Is Entertainment Software Association…

Quick charity verification for Entertainment Software Association (EIN: 133768378)

Spending Breakdown

How Entertainment Software Association 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 Entertainment Software Association

Is Entertainment Software Association a legitimate charity?

Based on AI analysis of IRS 990 filings, Entertainment Software Association (EIN: 133768378) appears trustworthy. Mission Score: 70/100. 2 red flags identified, 4 strengths noted.

Is Entertainment Software Association a good charity to donate to?

Entertainment Software Association has a Mission Score of 70/100. Revenue: $78.5M. Assets: $59.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Entertainment Software Association?

The Employer Identification Number (EIN) for Entertainment Software Association is 133768378. 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 Entertainment Software Association spend its money?

Entertainment Software Association allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Entertainment Software Association's tax-exempt status?

You can verify Entertainment Software Association's tax-exempt status using EIN 133768378 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 Entertainment Software Association (ESA) demonstrates a generally stable financial position, with assets consistently exceeding liabilities across its filing history. For instance, in the 202303 period, assets were $48,093,920 against liabilities of $16,186,610, indicating a healthy balance sheet. The organization has shown consistent revenue generation, averaging around $35-40 million annually, with a notable increase in its latest reported revenue to $78,511,260, suggesting significant growth or a change in reporting. Expense management appears prudent, with expenses generally tracking closely to revenue, leading to modest surpluses or deficits in most years, such as the $5,230,074 surplus in 202303 ($38,588,407 revenue - $33,358,333 expenses).

However, a key area for further scrutiny is the lack of detailed spending breakdown in the provided data, making it challenging to fully assess spending efficiency across programs, administration, and fundraising. The consistent reporting of 0% for officer compensation across all filings is unusual for an organization of this size and revenue, which could indicate that executive compensation is reported under other expense categories or that the organization's leadership structure is compensated differently, warranting further investigation for full transparency. Without a clear breakdown of program service expenses versus administrative and fundraising costs, a definitive assessment of spending efficiency is limited.

Overall, the ESA appears financially sound with a strong asset base and consistent revenue. The primary area for improvement in transparency would be a more explicit disclosure of executive compensation and a detailed functional expense breakdown to allow for a clearer understanding of how funds are allocated to its mission-related activities versus overhead. The significant jump in 'Latest Revenue' to $78,511,260 compared to the historical annual revenues also warrants clarification to understand its source and impact on the organization's financial strategy.

Is Entertainment Software Association Legit?

Verdict: Entertainment Software Association appears trustworthy

Red Flags

Strengths