Quick charity verification for Erath Family Foundation (EIN: 205237609)
Verdict: Erath Family Foundation appears trustworthy
85/100Mission Score
$1.5MRevenue
$4.8MAssets
1Red Flags
4Strengths
Red Flags
Lack of detailed expense breakdown (program vs. admin vs. fundraising) in provided data makes efficiency analysis challenging.
Strengths
Consistent reporting of 0% officer compensation across all filings.
Extremely low liabilities ($1 consistently) indicating strong financial health and no debt.
Consistent growth in assets over the long term, from $3,080,979 in 2011 to $3,455,519 in 2023.
Regular IRS 990 filing history (10 filings) demonstrates commitment to transparency.
Spending Breakdown
How Erath Family Foundation allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
0%
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 Erath Family Foundation
Is Erath Family Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Erath Family Foundation (EIN: 205237609) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Erath Family Foundation a good charity to donate to?
Erath Family Foundation has a Mission Score of 85/100. Revenue: $1.5M. Assets: $4.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Erath Family Foundation?
The Employer Identification Number (EIN) for Erath Family Foundation is 205237609. 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 Erath Family Foundation spend its money?
Erath Family Foundation allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Erath Family Foundation's tax-exempt status?
You can verify Erath Family Foundation's tax-exempt status using EIN 205237609 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 Erath Family Foundation demonstrates consistent financial stability with assets growing from $3,080,979 in 2011 to $3,455,519 in 2023, despite fluctuations in annual revenue and expenses. The organization's liabilities have consistently remained at a nominal $1 across all reported periods, indicating a very strong balance sheet and minimal financial risk. While the latest reported revenue is $1,469,127, the individual filing periods show much lower figures, suggesting the latest revenue figure might be a cumulative or a different reporting metric than the annual filing data provided.
Spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses. However, the consistent reporting of 0% officer compensation across all filings is a significant positive indicator of efficient use of funds, as it suggests that leadership is either unpaid or compensated through other means not classified as officer compensation, which is common for family foundations. The foundation's NTEE code T22 (Private Grantmaking Foundations) implies its primary activity is making grants, which inherently focuses on program delivery.
Transparency appears to be good, with 10 years of consistent IRS 990 filings available. The lack of officer compensation is a strong point for transparency regarding executive pay. To further enhance transparency, a detailed breakdown of how expenses are allocated between grants (programs), administrative overhead, and any fundraising activities would be beneficial for external stakeholders.