Quick charity verification for Friendship Ii Co (EIN: 205369920)
Verdict: Friendship Ii Co appears trustworthy
85/100Mission Score
$277KRevenue
$1.5MAssets
2Red Flags
4Strengths
Red Flags
Consistent decline in total assets over the past decade, from $1,798,080 in 2014 to $1,488,465 in 2023.
Multiple years with expenses exceeding revenue, indicating operational deficits (e.g., 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014).
Strengths
Zero officer compensation reported across all filings, indicating strong financial integrity and mission focus.
Substantial asset base ($1,488,465 in 2023) provides financial stability and a buffer against operational fluctuations.
Recent positive trend in revenue growth, with 2023 showing revenue exceeding expenses.
Low liabilities relative to assets, suggesting a healthy balance sheet.
Spending Breakdown
How Friendship Ii Co allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
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 Friendship Ii Co
Is Friendship Ii Co a legitimate charity?
Based on AI analysis of IRS 990 filings, Friendship Ii Co (EIN: 205369920) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is Friendship Ii Co a good charity to donate to?
Friendship Ii Co has a Mission Score of 85/100. Revenue: $277K. Assets: $1.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Friendship Ii Co?
The Employer Identification Number (EIN) for Friendship Ii Co is 205369920. 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 Friendship Ii Co spend its money?
Friendship Ii Co allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Friendship Ii Co's tax-exempt status?
You can verify Friendship Ii Co's tax-exempt status using EIN 205369920 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
Friendship Ii Co demonstrates consistent financial stability with a healthy asset base relative to its annual revenue. While the organization has experienced periods where expenses exceeded revenue, such as in 2021 ($262,756 expenses vs. $178,650 revenue) and 2020 ($211,422 expenses vs. $159,718 revenue), it has maintained substantial assets, peaking at $1,798,080 in 2014 and remaining strong at $1,488,465 in 2023. The consistent reporting of 0% officer compensation across all available filings indicates a strong commitment to directing funds towards its mission rather than executive salaries, which is a positive sign for transparency and efficiency. The organization's revenue has shown an upward trend in recent years, from $143,239 in 2014 to $279,205 in 2023, suggesting growing support or program activity. The low liabilities relative to assets also point to a sound financial position.
However, without a detailed breakdown of program, administrative, and fundraising expenses from the provided data, a precise assessment of spending efficiency is challenging. The consistent operational deficits in several years, while not immediately alarming given the asset base, warrant closer examination to ensure long-term sustainability if this trend were to continue without corresponding asset growth or strategic investment. The organization's ability to absorb these deficits suggests a prudent management of its reserves. The lack of officer compensation is a significant positive indicator of financial integrity and mission focus.
Overall, Friendship Ii Co appears to be a financially stable organization with a strong asset base and a commendable commitment to avoiding executive compensation. Its increasing revenue in recent years is a positive trend, and while some years show expenses exceeding revenue, its substantial assets provide a buffer. Further detailed expense breakdowns would enhance the assessment of its spending efficiency.