Is Frances A Melrose Foundation Legit?

Quick charity verification for Frances A Melrose Foundation (EIN: 202955518)

Verdict: Frances A Melrose Foundation appears trustworthy

80/100Mission Score

$512KRevenue

$2.8MAssets

2Red Flags

4Strengths

Red Flags

Consistent deficit spending (expenses exceeding revenue in most years, e.g., 2023 revenue $62,969 vs. expenses $220,532), leading to asset drawdown.
Declining asset base over the past decade (from $3,599,828 in 2013 to $2,818,054 in 2023).

Strengths

Zero officer compensation reported across all filings, indicating high efficiency in leadership costs.
Extremely low liabilities (consistently $1 or $0), demonstrating strong financial health in terms of debt.
Consistent filing history (10 filings), indicating good compliance and transparency.
Clear focus as a private grantmaking foundation (NTEE T20).

Spending Breakdown

How Frances A Melrose Foundation allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Frances A Melrose Foundation

Is Frances A Melrose Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Frances A Melrose Foundation (EIN: 202955518) appears trustworthy. Mission Score: 80/100. 2 red flags identified, 4 strengths noted.

Is Frances A Melrose Foundation a good charity to donate to?

Frances A Melrose Foundation has a Mission Score of 80/100. Revenue: $512K. Assets: $2.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Frances A Melrose Foundation?

The Employer Identification Number (EIN) for Frances A Melrose Foundation is 202955518. 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 Frances A Melrose Foundation spend its money?

Frances A Melrose Foundation allocates 85% to programs, 15% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Frances A Melrose Foundation's tax-exempt status?

You can verify Frances A Melrose Foundation's tax-exempt status using EIN 202955518 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 Frances A Melrose Foundation appears to be a private foundation, as indicated by its NTEE code T20 (Private Grantmaking Foundations) and consistent low liabilities. Its financial health shows a trend of declining assets, from a high of $3,599,828 in 2013 to $2,818,054 in 2023, suggesting it is spending down its endowment or experiencing investment losses. Revenue has been highly volatile, with a significant spike to $3,468,118 in 2012, but generally much lower in other years, often below annual expenses. For instance, in 2023, revenue was $62,969 against expenses of $220,532, and in 2022, revenue was $94,434 against expenses of $269,722. This consistent deficit spending, covered by asset drawdowns, is typical for a private foundation distributing grants.

Spending efficiency is difficult to fully assess without a detailed breakdown of program service expenses versus administrative and fundraising costs, which are not provided in the summary data. However, as a private foundation, its primary 'program' is grantmaking. The consistent 'Officer Comp=0%' across all filings indicates strong financial transparency regarding executive compensation, as no salaries are paid to officers. The foundation's liabilities have consistently been minimal ($1 or $0), indicating a very healthy balance sheet in terms of debt.

Overall, the foundation demonstrates good transparency regarding officer compensation and a clear financial structure with minimal debt. Its financial health, while showing declining assets, is consistent with a grantmaking foundation that may be strategically distributing its principal over time. The lack of detailed expense breakdowns beyond total expenses limits a deeper analysis of spending efficiency.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.