Quick charity verification for Gem Foundation Inc (EIN: 208856858)
Verdict: Gem Foundation Inc shows mixed signals
55/100Mission Score
$315KRevenue
$6.2MAssets
3Red Flags
2Strengths
Red Flags
Significant and sustained decline in revenue from $15.2M in 2015 to $0.29M in 2023.
Consistent operational deficits where expenses exceed revenue in recent years (e.g., 2023, 2022, 2021, 2020).
Substantial depletion of assets from $17.9M in 2015 to $5.8M in 2023.
Strengths
Consistent reporting of 0% officer compensation, indicating strong financial transparency in this area.
Maintains a substantial asset base of over $5.8 million, despite recent declines.
Spending Breakdown
How Gem 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 Gem Foundation Inc
Is Gem Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Gem Foundation Inc (EIN: 208856858) shows mixed signals. Mission Score: 55/100. 3 red flags identified, 2 strengths noted.
Is Gem Foundation Inc a good charity to donate to?
Gem Foundation Inc has a Mission Score of 55/100. Revenue: $315K. Assets: $6.2M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Gem Foundation Inc?
The Employer Identification Number (EIN) for Gem Foundation Inc is 208856858. 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 Gem Foundation Inc spend its money?
Gem Foundation Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Gem Foundation Inc's tax-exempt status?
You can verify Gem Foundation Inc's tax-exempt status using EIN 208856858 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
Gem Foundation Inc. exhibits a concerning trend of declining revenue and increasing asset depletion over the past several years, particularly since 2015. While the organization reported $15,207,831 in revenue in 2015, this has plummeted to $292,327 in 2023, with expenses consistently exceeding revenue in recent periods. For example, in 2023, expenses were $353,461 against $292,327 in revenue, indicating an operational deficit. The organization's assets have also significantly decreased from a peak of $17,986,436 in 2015 to $5,889,409 in 2023, suggesting a reliance on its endowment to cover operational costs.
The consistent reporting of 'Officer Comp=0%' across all filings indicates strong transparency regarding executive compensation, or a structure where no officers receive compensation, which is a positive sign for donor confidence. However, the sustained operational deficits and substantial asset reduction raise questions about the long-term financial sustainability and the effectiveness of its fundraising efforts. The NTEE code T20 (Philanthropy, Voluntarism, and Grantmaking Foundations) suggests its primary activity is grantmaking, which would typically involve distributing funds rather than accumulating significant operational deficits.