Quick charity verification for Fragrance Foundation Inc (EIN: 136162393)
Verdict: Fragrance Foundation Inc appears trustworthy
75/100Mission Score
$4.9MRevenue
$4.7MAssets
2Red Flags
4Strengths
Red Flags
Lack of detailed functional expense breakdown (program, admin, fundraising) in provided data
Significant liabilities consistently around $2 million relative to assets
Strengths
Consistent asset growth over the past decade, from $2.2M in 2014 to $4.5M in 2023
No reported officer compensation, indicating potential volunteer leadership or efficient use of funds for executive roles
Generally stable revenue streams, recovering well from pandemic-related dips
Revenues generally exceed expenses, contributing to asset accumulation
Spending Breakdown
How Fragrance Foundation Inc allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
Admin Costs
Reasonable — admin costs in check
10%
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 Fragrance Foundation Inc
Is Fragrance Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Fragrance Foundation Inc (EIN: 136162393) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 4 strengths noted.
Is Fragrance Foundation Inc a good charity to donate to?
Fragrance Foundation Inc has a Mission Score of 75/100. Revenue: $4.9M. Assets: $4.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Fragrance Foundation Inc?
The Employer Identification Number (EIN) for Fragrance Foundation Inc is 136162393. 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 Fragrance Foundation Inc spend its money?
Fragrance Foundation Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Fragrance Foundation Inc's tax-exempt status?
You can verify Fragrance Foundation Inc's tax-exempt status using EIN 136162393 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 Fragrance Foundation Inc. demonstrates generally stable financial health, with revenues consistently exceeding expenses in most recent years, leading to a steady growth in assets. For instance, in 2023, revenues were $4,188,898 against expenses of $4,316,851, showing a slight deficit, but this follows several years of surpluses. The organization's assets have grown from $2,217,976 in 2014 to $4,545,376 in 2023, indicating good financial management and accumulation of resources. However, the liabilities have also remained significant, hovering around $2 million, which warrants attention to ensure long-term solvency.
Spending efficiency appears reasonable, though a detailed breakdown of program versus administrative and fundraising expenses is not provided in the summary data. Without this, it's challenging to fully assess how efficiently funds are being directed towards its mission. The consistent growth in assets suggests that the organization is not overspending and is building reserves. The absence of reported officer compensation is a notable aspect of its financial structure, potentially indicating a volunteer-led executive team or compensation being reported under other categories, which would require further investigation for full transparency.
Transparency regarding executive compensation is high, as the filings consistently report 0% for officer compensation. This is a positive indicator for donors concerned about excessive executive pay. However, a more detailed functional expense breakdown would enhance transparency regarding how funds are allocated across programs, administration, and fundraising efforts. Overall, the organization appears financially sound with a good trend in asset growth, but a deeper dive into expense allocation would provide a more complete picture of its operational efficiency.