Quick charity verification for Hand Tools Institute (EIN: 136158829)
Verdict: Hand Tools Institute appears trustworthy
85/100Mission Score
$351KRevenue
$329KAssets
1Red Flags
5Strengths
Red Flags
NTEE Code is unknown, which limits understanding of its specific charitable purpose and peer comparison.
Strengths
Consistent financial surpluses, such as $23,132 in 2023, demonstrating fiscal responsibility.
0% reported officer compensation across all filings, indicating high efficiency in leadership costs.
Healthy growth in assets over the past decade, from $150,786 in 2014 to $336,612 in 2023.
Low and stable liabilities, indicating strong financial stability and minimal debt.
Consistent revenue generation, averaging around $350,000 annually, showing stable operations.
Spending Breakdown
How Hand Tools Institute allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
5%
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 Hand Tools Institute
Is Hand Tools Institute a legitimate charity?
Based on AI analysis of IRS 990 filings, Hand Tools Institute (EIN: 136158829) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 5 strengths noted.
Is Hand Tools Institute a good charity to donate to?
Hand Tools Institute has a Mission Score of 85/100. Revenue: $351K. Assets: $329K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Hand Tools Institute?
The Employer Identification Number (EIN) for Hand Tools Institute is 136158829. 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 Hand Tools Institute spend its money?
Hand Tools Institute allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Hand Tools Institute's tax-exempt status?
You can verify Hand Tools Institute's tax-exempt status using EIN 136158829 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 Hand Tools Institute demonstrates consistent financial operations over the past decade, with revenues and expenses generally in a similar range, typically around $300,000-$370,000 annually. For instance, in 2023, revenue was $346,956 against expenses of $323,824, indicating a slight surplus. The organization maintains a healthy asset base relative to its size, with assets growing from $150,786 in 2014 to $336,612 in 2023, suggesting prudent financial management and accumulation of reserves. Liabilities have remained relatively low and stable, such as $20,883 in 2023, which is a positive indicator of financial stability.
A key strength is the reported 0% officer compensation across all available filings, which suggests that the organization's leadership is either volunteer-based or compensated through other means not categorized as officer compensation on the 990, enhancing its efficiency and donor confidence. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories, it's challenging to fully assess spending efficiency. The consistent surplus in most years, like the $23,132 surplus in 2023, indicates that the organization is not overspending its income. Transparency could be further enhanced with more granular expense reporting.