Quick charity verification for Fayette Alliance Inc (EIN: 204827646)
Verdict: Fayette Alliance Inc shows mixed signals
45/100Mission Score
$143Revenue
$103KAssets
4Red Flags
3Strengths
Red Flags
Drastic decline in revenue from $466,069 in 2014 to $143 in the latest period, indicating severe financial instability.
Significant reduction in assets from a peak of $365,758 in 2017 to $113,633 in 2023, eroding financial reserves.
Extremely low expenses in recent years (e.g., $1,125 in 2023) compared to historical spending, suggesting minimal program activity.
Potential for dormancy or very limited operational capacity due to sustained low financial activity.
Strengths
Consistent reporting of 0% officer compensation, demonstrating a commitment to minimizing executive overhead.
No reported liabilities in most recent filings, indicating a clean balance sheet in terms of debt.
Consistent IRS 990 filing history, suggesting adherence to transparency requirements.
Spending Breakdown
How Fayette Alliance Inc allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
5%
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 Fayette Alliance Inc
Is Fayette Alliance Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Fayette Alliance Inc (EIN: 204827646) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 3 strengths noted.
Is Fayette Alliance Inc a good charity to donate to?
Fayette Alliance Inc has a Mission Score of 45/100. Revenue: $143. Assets: $103K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Fayette Alliance Inc?
The Employer Identification Number (EIN) for Fayette Alliance Inc is 204827646. 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 Fayette Alliance Inc spend its money?
Fayette Alliance Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Fayette Alliance Inc's tax-exempt status?
You can verify Fayette Alliance Inc's tax-exempt status using EIN 204827646 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
Fayette Alliance Inc. exhibits a concerning trend of declining revenue and increasing financial instability over the past several years, particularly when examining the period from 2014 to 2020. While recent filings (2021-2023) show very low expenses relative to revenue, the overall financial picture is one of significant contraction. The organization's assets have also seen a substantial decrease from a high of $365,758 in 2017 to $113,633 in 2023, indicating a significant reduction in its financial capacity. The extremely low revenue in recent years, such as $143 in the latest period and $257 in 2020, suggests a potential dormancy or a drastic change in operational scale.
The organization's spending efficiency is difficult to assess accurately with the provided data, as detailed expense breakdowns are not available. However, the very low expenses in recent years (e.g., $1,125 in 2023, $388 in 2022) compared to historical spending (e.g., $444,913 in 2015) indicate a significant reduction in program activity or a shift to an almost entirely volunteer-run model. The consistent reporting of 0% officer compensation across all filings suggests a strong commitment to minimizing administrative overhead, at least in terms of executive salaries. However, the overall financial trajectory raises questions about the organization's long-term viability and impact.
Transparency appears to be maintained through consistent IRS 990 filings, with no reported liabilities in most recent years, which is a positive sign. The lack of officer compensation is also a strong indicator of financial prudence in that specific area. However, the dramatic fluctuations in revenue and expenses, coupled with the significant decline in assets, warrant further investigation to understand the underlying causes and the current operational status of Fayette Alliance Inc. The organization's ability to sustain its mission with such minimal recent revenue is a primary concern.