Quick charity verification for Grace & Hope For Children (EIN: 201455992)
Verdict: Grace & Hope For Children shows mixed signals
45/100Mission Score
$82KRevenue
$127KAssets
4Red Flags
2Strengths
Red Flags
Consistent operating deficits (expenses exceeding revenue) in recent years, e.g., $55,363 revenue vs. $109,389 expenses in 2024.
Declining asset base from $287,135 in 2021 to $197,162 in 2024, indicating erosion of financial reserves.
Increasing liabilities from $60,360 in 2021 to $72,499 in 2024, adding to financial strain.
Lack of detailed expense breakdown beyond total expenses, making it difficult to assess program efficiency accurately.
Strengths
0% officer compensation reported across all filings, indicating no direct salary costs for executive leadership.
Long filing history (13 filings) suggests consistent compliance with IRS reporting requirements.
Spending Breakdown
How Grace & Hope For Children 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 & Hope For Children
Is Grace & Hope For Children a legitimate charity?
Based on AI analysis of IRS 990 filings, Grace & Hope For Children (EIN: 201455992) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
Is Grace & Hope For Children a good charity to donate to?
Grace & Hope For Children has a Mission Score of 45/100. Revenue: $82K. Assets: $127K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Grace & Hope For Children?
The Employer Identification Number (EIN) for Grace & Hope For Children is 201455992. 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 & Hope For Children spend its money?
Grace & Hope For Children allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Grace & Hope For Children's tax-exempt status?
You can verify Grace & Hope For Children's tax-exempt status using EIN 201455992 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 & Hope For Children exhibits concerning financial trends, with expenses consistently exceeding revenue in recent years. For example, in 2024, expenses were $109,389 against revenues of $55,363, and in 2023, expenses were $53,083 against revenues of $30,724. This sustained deficit spending is eroding the organization's asset base, which has declined from a high of $287,135 in 2021 to $197,162 in 2024. While the organization reports 0% officer compensation, which is a positive for resource allocation, the overall financial stability is questionable given the persistent operating losses.
The organization's transparency regarding program spending efficiency is not explicitly detailed in the provided data, making it difficult to fully assess how effectively funds are being utilized for its mission. The consistent decline in assets coupled with increasing liabilities (from $60,360 in 2021 to $72,499 in 2024) suggests a need for a strategic financial review to ensure long-term viability. Without more granular expense breakdowns, it's challenging to determine the exact proportion of spending dedicated to programs versus administrative or fundraising activities.
Despite the lack of officer compensation, the financial trajectory indicates a need for improved revenue generation or expense management to achieve financial sustainability. The organization's ability to continue its mission effectively may be hampered if these financial trends persist, potentially impacting its capacity to serve its beneficiaries.