Quick charity verification for Happy Davis Foundation (EIN: 203246052)
Verdict: Happy Davis Foundation appears trustworthy
85/100Mission Score
$283KRevenue
$2.9MAssets
3Red Flags
4Strengths
Red Flags
Significant fluctuation in annual revenue, from $10.2M in 2014 to $151K in 2023, without clear explanation.
No reported officer compensation for an organization with nearly $3 million in assets, which could indicate a lack of transparency regarding leadership costs or an unusual operational model.
Lack of detailed expense breakdown (program vs. admin vs. fundraising) in the provided data makes it difficult to fully assess spending efficiency.
Strengths
Consistent growth in assets, from $1.8M in 2011 to $2.9M in 2023, indicating strong financial management.
Extremely low reported expenses relative to revenue and assets in recent years, suggesting high operational efficiency.
Zero reported officer compensation, contributing to very low administrative overhead.
Consistent IRS 990 filing history (10 filings), demonstrating good compliance and transparency.
Spending Breakdown
How Happy Davis Foundation allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
10%
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 Happy Davis Foundation
Is Happy Davis Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Happy Davis Foundation (EIN: 203246052) appears trustworthy. Mission Score: 85/100. 3 red flags identified, 4 strengths noted.
Is Happy Davis Foundation a good charity to donate to?
Happy Davis Foundation has a Mission Score of 85/100. Revenue: $283K. Assets: $2.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Happy Davis Foundation?
The Employer Identification Number (EIN) for Happy Davis Foundation is 203246052. 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 Happy Davis Foundation spend its money?
Happy Davis Foundation allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Happy Davis Foundation's tax-exempt status?
You can verify Happy Davis Foundation's tax-exempt status using EIN 203246052 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 Happy Davis Foundation demonstrates a strong financial position with consistently growing assets, reaching $2,928,715 in the latest period. While revenue has fluctuated significantly over its history, from a high of $10,209,888 in 2014 to $151,509 in 2023, the organization has maintained very low expenses in recent years relative to its revenue and asset base. For instance, in 2023, expenses were only $36,879 against $151,509 in revenue, indicating a substantial surplus. This trend of low expenses relative to revenue is consistent across the last three reported periods.
The organization's spending efficiency appears very high, particularly in recent years, with expenses being a small fraction of revenue. The absence of reported officer compensation across all filings suggests a volunteer-driven leadership or that compensation is covered by another entity, which contributes to low administrative overhead. However, without a detailed breakdown of program vs. administrative vs. fundraising expenses, it's challenging to fully assess the allocation of its minimal spending. The consistent growth in assets, despite varying revenue, points to effective asset management and financial stability.
Transparency is generally good given the consistent filing of IRS Form 990s. The lack of reported officer compensation is a notable point for transparency, indicating either a fully volunteer board or that compensation is not directly reported on the 990. Further detail on the nature of its program activities and how the minimal expenses are allocated would enhance understanding of its operational efficiency and impact.