Is Herbert L Brooks Housing Development Fund Company Inc Legit?
Quick charity verification for Herbert L Brooks Housing Development Fund Company Inc (EIN: 133595749)
Verdict: Herbert L Brooks Housing Development Fund Company Inc appears trustworthy
75/100Mission Score
$1.8MRevenue
$5.0MAssets
2Red Flags
3Strengths
Red Flags
Consistently high liabilities exceeding assets, leading to negative net assets in all reported periods (e.g., $4,664,989 assets vs. $8,029,390 liabilities in 2023).
0% officer compensation reported across all 13 filings, which may obscure true administrative costs or leadership structure.
Strengths
Significant revenue growth in recent years, from $513,142 in 2020 to $1,953,236 in 2023.
Positive operating margins in the last three reported periods (2021-2023), indicating expenses are well-managed relative to revenue.
Consistent filing history (13 filings), demonstrating commitment to transparency through regular IRS reporting.
Spending Breakdown
How Herbert L Brooks Housing Development Fund Company Inc 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 Herbert L Brooks Housing Development Fund Company Inc
Is Herbert L Brooks Housing Development Fund Company Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Herbert L Brooks Housing Development Fund Company Inc (EIN: 133595749) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is Herbert L Brooks Housing Development Fund Company Inc a good charity to donate to?
Herbert L Brooks Housing Development Fund Company Inc has a Mission Score of 75/100. Revenue: $1.8M. Assets: $5.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Herbert L Brooks Housing Development Fund Company Inc?
The Employer Identification Number (EIN) for Herbert L Brooks Housing Development Fund Company Inc is 133595749. 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 Herbert L Brooks Housing Development Fund Company Inc spend its money?
Herbert L Brooks Housing Development Fund Company Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Herbert L Brooks Housing Development Fund Company Inc's tax-exempt status?
You can verify Herbert L Brooks Housing Development Fund Company Inc's tax-exempt status using EIN 133595749 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
Herbert L Brooks Housing Development Fund Company Inc demonstrates a consistent operational history, with revenue showing significant growth in recent years, from $513,142 in 2020 to $1,953,236 in 2023. This growth outpaced expenses, leading to positive net income in the last three reported periods. The organization's assets have remained relatively stable, hovering around $4-5 million, while liabilities are consistently high, exceeding $7.8 million across all reported periods. This indicates a significant reliance on debt or long-term obligations, which is common for housing development funds but warrants closer examination of the nature of these liabilities.
Spending efficiency appears to be improving, with expenses in 2023 ($1,488,929) being significantly lower than revenue ($1,953,236), suggesting a healthy operating margin. The consistent reporting of 0% officer compensation across all filings indicates either a volunteer-led executive team or compensation being reported under other expense categories, which could impact transparency regarding leadership costs. Given the nature of a Housing Development Fund Company, a significant portion of expenses would typically be program-related, but without a detailed breakdown of expenses, a precise assessment of program spending efficiency is limited.
Transparency is generally good through its consistent filing of IRS Form 990s over 13 periods. However, the lack of reported officer compensation could be a point of inquiry for stakeholders seeking a full picture of administrative costs. The high and consistent liabilities, while potentially normal for its NTEE code (L20Z - Housing Development, Construction & Management), would benefit from further clarification in public disclosures to fully understand the organization's financial structure and long-term solvency.