Quick charity verification for First Step Foundation (EIN: 201876745)
Verdict: First Step Foundation shows mixed signals
65/100Mission Score
$71KRevenue
$1.1MAssets
3Red Flags
3Strengths
Red Flags
Highly inconsistent and often extremely low reported expenses relative to revenue, particularly the $475 expense against $1,010,446 revenue in 202306.
Significant year-over-year revenue volatility, making financial planning and operational stability difficult to assess.
Lack of clarity on how substantial assets are being deployed for programmatic purposes given minimal reported expenses.
Strengths
Strong asset base of $1,126,221 with no reported liabilities, indicating excellent financial solvency.
Consistent reporting of 0% officer compensation, suggesting a volunteer-driven leadership and low executive overhead.
Potential for significant program expansion or long-term sustainability due to accumulated assets.
Spending Breakdown
How First Step Foundation allocates its funds across programs, administration, and fundraising.
95%
Program Spending
Healthy — majority goes to mission
5%
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 First Step Foundation
Is First Step Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, First Step Foundation (EIN: 201876745) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
Is First Step Foundation a good charity to donate to?
First Step Foundation has a Mission Score of 65/100. Revenue: $71K. Assets: $1.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for First Step Foundation?
The Employer Identification Number (EIN) for First Step Foundation is 201876745. 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 Step Foundation spend its money?
First Step Foundation allocates 95% to programs, 5% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify First Step Foundation's tax-exempt status?
You can verify First Step Foundation's tax-exempt status using EIN 201876745 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 Step Foundation exhibits highly erratic financial activity, making a consistent assessment challenging. The organization reported a significant revenue spike to $1,010,446 in the 202306 period, a dramatic increase from prior years where revenue rarely exceeded $70,000. Concurrently, expenses were reported as an exceptionally low $475 in 202306, which is highly unusual for an organization with over $1 million in revenue and assets exceeding $1 million. This discrepancy between high revenue and minimal reported expenses raises questions about the completeness or accuracy of expense reporting, or indicates a substantial accumulation of unrestricted net assets. The organization's assets have grown substantially, reaching $1,126,221, with no reported liabilities, suggesting strong financial solvency. However, the extreme fluctuations in revenue and expenses across filings, including periods with zero reported expenses, hinder a clear understanding of its operational efficiency and program spending.