Significant year-over-year revenue volatility (from $894,209 to $117,926).
Substantial operational deficit in 2023 ($117,926 revenue vs. $247,576 expenses).
Decrease in total assets from $474,363 in 2022 to $345,047 in 2023.
Strengths
Reported 0% officer compensation in both filings, indicating efficient use of funds or volunteer leadership.
Relatively low liabilities compared to assets, despite recent increases.
Spending Breakdown
How Ferndale Downtown Developmentassociation 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 Ferndale Downtown Developmentassociation
Is Ferndale Downtown Developmentassociation a legitimate charity?
Based on AI analysis of IRS 990 filings, Ferndale Downtown Developmentassociation (EIN: 208688675) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 2 strengths noted.
Is Ferndale Downtown Developmentassociation a good charity to donate to?
Ferndale Downtown Developmentassociation has a Mission Score of 65/100. Revenue: $141K. Assets: $339K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Ferndale Downtown Developmentassociation?
The Employer Identification Number (EIN) for Ferndale Downtown Developmentassociation is 208688675. 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 Ferndale Downtown Developmentassociation spend its money?
Ferndale Downtown Developmentassociation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Ferndale Downtown Developmentassociation's tax-exempt status?
You can verify Ferndale Downtown Developmentassociation's tax-exempt status using EIN 208688675 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
Ferndale Downtown Development Association demonstrates a mixed financial picture. While the organization reported zero officer compensation in both available filings, indicating good transparency regarding executive pay, its financial stability shows some volatility. In 2023, the organization experienced a significant deficit, with expenses of $247,576 far exceeding revenue of $117,926. This follows a much stronger 2022 where revenue of $894,209 significantly outpaced expenses of $420,208. The substantial drop in revenue from $894,209 in 2022 to $117,926 in 2023, coupled with a decrease in assets from $474,363 to $345,047 over the same period, raises concerns about the sustainability of its funding model and operational efficiency. The organization's liabilities also increased from $362 in 2022 to $480 in 2023, though still relatively low compared to assets.