Quick charity verification for Horlacher Foundation Inc (EIN: 202777772)
Verdict: Horlacher Foundation Inc shows mixed signals
60/100Mission Score
$328KRevenue
$2.5MAssets
3Red Flags
3Strengths
Red Flags
Consistent operating deficits: Expenses have significantly exceeded revenue in recent years (e.g., $196,905 expenses vs. $19,944 revenue in 2023).
Declining asset base: Assets have decreased from $2,872,531 in 2020 to $2,522,593 in 2023, indicating a draw-down of reserves.
Significant revenue volatility: Revenue has fluctuated wildly, from $808,202 in 2020 to $19,944 in 2023, making financial planning challenging.
Strengths
No reported officer compensation: 0% officer compensation across all filings indicates efficient use of funds by minimizing executive salary overhead.
Substantial asset base: Despite recent declines, the foundation still holds over $2.5 million in assets, providing a buffer for operations.
Consistent IRS 990 filing history: The organization has a history of filing its IRS 990s, indicating a commitment to transparency.
Spending Breakdown
How Horlacher 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 Horlacher Foundation Inc
Is Horlacher Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Horlacher Foundation Inc (EIN: 202777772) shows mixed signals. Mission Score: 60/100. 3 red flags identified, 3 strengths noted.
Is Horlacher Foundation Inc a good charity to donate to?
Horlacher Foundation Inc has a Mission Score of 60/100. Revenue: $328K. Assets: $2.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Horlacher Foundation Inc?
The Employer Identification Number (EIN) for Horlacher Foundation Inc is 202777772. 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 Horlacher Foundation Inc spend its money?
Horlacher Foundation Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Horlacher Foundation Inc's tax-exempt status?
You can verify Horlacher Foundation Inc's tax-exempt status using EIN 202777772 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 Horlacher Foundation Inc. appears to be a grant-making organization, as indicated by its NTEE code T23 (Private Grantmaking Foundations). Its financial health shows a concerning trend of declining assets and consistent operating deficits in recent years. For instance, in 2023, the organization reported revenue of $19,944 against expenses of $196,905, resulting in a significant deficit. This pattern of expenses exceeding revenue has been consistent since 2021, with assets decreasing from $2,812,431 in 2021 to $2,522,593 in 2023. While the foundation holds substantial assets relative to its recent revenue, the sustained decline in assets and negative operating margins suggest a need for careful financial management to ensure long-term sustainability.
The organization's spending efficiency is difficult to fully assess without a detailed breakdown of expenses into program, administrative, and fundraising categories, which is not provided in the summary data. However, the consistent operational deficits, where expenses significantly outstrip revenue, raise questions about the efficiency of resource utilization. The absence of reported officer compensation across all filings indicates a potential strength in minimizing overhead related to executive salaries, which is positive for donor confidence. Transparency appears to be adequate in terms of filing its IRS 990s consistently, but a deeper dive into the actual program expenditures would be necessary for a complete assessment of its impact and efficiency.