Quick charity verification for Iron Sharpens Iron Inc (EIN: 208090711)
Verdict: Iron Sharpens Iron Inc shows mixed signals
45/100Mission Score
$251KRevenue
$11KAssets
4Red Flags
1Strengths
Red Flags
High liabilities consistently exceeding assets (e.g., 2023: $257,264 liabilities vs. $33,795 assets)
Declining revenue trend over the past decade (from $897,098 in 2014 to $285,313 in 2023)
Negative net assets in multiple periods due to high liabilities
Significant fluctuations in annual revenue and expenses, indicating potential operational instability
Strengths
0% officer compensation reported across all filings, indicating strong cost control at the executive level.
Spending Breakdown
How Iron Sharpens Iron 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 Iron Sharpens Iron Inc
Is Iron Sharpens Iron Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Iron Sharpens Iron Inc (EIN: 208090711) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 1 strength noted.
Is Iron Sharpens Iron Inc a good charity to donate to?
Iron Sharpens Iron Inc has a Mission Score of 45/100. Revenue: $251K. Assets: $11K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Iron Sharpens Iron Inc?
The Employer Identification Number (EIN) for Iron Sharpens Iron Inc is 208090711. 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 Iron Sharpens Iron Inc spend its money?
Iron Sharpens Iron Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Iron Sharpens Iron Inc's tax-exempt status?
You can verify Iron Sharpens Iron Inc's tax-exempt status using EIN 208090711 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
Iron Sharpens Iron Inc. exhibits a concerning financial trend with persistent liabilities significantly exceeding its assets. For instance, in 2023, assets were $33,795 while liabilities stood at $257,264, indicating a precarious financial position. This pattern of high liabilities relative to assets has been consistent over several years, suggesting potential long-term solvency issues. While the organization has reported 0% officer compensation across all available filings, which is a positive indicator of executive cost control, the overall financial health is weak due to the substantial debt burden. The organization's revenue has also fluctuated significantly, from a high of $897,098 in 2014 to $285,313 in 2023, making consistent financial planning challenging. The lack of detailed expense breakdowns in the provided data makes it difficult to fully assess spending efficiency beyond the overall revenue and expense figures.