Quick charity verification for First Founders Assurance Company (EIN: 201384826)
Verdict: First Founders Assurance Company appears trustworthy
92/100Mission Score
$1.4MRevenue
$7.9MAssets
2Red Flags
5Strengths
Red Flags
Unusually low reported expenses relative to revenue, potentially indicating underreporting or a highly specialized, low-overhead operational model that warrants further investigation.
0% officer compensation across all filings for an organization with significant assets and revenue, which is atypical and could suggest alternative compensation structures not captured or a fully volunteer-run executive team.
Strengths
Consistent financial surplus, with revenues regularly exceeding expenses (e.g., $562,255 revenue vs. $292,635 expenses in 2023).
Strong asset growth, increasing from $4,692,988 in 2014 to $7,897,620 in 2023.
No reported officer compensation, indicating a highly efficient use of funds and potentially a volunteer-driven leadership.
Long history of consistent IRS 990 filings (13 filings), demonstrating strong transparency and compliance.
Healthy asset-to-liability ratio, with assets of $7,897,620 significantly exceeding liabilities of $1,747,737 in 2023.
Spending Breakdown
How First Founders Assurance Company allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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 First Founders Assurance Company
Is First Founders Assurance Company a legitimate charity?
Based on AI analysis of IRS 990 filings, First Founders Assurance Company (EIN: 201384826) appears trustworthy. Mission Score: 92/100. 2 red flags identified, 5 strengths noted.
Is First Founders Assurance Company a good charity to donate to?
First Founders Assurance Company has a Mission Score of 92/100. Revenue: $1.4M. Assets: $7.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for First Founders Assurance Company?
The Employer Identification Number (EIN) for First Founders Assurance Company is 201384826. 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 First Founders Assurance Company spend its money?
First Founders Assurance Company allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify First Founders Assurance Company's tax-exempt status?
You can verify First Founders Assurance Company's tax-exempt status using EIN 201384826 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
First Founders Assurance Company demonstrates consistent financial stability with steadily growing assets, reaching $7,897,620 in 2023. The organization consistently maintains a healthy surplus, with revenues generally exceeding expenses across the reported periods. For instance, in 2023, revenue was $562,255 against expenses of $292,635, indicating strong financial management and an ability to build reserves.
The organization's spending efficiency appears robust, as evidenced by its consistent ability to operate within its means and grow its asset base. The absence of reported officer compensation across all filings suggests a high degree of volunteerism or a structure where executive roles are not compensated, which can contribute to lower administrative overhead. This practice enhances the organization's financial health by directing more resources towards its mission.
Transparency is strong given the consistent filing of IRS Form 990s over 13 periods, providing a clear historical financial record. The consistent growth in assets and the positive revenue-to-expense ratio across multiple years indicate a well-managed and financially prudent organization. The lack of officer compensation further boosts confidence in its operational integrity and commitment to its stated purpose.