Quick charity verification for Fat Tire Foundation (EIN: 208066058)
Verdict: Fat Tire Foundation has notable concerns
30/100Mission Score
$79.0MRevenue
$86.6MAssets
4Red Flags
3Strengths
Red Flags
Extremely low reported expenses relative to substantial revenue and asset base, raising questions about direct charitable spending.
Consistent accumulation of assets without clear indication of how these funds are deployed for mission-related activities.
Lack of detailed expense breakdown (program, admin, fundraising) in the provided summary makes it impossible to assess spending efficiency.
Unusual financial pattern for a nonprofit, suggesting a primary focus on capital retention rather than immediate program disbursement.
Strengths
Strong financial solvency with minimal liabilities ($1 in recent years).
Significant asset base ($86.6 million) provides long-term financial stability.
Consistent revenue generation, with several years showing multi-million dollar inflows.
Spending Breakdown
How Fat Tire Foundation allocates its funds across programs, administration, and fundraising.
0%
Program Spending
Concerning — less than half to programs
0%
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 Fat Tire Foundation
Is Fat Tire Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Fat Tire Foundation (EIN: 208066058) has notable concerns. Mission Score: 30/100. 4 red flags identified, 3 strengths noted.
Is Fat Tire Foundation a good charity to donate to?
Fat Tire Foundation has a Mission Score of 30/100. Revenue: $79.0M. Assets: $86.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Fat Tire Foundation?
The Employer Identification Number (EIN) for Fat Tire Foundation is 208066058. 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 Fat Tire Foundation spend its money?
Fat Tire Foundation allocates 0% to programs, 0% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Fat Tire Foundation's tax-exempt status?
You can verify Fat Tire Foundation's tax-exempt status using EIN 208066058 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 Fat Tire Foundation exhibits a highly unusual financial profile, characterized by extremely low reported expenses relative to its substantial revenue and asset base. For instance, in 2023, the organization reported over $13.9 million in revenue but only $2.57 million in expenses, and in 2021, $32.8 million in revenue against $1.5 million in expenses. This pattern suggests that a significant portion of its revenue is not being spent on programs, administration, or fundraising in the same fiscal year, leading to a rapid accumulation of assets, which reached $86.6 million in the latest period. The consistent reporting of 'Officer Comp=0%' across all filings indicates either a fully volunteer-led executive team or that executive compensation is not being reported in a standard manner, which could impact transparency.
The organization's spending efficiency, based on the reported expenses, appears to be heavily skewed towards asset accumulation rather than direct programmatic spending or operational costs. Without a detailed breakdown of expenses (e.g., program service expenses vs. administrative and fundraising), it's challenging to fully assess efficiency. However, the vast discrepancy between revenue and expenses year after year raises questions about how the funds are being utilized and whether they are being held for future, undisclosed purposes. The minimal liabilities ($1 in recent years) suggest a very strong balance sheet, but also reinforce the idea that funds are not being actively deployed.
Transparency is a concern given the lack of reported executive compensation and the significant gap between revenue and expenses. While the organization files its IRS 990s, the financial data presented suggests a model where funds are primarily retained rather than disbursed. A clearer explanation of the organization's financial strategy and how its substantial assets contribute to its mission would enhance transparency.