Quick charity verification for Grace Charity Foundation Inc (EIN: 208080868)
Verdict: Grace Charity Foundation Inc shows mixed signals
45/100Mission Score
$5.3MRevenue
$4.6MAssets
5Red Flags
3Strengths
Red Flags
Consistent and significant operating deficits (e.g., 2023 expenses $718,979 vs. revenue $38,270)
Negative revenue reported in 2022 ($-373,060)
Declining asset base from $6,548,966 in 2021 to $5,127,070 in 2023, suggesting reliance on reserves
Lack of detailed spending breakdown (program vs. admin/fundraising) in provided data, hindering efficiency assessment
Unclear long-term financial sustainability given current trends
Strengths
No reported officer compensation across all filings, indicating efficient use of funds at the executive level
Maintains a substantial asset base ($5,127,070 in 2023) despite operating deficits
Long filing history (10 filings) suggests consistent compliance with IRS reporting requirements
Spending Breakdown
How Grace Charity 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 Grace Charity Foundation Inc
Is Grace Charity Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Grace Charity Foundation Inc (EIN: 208080868) shows mixed signals. Mission Score: 45/100. 5 red flags identified, 3 strengths noted.
Is Grace Charity Foundation Inc a good charity to donate to?
Grace Charity Foundation Inc has a Mission Score of 45/100. Revenue: $5.3M. Assets: $4.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Grace Charity Foundation Inc?
The Employer Identification Number (EIN) for Grace Charity Foundation Inc is 208080868. 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 Grace Charity Foundation Inc spend its money?
Grace Charity Foundation Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Grace Charity Foundation Inc's tax-exempt status?
You can verify Grace Charity Foundation Inc's tax-exempt status using EIN 208080868 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
Grace Charity Foundation Inc. exhibits a concerning financial trend, with expenses consistently exceeding revenue in recent years. For instance, in 2023, the organization reported revenue of $38,270 against expenses of $718,979, and in 2022, it had negative revenue of $-373,060 while incurring $371,244 in expenses. This pattern of deficit spending raises questions about the long-term sustainability of its operations. While the organization maintains substantial assets, reported at $5,127,070 in 2023, the consistent draw on these assets to cover operational shortfalls is not sustainable. The lack of reported officer compensation across all filings suggests a volunteer-led or minimally compensated leadership structure, which can be a positive indicator of resource allocation, but it doesn't offset the significant revenue-expense imbalance. Further details on program spending versus administrative and fundraising costs are needed for a complete assessment of spending efficiency, as the provided data only offers total expenses.