Is Grace House Inc Legit?

Quick charity verification for Grace House Inc (EIN: 202023995)

Verdict: Grace House Inc shows mixed signals

65/100Mission Score

$2.7MRevenue

$3.8MAssets

5Red Flags

4Strengths

Red Flags

Consistent decline in assets over the past decade (from $5M in 2014 to $3.8M in 2023).
High liabilities relative to assets (e.g., $3,670,881 liabilities vs. $3,878,321 assets in 2023), indicating potential financial strain or significant restricted funds.
Frequent operation with expenses slightly exceeding revenue (e.g., 2023, 2022, 2021), which can erode reserves over time.
Lack of detailed expense breakdown (program, admin, fundraising) in provided data, hindering full spending efficiency analysis.
0% reported officer compensation for an organization of this size, which, while potentially positive, could also obscure true leadership costs if reported elsewhere.

Strengths

Consistent operational revenue generation, generally above $2 million annually in recent years.
Long history of IRS 990 filings (13 filings), indicating regulatory compliance and basic transparency.
Stable revenue base over the past decade, demonstrating consistent support or service delivery.
No reported officer compensation, which, if truly volunteer-led, would maximize funds for mission-related activities.

Spending Breakdown

How Grace House 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 House Inc

Is Grace House Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Grace House Inc (EIN: 202023995) shows mixed signals. Mission Score: 65/100. 5 red flags identified, 4 strengths noted.

Is Grace House Inc a good charity to donate to?

Grace House Inc has a Mission Score of 65/100. Revenue: $2.7M. Assets: $3.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Grace House Inc?

The Employer Identification Number (EIN) for Grace House Inc is 202023995. 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 House Inc spend its money?

Grace House Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Grace House Inc's tax-exempt status?

You can verify Grace House Inc's tax-exempt status using EIN 202023995 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 House Inc. demonstrates consistent operational activity with revenues and expenses generally in the range of $1.7 million to $2.5 million over the past decade. The organization has experienced a slight decline in assets from a peak of $5,048,845 in 2014 to $3,878,321 in 2023, while liabilities have remained relatively high, often exceeding 90% of assets in recent years (e.g., $3,670,881 liabilities against $3,878,321 assets in 2023). This indicates a reliance on debt or restricted funds, which warrants closer examination. The consistent reporting of 0% officer compensation across all available filings suggests either a fully volunteer-led executive team or that executive compensation is reported under other expense categories, which could impact transparency regarding leadership costs.

Financially, the organization has frequently operated with expenses slightly exceeding revenue, as seen in 2023 ($2,454,603 expenses vs. $2,404,844 revenue) and 2022 ($2,526,011 expenses vs. $2,479,685 revenue). While these deficits are not substantial in relation to overall revenue, a sustained trend could erode reserves. The lack of specific program, administrative, and fundraising expense breakdowns in the provided data limits a detailed assessment of spending efficiency. However, the consistent filing of IRS Form 990s over 13 periods indicates a commitment to regulatory compliance and basic financial transparency.

To fully assess financial health and spending efficiency, more detailed expense breakdowns are needed. The declining asset base coupled with high liabilities suggests a need for careful financial management and potentially a review of long-term sustainability strategies. The absence of reported officer compensation is a notable point, which, while potentially positive for program spending, could also obscure the true cost of leadership if compensation is simply reclassified.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.