sustain its mission long-term will depend on either increasing its revenue streams or adjusting its spending to align more closely with its income, to prevent further erosion of its asset base.
Overall, the Elster Foundation appears transparent in its reporting, but its financial sustainability is a concern due to persistent operating deficits. The significant asset base provides a buffer, but the trend of declining assets due to expenses consistently outpacing revenue warrants attention. Further analysis of the functional expense breakdown would provide a clearer picture of spending efficiency.