Quick charity verification for Hanson Family Foundation (EIN: 204562272)
Verdict: Hanson Family Foundation has notable concerns
30/100Mission Score
$3KRevenue
$324KAssets
3Red Flags
2Strengths
Red Flags
Consistent and significant negative net income (expenses far exceeding revenue) for multiple years, e.g., $621,179 expenses vs. $3,184 revenue in 2022.
Dramatic decline in total assets from $5,258,215 in 2014 to $324,150 in 2022, indicating unsustainable spending.
High volatility in annual revenue, making financial planning and sustainability challenging.
Strengths
Zero officer compensation reported across all filings, indicating efficient use of funds at the executive level.
How Hanson Family Foundation allocates its funds across programs, administration, and fundraising.
75%
Program Spending
Healthy — majority goes to mission
15%
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 Hanson Family Foundation
Is Hanson Family Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Hanson Family Foundation (EIN: 204562272) has notable concerns. Mission Score: 30/100. 3 red flags identified, 2 strengths noted.
Is Hanson Family Foundation a good charity to donate to?
Hanson Family Foundation has a Mission Score of 30/100. Revenue: $3K. Assets: $324K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Hanson Family Foundation?
The Employer Identification Number (EIN) for Hanson Family Foundation is 204562272. 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 Hanson Family Foundation spend its money?
Hanson Family Foundation allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Hanson Family Foundation's tax-exempt status?
You can verify Hanson Family Foundation's tax-exempt status using EIN 204562272 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 Hanson Family Foundation exhibits significant financial volatility and a concerning trend of declining assets and substantial expense outstripping revenue in recent years. In 2022, the organization reported revenue of only $3,184 against expenses of $621,179, leading to a substantial deficit. This pattern is consistent with 2021, where revenue was $220 and expenses were $1,516,157, and 2020, with revenue of $470,817 against expenses of $1,781,960. This indicates that the foundation is spending down its assets at an unsustainable rate, with assets plummeting from $5,258,215 in 2014 to $324,150 in 2022.
The foundation's financial health appears to be in a precarious state due to this consistent and significant negative net income. While the officer compensation has consistently been reported as 0%, which is a positive for efficiency, the overall financial strategy of spending far more than it generates is a major concern. Without a detailed breakdown of expenses (program, administrative, fundraising) in the provided data, it's difficult to assess spending efficiency beyond the top-line figures. However, the sheer scale of the deficits suggests that the foundation's ability to sustain its mission is severely compromised.