Quick charity verification for H Cap Inc (EIN: 134240990)
Verdict: H Cap Inc shows mixed signals
65/100Mission Score
$10.5MRevenue
$3.0MAssets
3Red Flags
3Strengths
Red Flags
Expenses exceeding revenue in recent periods (e.g., 202312 and 202212), indicating operational deficits.
Significant increase in liabilities relative to assets, reaching $1,601,954 in 202312, which could pose financial risk.
Lack of detailed functional expense breakdown (program, admin, fundraising) in the provided data, hindering full spending efficiency assessment.
Strengths
Consistent reporting of 0% officer compensation across all filings, indicating efficient use of funds for leadership.
Significant revenue growth over the past decade, from $577,062 in 2014 to $5,471,529 in 2023, demonstrating strong fundraising capacity.
Substantial asset growth, from $204,706 in 2014 to $2,098,308 in 2023, indicating an expanding organizational footprint.
Spending Breakdown
How H Cap 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 H Cap Inc
Is H Cap Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, H Cap Inc (EIN: 134240990) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
Is H Cap Inc a good charity to donate to?
H Cap Inc has a Mission Score of 65/100. Revenue: $10.5M. Assets: $3.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for H Cap Inc?
The Employer Identification Number (EIN) for H Cap Inc is 134240990. 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 H Cap Inc spend its money?
H Cap Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify H Cap Inc's tax-exempt status?
You can verify H Cap Inc's tax-exempt status using EIN 134240990 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
H Cap Inc demonstrates a concerning trend of increasing liabilities relative to assets, as seen in the 202312 filing where liabilities reached $1,601,954 against assets of $2,098,308. This indicates a significant reliance on debt or short-term obligations. While the organization has shown substantial revenue growth, from $577,062 in 2014 to $5,471,529 in 2023, its expenses have frequently outpaced revenue in recent years, such as in 202312 (expenses $5,630,260 vs. revenue $5,471,529) and 202212 (expenses $4,184,014 vs. revenue $3,429,346). This suggests potential operational inefficiencies or a strategy of spending down reserves, which could impact long-term financial stability.
The consistent reporting of 0% officer compensation across all available filings is a positive indicator of resource allocation towards the mission rather than executive salaries. However, without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to fully assess spending efficiency. The rapid growth in revenue and assets over the past decade is notable, but the recent deficits and rising liabilities warrant closer scrutiny to ensure sustainable financial practices and effective use of donor funds. The organization's transparency regarding executive compensation is commendable, but further detail on functional expenses would enhance overall financial clarity.