Quick charity verification for Highlands Foundation Inc (EIN: 203941123)
Verdict: Highlands Foundation Inc shows mixed signals
45/100Mission Score
$1.4MRevenue
$5.7MAssets
4Red Flags
2Strengths
Red Flags
Significant and consistent operational deficits in recent years (e.g., $10.1M deficit in 2023, $6M deficit in 2021).
Dramatic decline in assets from over $22M in 2020 to $6M in 2023, likely due to covering deficits.
Unusual consistent reporting of $1 in liabilities across multiple recent filings.
Lack of reported officer compensation, which can obscure leadership costs and transparency.
Strengths
Historically maintained substantial asset base, though currently declining.
No reported officer compensation, potentially indicating a volunteer-driven leadership structure.
Spending Breakdown
How Highlands Foundation 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 Highlands Foundation Inc
Is Highlands Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Highlands Foundation Inc (EIN: 203941123) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
Is Highlands Foundation Inc a good charity to donate to?
Highlands Foundation Inc has a Mission Score of 45/100. Revenue: $1.4M. Assets: $5.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Highlands Foundation Inc?
The Employer Identification Number (EIN) for Highlands Foundation Inc is 203941123. 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 Highlands Foundation Inc spend its money?
Highlands Foundation Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Highlands Foundation Inc's tax-exempt status?
You can verify Highlands Foundation Inc's tax-exempt status using EIN 203941123 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
Highlands Foundation Inc. exhibits significant volatility in its financial operations, particularly in recent years. In 2023, the organization reported revenue of $360,785 against expenses of $10,463,248, indicating a substantial deficit. This trend of expenses far exceeding revenue is also evident in 2022 ($169,817 revenue vs. $829,954 expenses) and 2021 ($1,089,528 revenue vs. $7,073,241 expenses). While the organization maintained substantial assets, peaking at over $22 million in 2020, these have seen a sharp decline to $6,075,218 by 2023. The consistent reporting of $1 in liabilities across multiple recent filings is unusual and may warrant further scrutiny regarding financial reporting practices or could indicate a specific accounting method for nominal liabilities.
The organization's spending efficiency is difficult to assess without a detailed functional expense breakdown, which is not provided in the summary data. However, the large and consistent deficits suggest that current operational models are not sustainable without significant external funding or asset liquidation. The absence of reported officer compensation across all filings suggests either a fully volunteer-led executive team or that compensation is reported under other expense categories, which could impact transparency regarding leadership costs. The dramatic fluctuations in assets and the large deficits raise questions about long-term financial stability and the source of funding for these deficits.