Is Faith In Action Alabama Legit?

Red Flags

Inconsistent financial performance with significant year-over-year revenue and expense fluctuations.
Periods of substantial deficit spending, such as in 2023 where expenses exceeded revenue by over $330,000.
Lack of detailed functional expense breakdown (program, admin, fundraising) in the provided data, hindering full efficiency assessment.
Consistent 0% officer compensation, which is unusual for an organization of this scale and could indicate compensation is reported elsewhere or a unique leadership model.

Spending Breakdown

How Faith In Action Alabama 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 Faith In Action Alabama

Is Faith In Action Alabama a legitimate charity?

Based on AI analysis of IRS 990 filings, Faith In Action Alabama (EIN: 201667945) appears trustworthy. Mission Score: 75/100. 4 red flags identified, 4 strengths noted.

Is Faith In Action Alabama a good charity to donate to?

Faith In Action Alabama has a Mission Score of 75/100. Revenue: $647K. Assets: $794K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Faith In Action Alabama?

The Employer Identification Number (EIN) for Faith In Action Alabama is 201667945. 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 Faith In Action Alabama spend its money?

Faith In Action Alabama allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Faith In Action Alabama's tax-exempt status?

You can verify Faith In Action Alabama's tax-exempt status using EIN 201667945 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

Faith In Action Alabama demonstrates fluctuating financial health over the past decade. While the organization has seen significant revenue growth from $1,850 in 2014 to over $600,000 in recent years, its expenses have also varied widely, sometimes exceeding revenue, as seen in 2023 where expenses of $948,803 outstripped revenue of $616,899. This suggests periods of deficit spending, though it has also experienced substantial surpluses, such as in 2020 with $1,076,977 in revenue against $271,816 in expenses. The organization's assets have grown considerably, reaching $875,619 in 2023, indicating a build-up of financial reserves.

Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses from the provided data, a precise assessment is challenging. However, the consistent reporting of 0% officer compensation across all filings suggests a commitment to minimizing executive overhead, which is a positive indicator for efficiency. The organization's liabilities have remained very low, often at $0 or in the low thousands, which points to sound financial management in terms of debt.

In terms of transparency, the organization has a robust filing history with 13 IRS 990 filings, indicating consistent compliance with reporting requirements. The absence of officer compensation is a transparent and positive aspect. However, for a more complete transparency assessment, detailed functional expense breakdowns would be beneficial to understand how funds are allocated across programs, administration, and fundraising.

Verdict: Faith In Action Alabama appears trustworthy