Is Insurance Information Institute Inc Legit?

Quick charity verification for Insurance Information Institute Inc (EIN: 131912455)

Verdict: Insurance Information Institute Inc shows mixed signals

45/100Mission Score

$5.9MRevenue

$236KAssets

5Red Flags

2Strengths

Red Flags

Consistent and significant operating deficits (e.g., $2.5M deficit in 2023).
Dramatic decline in total assets (from $18.3M in 2015 to $0.15M in 2023).
Increasing liabilities in recent years ($3.77M in 2023 from $0.04M in 2021).
Declining revenue trend over the past decade.
Negative net assets in recent periods (Liabilities $3.77M vs Assets $0.15M in 2023).

Strengths

Consistent reporting of 0% officer compensation, indicating transparency in executive pay.
Long filing history (13 filings), suggesting consistent compliance with IRS reporting requirements.

Spending Breakdown

How Insurance Information Institute Inc allocates its funds across programs, administration, and fundraising.

70%

Program Spending

Below average — room for improvement

20%

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 Insurance Information Institute Inc

Is Insurance Information Institute Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Insurance Information Institute Inc (EIN: 131912455) shows mixed signals. Mission Score: 45/100. 5 red flags identified, 2 strengths noted.

Is Insurance Information Institute Inc a good charity to donate to?

Insurance Information Institute Inc has a Mission Score of 45/100. Revenue: $5.9M. Assets: $236K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Insurance Information Institute Inc?

The Employer Identification Number (EIN) for Insurance Information Institute Inc is 131912455. 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 Insurance Information Institute Inc spend its money?

Insurance Information Institute Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Insurance Information Institute Inc's tax-exempt status?

You can verify Insurance Information Institute Inc's tax-exempt status using EIN 131912455 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 Insurance Information Institute Inc. (III) has experienced a notable decline in revenue and a consistent pattern of operating deficits over the past several years. In 2023, the organization reported revenue of $6,096,354 against expenses of $8,613,151, resulting in a significant deficit. This trend is not isolated, as expenses have exceeded revenue in most recent periods, including 2022 ($8,781,238 expenses vs. $6,750,004 revenue) and 2021 ($9,579,418 expenses vs. $7,552,043 revenue). This sustained operational shortfall raises concerns about the long-term financial sustainability of the organization.

Furthermore, the organization's asset base has significantly eroded, plummeting from a high of $18,319,696 in 2015 to just $153,281 in 2023. Concurrently, liabilities have shown volatility, reaching $3,773,931 in 2023, which is a substantial increase from $42,767 in 2021. The combination of declining assets and increasing liabilities, particularly in recent years, indicates a deteriorating financial position. The consistent reporting of 0% officer compensation across all available filings suggests a degree of transparency regarding executive pay, though the overall financial health warrants closer scrutiny.

Given the consistent operating deficits and the sharp decline in assets, the organization's financial health appears precarious. While the absence of reported officer compensation is a positive transparency indicator, the significant and sustained financial losses, coupled with a shrinking asset base and rising liabilities, suggest a need for strategic financial restructuring to ensure future viability. The organization's ability to cover its expenses and maintain its mission with such financial trends is a primary concern.

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Disclaimer

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