Quick charity verification for Freedom House (EIN: 204427718)
Verdict: Freedom House appears trustworthy
92/100Mission Score
$5.8MRevenue
$4.7MAssets
1Red Flags
5Strengths
Red Flags
No reported officer compensation for an organization with nearly $4.8 million in revenue, which could indicate compensation is categorized differently or leadership is entirely volunteer, warranting further inquiry into how leadership is sustained.
Strengths
Consistent and significant revenue growth, from $939,127 in 2014 to $4,756,420 in 2023.
Healthy operating surpluses, with 2023 revenue ($4,756,420) exceeding expenses ($4,269,076).
Strong asset growth, from $401,689 in 2014 to $3,580,283 in 2023, enhancing financial stability.
Very low liabilities relative to assets, indicating strong financial health and low debt burden.
No reported officer compensation, suggesting a high proportion of funds are directed to programs.
Spending Breakdown
How Freedom House allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
7%
Admin Costs
Reasonable — admin costs in check
3%
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 Freedom House
Is Freedom House a legitimate charity?
Based on AI analysis of IRS 990 filings, Freedom House (EIN: 204427718) appears trustworthy. Mission Score: 92/100. 1 red flag identified, 5 strengths noted.
Is Freedom House a good charity to donate to?
Freedom House has a Mission Score of 92/100. Revenue: $5.8M. Assets: $4.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Freedom House?
The Employer Identification Number (EIN) for Freedom House is 204427718. 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 Freedom House spend its money?
Freedom House allocates 90% to programs, 7% to administration, and 3% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Freedom House's tax-exempt status?
You can verify Freedom House's tax-exempt status using EIN 204427718 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
Freedom House demonstrates consistent financial growth over the past decade, with revenue increasing from $939,127 in 2014 to $4,756,420 in 2023. The organization consistently operates with a surplus, as seen in 2023 where revenue of $4,756,420 exceeded expenses of $4,269,076, indicating sound financial management and the ability to build reserves. Assets have also grown significantly, from $401,689 in 2014 to $3,580,283 in 2023, further strengthening its financial position.
The organization appears to be highly efficient in its spending, with a strong focus on program delivery. The absence of reported officer compensation across all available filings suggests that leadership may be volunteer-based or compensated through other means not categorized as officer compensation, which can contribute to lower administrative overhead. This commitment to minimizing executive costs likely allows a greater proportion of funds to be directed towards its mission.
Transparency is high given the consistent filing of IRS Form 990s over 14 periods, providing a clear historical financial picture. The consistent growth in revenue and assets, coupled with low liabilities and no reported officer compensation, paints a picture of a financially healthy and responsibly managed nonprofit.