Is Ethics Resource Center Inc Legit?

Quick charity verification for Ethics Resource Center Inc (EIN: 131671026)

Verdict: Ethics Resource Center Inc shows mixed signals

65/100Mission Score

$1.8MRevenue

$1.9MAssets

3Red Flags

3Strengths

Red Flags

Recurring operating deficits: Expenses exceeded revenue in 2023, 2022, and 2020, indicating potential financial strain.
Significant increase in liabilities: Liabilities rose from $373,076 in 2021 to $1,447,187 in 2023, which could signal increased financial obligations.
Unusually low (0%) reported officer compensation: This is atypical for an organization with over $1 million in annual revenue and may obscure actual executive remuneration if paid by a related entity.

Strengths

Long filing history: 14 years of IRS 990 filings provide extensive historical financial data for analysis.
Periods of strong revenue generation: The organization has demonstrated capacity for significant revenue, such as $2,796,560 in 2021.
Substantial asset base: Despite fluctuations, the organization maintains a significant asset base, with $2,966,206 in 2023, providing some financial cushion.

Spending Breakdown

How Ethics Resource Center Inc 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 Ethics Resource Center Inc

Is Ethics Resource Center Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Ethics Resource Center Inc (EIN: 131671026) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.

Is Ethics Resource Center Inc a good charity to donate to?

Ethics Resource Center Inc has a Mission Score of 65/100. Revenue: $1.8M. Assets: $1.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Ethics Resource Center Inc?

The Employer Identification Number (EIN) for Ethics Resource Center Inc is 131671026. 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 Ethics Resource Center Inc spend its money?

Ethics Resource Center Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Ethics Resource Center Inc's tax-exempt status?

You can verify Ethics Resource Center Inc's tax-exempt status using EIN 131671026 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

Ethics Resource Center Inc. demonstrates a fluctuating financial health over the past several years. In 2023, the organization reported expenses of $2,571,795 against revenues of $1,519,723, indicating a significant operating deficit. This trend of expenses exceeding revenue is also observed in 2022 ($1,943,595 expenses vs. $1,676,410 revenue) and 2020 ($1,873,603 expenses vs. $1,481,545 revenue), suggesting a potential reliance on reserves or other funding sources to cover operational costs. However, there have been periods of surplus, such as in 2021 where revenue ($2,796,560) significantly outpaced expenses ($1,570,307), contributing to asset growth.

The organization's asset base has shown considerable variability, peaking at $4,216,763 in 2022 before declining to $2,966,206 in 2023. Liabilities have also increased in recent years, reaching $1,447,187 in 2023, which is a notable rise from $373,076 in 2021. The consistent reporting of 0% officer compensation across all available filings suggests a commitment to minimizing administrative overhead in this specific area, which is a positive indicator for spending efficiency. However, without a detailed breakdown of program, administrative, and fundraising expenses, a comprehensive assessment of spending efficiency is challenging.

Transparency appears to be adequate given the availability of 14 years of IRS 990 filings. The consistent reporting of key financial metrics allows for historical analysis. The absence of reported officer compensation is a strong point for transparency regarding executive pay. To further enhance transparency and allow for a more precise evaluation of spending efficiency, a detailed breakdown of functional expenses would be beneficial.

View Full Transparency Report →

Disclaimer

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