Quick charity verification for Habitat For Neighborhood Business (EIN: 204480392)
Verdict: Habitat For Neighborhood Business appears trustworthy
88/100Mission Score
$209KRevenue
$1.6MAssets
2Red Flags
4Strengths
Red Flags
Consistent operating deficits in recent years (e.g., 2023: $162,273 revenue vs. $223,712 expenses; 2022: $217,994 revenue vs. $272,917 expenses).
Declining revenue trend in the most recent filings.
Strengths
Consistent reporting of 0% officer compensation across all filings, indicating high efficiency and mission focus.
Strong and stable asset base of over $1.6 million, providing financial resilience.
Excellent asset-to-liability ratio (e.g., 44:1 in 2023), demonstrating strong financial health.
Long history of IRS 990 filings, indicating transparency and consistent operation.
Spending Breakdown
How Habitat For Neighborhood Business allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
0%
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 Habitat For Neighborhood Business
Is Habitat For Neighborhood Business a legitimate charity?
Based on AI analysis of IRS 990 filings, Habitat For Neighborhood Business (EIN: 204480392) appears trustworthy. Mission Score: 88/100. 2 red flags identified, 4 strengths noted.
Is Habitat For Neighborhood Business a good charity to donate to?
Habitat For Neighborhood Business has a Mission Score of 88/100. Revenue: $209K. Assets: $1.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Habitat For Neighborhood Business?
The Employer Identification Number (EIN) for Habitat For Neighborhood Business is 204480392. 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 Habitat For Neighborhood Business spend its money?
Habitat For Neighborhood Business allocates 85% to programs, 15% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Habitat For Neighborhood Business's tax-exempt status?
You can verify Habitat For Neighborhood Business's tax-exempt status using EIN 204480392 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
Habitat For Neighborhood Business demonstrates a consistent financial profile over the past decade, maintaining assets around $1.6 million. While recent years (2022 and 2023) show expenses exceeding revenue, leading to a slight draw on reserves, the organization's overall asset base remains stable. For instance, in 2023, revenue was $162,273 against expenses of $223,712, resulting in a deficit. However, the organization has a strong history of no reported officer compensation, indicating a commitment to directing funds towards its mission rather than executive salaries. This practice enhances its transparency and financial efficiency.
The organization's spending efficiency appears reasonable, though the recent trend of operating at a deficit warrants monitoring. With no officer compensation reported across all filings, a significant portion of its operational expenses are likely directed towards program delivery and essential administrative functions. The consistent asset base suggests prudent financial management over the long term, despite year-to-year fluctuations in revenue and expenses. The lack of reported officer compensation is a strong indicator of a lean operational structure and a focus on mission-driven spending.
Transparency is high given the consistent reporting of zero officer compensation, which is a key metric for many donors. The organization's financial statements are readily available through its IRS 990 filings, providing a clear picture of its financial activities. The stability of its asset base, even with recent operating deficits, suggests a well-managed endowment or reserve fund that supports its ongoing operations. The organization's long filing history further contributes to its transparency, allowing for a comprehensive review of its financial trends.