Significant year-over-year revenue volatility (e.g., $90M in 2022 to $28M in 2023) without clear explanation in public filings.
Expenses frequently exceeding revenue, potentially drawing down reserves if not balanced by other income or asset growth.
Strengths
Strong program spending ratio, indicating a high percentage of funds directly supporting its mission.
Significant growth in assets from $4 million in 2019 to over $16 million in 2023, demonstrating increased capacity.
Long history of IRS 990 filings (14 filings), indicating consistent compliance and operational longevity.
Spending Breakdown
How Impact Community Action allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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 Impact Community Action
Is Impact Community Action a legitimate charity?
Based on AI analysis of IRS 990 filings, Impact Community Action (EIN: 205536173) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is Impact Community Action a good charity to donate to?
Impact Community Action has a Mission Score of 75/100. Revenue: $26.2M. Assets: $16.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Impact Community Action?
The Employer Identification Number (EIN) for Impact Community Action is 205536173. 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 Impact Community Action spend its money?
Impact Community Action allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Impact Community Action's tax-exempt status?
You can verify Impact Community Action's tax-exempt status using EIN 205536173 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
Impact Community Action demonstrates significant financial fluctuations over the past few years, with revenue peaking at over $90 million in 2022 and then dropping to $28 million in 2023. This volatility, while potentially tied to grant cycles or specific program funding, warrants closer examination to understand its operational impact and sustainability. The organization consistently reports 0% officer compensation, which is unusual for an organization of this size and revenue, suggesting that executive compensation might be reported under other categories or that the top leadership is compensated through a related entity, which could be a transparency concern. Their asset base has grown substantially from $4 million in 2019 to over $16 million in 2023, indicating growth in capacity, though liabilities have also increased proportionally.
Spending efficiency appears to be strong in terms of program delivery, as indicated by the high program spending ratio. However, the lack of reported officer compensation on the 990s is a significant red flag for transparency. While the organization manages substantial funds, the absence of this key compensation data makes it difficult to fully assess administrative overhead and leadership accountability. The consistent reporting of expenses closely matching or slightly exceeding revenue in most years suggests a lean operational model, but also limited accumulation of unrestricted net assets for future stability.
Overall, Impact Community Action appears to be effective in deploying its resources for programs, given the high program spending. However, the transparency around executive compensation is a notable area for improvement. The dramatic swings in revenue and expenses also suggest a need for clear explanations regarding funding sources and program scale to fully understand the organization's long-term financial health and strategic planning.