Is Embrace Legit?

Quick charity verification for Embrace (EIN: 208672968)

Verdict: Embrace appears trustworthy

75/100Mission Score

$2.8MRevenue

$2.6MAssets

3Red Flags

3Strengths

Red Flags

Expenses exceeded revenue in the last two fiscal periods (2023 and 2022), indicating operating deficits.
Significant increase in liabilities from $280,443 in 2022 to $921,872 in 2023, which could signal financial strain or new debt.
Revenue has declined from a peak of $4,707,157 in 2020 to $3,091,433 in 2023, while expenses have not decreased proportionally.

Strengths

Consistent reporting of 0% officer compensation across all filings, indicating a strong commitment to directing funds to mission.
Long operational history with 13 IRS 990 filings, demonstrating stability and experience.
Assets have shown overall growth over the past decade, from $757,596 in 2014 to $2,578,987 in 2023.

Spending Breakdown

How Embrace 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 Embrace

Is Embrace a legitimate charity?

Based on AI analysis of IRS 990 filings, Embrace (EIN: 208672968) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.

Is Embrace a good charity to donate to?

Embrace has a Mission Score of 75/100. Revenue: $2.8M. Assets: $2.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Embrace?

The Employer Identification Number (EIN) for Embrace is 208672968. 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 Embrace spend its money?

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

How can I verify Embrace's tax-exempt status?

You can verify Embrace's tax-exempt status using EIN 208672968 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

Embrace demonstrates a consistent operational history with 13 filings, indicating a stable presence. However, recent filings show a trend of expenses exceeding revenue. In fiscal year 2023, expenses were $3,265,732 against revenues of $3,091,433, and in 2022, expenses were $3,480,179 against revenues of $3,389,017. This suggests the organization is drawing down on reserves or relying on prior year surpluses. While assets have generally grown over time, reaching $2,578,987 in 2023, the increasing liabilities, particularly the jump to $921,872 in 2023 from $280,443 in 2022, warrant closer examination. The consistent reporting of 0% officer compensation across all filings is a positive indicator of financial transparency and a focus on mission-related spending rather than executive enrichment.

The organization's financial health appears to be under some pressure due to the recent operating deficits. While the NTEE code F30 (Mental Health & Crisis Intervention) suggests a strong program focus, without a detailed breakdown of expenses, it's challenging to fully assess spending efficiency. The significant increase in liabilities in the latest period is a concern that could impact future financial stability. Despite these challenges, the long filing history and zero reported officer compensation are positive aspects regarding transparency and commitment to mission.

To fully assess spending efficiency, a detailed breakdown of program, administrative, and fundraising expenses would be necessary. The current data suggests a need for the organization to address its operating deficits to ensure long-term sustainability. The growth in assets over the past decade, from $757,596 in 2014 to $2,578,987 in 2023, indicates some financial growth, but the recent increase in liabilities needs to be monitored.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.