Quick charity verification for Gay Wise Foundation Inc (EIN: 203771728)
Verdict: Gay Wise Foundation Inc shows mixed signals
60/100Mission Score
$144KRevenue
$903KAssets
3Red Flags
3Strengths
Red Flags
Consistent operational deficits, with expenses frequently exceeding revenue (e.g., 202312: $109,339 expenses vs. $41,970 revenue).
Declining asset base over the past decade, from $1.3 million in 2011 to $902,388 in 2023, indicating unsustainable spending.
Reliance on drawing down assets to cover operational costs.
Strengths
Zero officer compensation reported, indicating volunteer leadership and efficient use of funds for personnel.
Very low liabilities ($1 in most recent filings), suggesting no significant debt burden.
Consistent filing history, demonstrating good transparency.
Spending Breakdown
How Gay Wise 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 Gay Wise Foundation Inc
Is Gay Wise Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Gay Wise Foundation Inc (EIN: 203771728) shows mixed signals. Mission Score: 60/100. 3 red flags identified, 3 strengths noted.
Is Gay Wise Foundation Inc a good charity to donate to?
Gay Wise Foundation Inc has a Mission Score of 60/100. Revenue: $144K. Assets: $903K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Gay Wise Foundation Inc?
The Employer Identification Number (EIN) for Gay Wise Foundation Inc is 203771728. 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 Gay Wise Foundation Inc spend its money?
Gay Wise Foundation Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Gay Wise Foundation Inc's tax-exempt status?
You can verify Gay Wise Foundation Inc's tax-exempt status using EIN 203771728 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 Gay Wise Foundation Inc. demonstrates a consistent pattern of spending significantly more than its revenue, as evidenced by the 202312 filing where expenses were $109,339 against revenue of $41,970, and similar trends in prior years. This operational deficit has led to a gradual decline in assets over the past decade, from $1,315,900 in 2011 to $902,388 in 2023. While the organization maintains a very low liability profile ($1 in most recent filings), the sustained deficit spending raises concerns about long-term financial sustainability if not addressed. The absence of officer compensation reported across all filings suggests a volunteer-driven leadership, which can be a positive indicator of resource allocation, but the overall financial health is challenged by the persistent revenue shortfall.
The organization's transparency is good, with consistent annual filings available. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories in the provided data, it's challenging to fully assess spending efficiency. The consistent operational losses, where expenses frequently double or triple revenue, indicate a reliance on drawing down existing assets rather than generating sufficient income to cover operations. This trend, if continued, is unsustainable and could eventually impact the organization's ability to fulfill its mission.