Is Investment Adviser Association Legit?

Quick charity verification for Investment Adviser Association (EIN: 136130873)

Verdict: Investment Adviser Association appears trustworthy

75/100Mission Score

$7.2MRevenue

$10.0MAssets

3Red Flags

3Strengths

Red Flags

Consistent operating deficits in recent years (2021-2023), with expenses exceeding revenue.
Significant and rapid increase in liabilities from $1.7M in 2014 to $7.3M in 2023, warranting further scrutiny.
Lack of reported officer compensation (0%) for an organization with over $7M in revenue, which could obscure executive remuneration details.

Strengths

Strong and consistent revenue generation, growing from $4.3M in 2014 to $6.8M in 2023.
Robust asset growth, increasing from $4.7M in 2014 to $10.4M in 2023, providing financial stability.
Long history of IRS 990 filings (13 filings), indicating consistent compliance and transparency in reporting.

Spending Breakdown

How Investment Adviser Association 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 Investment Adviser Association

Is Investment Adviser Association a legitimate charity?

Based on AI analysis of IRS 990 filings, Investment Adviser Association (EIN: 136130873) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.

Is Investment Adviser Association a good charity to donate to?

Investment Adviser Association has a Mission Score of 75/100. Revenue: $7.2M. Assets: $10.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Investment Adviser Association?

The Employer Identification Number (EIN) for Investment Adviser Association is 136130873. 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 Investment Adviser Association spend its money?

Investment Adviser Association allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Investment Adviser Association's tax-exempt status?

You can verify Investment Adviser Association's tax-exempt status using EIN 136130873 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 Investment Adviser Association (IAA) demonstrates consistent financial activity, with revenues and expenses generally increasing over the past decade. In the most recent filing (202312), the organization reported revenues of $6,862,509 against expenses of $7,114,955, indicating a slight operating deficit for the period. This trend of expenses exceeding revenue has been observed in several recent years (2021, 2022, 2023), suggesting a need to monitor financial sustainability, although assets remain robust at over $10 million. The organization's liabilities have also seen a significant increase, from $1,756,897 in 2014 to $7,303,509 in 2023, which warrants further investigation into the nature of these liabilities.

Regarding spending efficiency, without a detailed functional expense breakdown, it's challenging to precisely assess program versus administrative spending. However, the consistent reporting of 0% officer compensation across all filings is a notable aspect of its financial transparency and governance structure, indicating that top executives are not directly compensated through the organization's payroll as officers. This could imply compensation through other means or a volunteer leadership structure, which would require deeper scrutiny for full transparency. The organization's assets have grown steadily, from $4,793,907 in 2014 to $10,400,041 in 2023, providing a strong financial cushion despite recent operating deficits.

Overall, the IAA appears to be a financially stable organization with growing assets, but recent operating deficits and increasing liabilities suggest a need for careful financial management. The lack of reported officer compensation is a unique characteristic that contributes to its transparency profile, though further details on executive remuneration, if any, would enhance understanding. The organization's consistent revenue generation indicates a stable base of support.

View Full Transparency Report →

Disclaimer

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