Is Hopexchange Inc Legit?

Quick charity verification for Hopexchange Inc (EIN: 204643206)

Verdict: Hopexchange Inc appears trustworthy

75/100Mission Score
$1.4MRevenue
$133KAssets
3Red Flags
3Strengths

Red Flags

Strengths

Spending Breakdown

How Hopexchange Inc allocates its funds across programs, administration, and fundraising.

80%
Program Spending
Healthy — majority goes to mission
10%
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 Hopexchange Inc

Is Hopexchange Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Hopexchange Inc (EIN: 204643206) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.

Is Hopexchange Inc a good charity to donate to?

Hopexchange Inc has a Mission Score of 75/100. Revenue: $1.4M. Assets: $133K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Hopexchange Inc?

The Employer Identification Number (EIN) for Hopexchange Inc is 204643206. 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 Hopexchange Inc spend its money?

Hopexchange Inc allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Hopexchange Inc's tax-exempt status?

You can verify Hopexchange Inc's tax-exempt status using EIN 204643206 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

Hopexchange Inc demonstrates inconsistent financial performance over the past decade, with significant fluctuations in both revenue and expenses. For instance, revenue jumped from $37,042 in 2017 to $1,292,964 in 2018, and then decreased to $559,569 in 2019 before rising again. The latest filing (202306) shows expenses ($1,433,314) exceeding revenue ($1,064,962), resulting in a deficit for that period. This pattern of revenue volatility and occasional deficits suggests potential challenges in maintaining stable operations or funding. The organization's asset base has also varied considerably, from a low of $136,614 in 2023 to a high of $484,381 in 2022. The current asset level of $132,801 is relatively low compared to its latest annual expenses, which could indicate limited reserves for future operations or unexpected needs. A notable positive is the consistent reporting of 0% officer compensation across all available filings, which speaks to a commitment to direct resources towards the mission rather than executive salaries. While the lack of officer compensation is a strong indicator of financial prudence at the leadership level, the overall financial health is impacted by the revenue instability and the recent operating deficit. Further analysis of the functional expense breakdown (program, administrative, fundraising) would be necessary to fully assess spending efficiency, as this data is not provided in the summary. However, the consistent lack of executive compensation suggests a focus on minimizing overhead in that area.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.

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