Is Grace Hughes Foundation Legit?

Spending Breakdown

How Grace Hughes Foundation allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Hughes Foundation

Is Grace Hughes Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Grace Hughes Foundation (EIN: 201635744) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.

Is Grace Hughes Foundation a good charity to donate to?

Grace Hughes Foundation has a Mission Score of 75/100. Revenue: $111K. Assets: $243K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Grace Hughes Foundation?

The Employer Identification Number (EIN) for Grace Hughes Foundation is 201635744. 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 Hughes Foundation spend its money?

Grace Hughes Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Grace Hughes Foundation's tax-exempt status?

You can verify Grace Hughes Foundation's tax-exempt status using EIN 201635744 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 Grace Hughes Foundation, located in Lime Springs, IA, appears to be a small, privately funded organization with consistent, albeit modest, revenue streams. Over the past five years (2019-2023), its annual revenue has fluctuated between approximately $4,911 and $17,809, with the latest reported revenue at $11,294. Expenses have generally exceeded revenue in most recent periods, leading to a gradual decline in assets from $302,844 in 2011 to $237,075 in 2023. This trend suggests the foundation is drawing down its principal to cover operational costs, which is a common strategy for endowed foundations but warrants monitoring for long-term sustainability.

The organization demonstrates strong financial transparency by consistently filing its IRS Form 990s. A key positive indicator is the reported 0% officer compensation across all available filings, suggesting that leadership is unpaid, which can maximize funds available for programs. However, without a detailed breakdown of expenses beyond total expenses, it's challenging to fully assess spending efficiency between program, administrative, and fundraising costs. The consistent liabilities of $1 in recent years are unusual but negligible.

Overall, the Grace Hughes Foundation appears to be a well-managed, transparent entity, particularly regarding executive compensation. Its financial health is stable but shows a pattern of asset depletion. Further insight into the nature of its expenses would provide a more complete picture of its spending efficiency and program impact.

Verdict: Grace Hughes Foundation appears trustworthy

Red Flags

Strengths