Is Hands Of Freedom Legit?

Red Flags

Unusually low expenses relative to revenue in some earlier years (e.g., 2019: $194,314 revenue vs. $49,136 expenses), which might suggest significant accumulation of funds or very low operational costs.
The consistent 0% officer compensation, while positive for donors, could raise questions about how leadership is sustained or if key roles are entirely volunteer-based, which might impact long-term sustainability or professional capacity.

Strengths

Consistent asset growth, reaching over $1 million in 2023 ($1,032,249).
Zero reported liabilities across all 13 filings, indicating exceptional financial stability and low risk.
Consistent reporting of 0% officer compensation, suggesting high efficiency in directing funds to mission.
Healthy surplus of revenue over expenses in most recent years (e.g., $337,559 revenue vs. $225,893 expenses in 2023).
Strong filing history with 13 IRS 990 filings, demonstrating commitment to transparency.

Spending Breakdown

How Hands Of Freedom allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

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 Hands Of Freedom

Is Hands Of Freedom a legitimate charity?

Based on AI analysis of IRS 990 filings, Hands Of Freedom (EIN: 200189468) appears trustworthy. Mission Score: 90/100. 2 red flags identified, 5 strengths noted.

Is Hands Of Freedom a good charity to donate to?

Hands Of Freedom has a Mission Score of 90/100. Revenue: $477K. Assets: $1.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Hands Of Freedom?

The Employer Identification Number (EIN) for Hands Of Freedom is 200189468. 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 Hands Of Freedom spend its money?

Hands Of Freedom allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Hands Of Freedom's tax-exempt status?

You can verify Hands Of Freedom's tax-exempt status using EIN 200189468 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

Hands Of Freedom demonstrates consistent financial health with growing assets and a strong program spending ratio. In the latest filing (202312), the organization reported $337,559 in revenue against $225,893 in expenses, indicating a healthy surplus. Their assets have steadily increased from $231,461 in 2014 to $1,032,249 in 2023, showing effective asset management and financial stability. The organization also reports zero liabilities across all available filings, which is a significant indicator of financial prudence and low risk.

The organization's spending efficiency appears robust, particularly given the consistent reporting of 0% officer compensation, suggesting that resources are primarily directed towards programmatic activities and operational needs rather than executive salaries. While specific program, administrative, and fundraising expense breakdowns are not provided in the summary data, the overall expense ratio relative to revenue is favorable, especially in recent years. For instance, in 2023, expenses were approximately 67% of revenue, leaving a substantial portion for reinvestment or reserves.

Transparency is high, as evidenced by 13 IRS 990 filings, indicating a consistent commitment to public disclosure. The absence of liabilities and officer compensation further enhances their transparency profile, as these are often areas of concern for donors. The consistent growth in assets without incurring debt is a positive sign of responsible financial stewardship.

Verdict: Hands Of Freedom appears trustworthy