Is Iron Sharpens Iron Ministries Inc Legit?

Quick charity verification for Iron Sharpens Iron Ministries Inc (EIN: 200727122)

Verdict: Iron Sharpens Iron Ministries Inc appears trustworthy

85/100Mission Score

$1.9MRevenue

$1.9MAssets

1Red Flags

4Strengths

Red Flags

Consistent 0% officer compensation reported, which is unusual for an organization of this revenue size and warrants further investigation into executive compensation practices.

Strengths

Strong and consistent revenue growth, particularly in recent years, from $264,441 in 2019 to $1,603,801 in 2023.
Healthy asset accumulation, growing from $269,925 in 2019 to $1,719,440 in 2023.
Low liabilities relative to assets and revenue, indicating good financial management and low financial risk.
Consistent surplus of revenue over expenses in recent years, allowing for reinvestment and reserve building (e.g., $1,603,801 revenue vs. $1,216,085 expenses in 2023).

Spending Breakdown

How Iron Sharpens Iron Ministries Inc allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

10%

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 Iron Sharpens Iron Ministries Inc

Is Iron Sharpens Iron Ministries Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Iron Sharpens Iron Ministries Inc (EIN: 200727122) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.

Is Iron Sharpens Iron Ministries Inc a good charity to donate to?

Iron Sharpens Iron Ministries Inc has a Mission Score of 85/100. Revenue: $1.9M. Assets: $1.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Iron Sharpens Iron Ministries Inc?

The Employer Identification Number (EIN) for Iron Sharpens Iron Ministries Inc is 200727122. 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 Ministries Inc spend its money?

Iron Sharpens Iron Ministries Inc allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Iron Sharpens Iron Ministries Inc's tax-exempt status?

You can verify Iron Sharpens Iron Ministries Inc's tax-exempt status using EIN 200727122 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 Ministries Inc demonstrates strong financial health and growth, with its latest reported revenue at $1,914,851 and assets at $1,868,888. The organization has shown consistent revenue growth over the past several years, notably increasing from $454,271 in 2021 to $1,603,801 in 2023. This growth is accompanied by a healthy asset base and relatively low liabilities, indicating good financial management and stability. The organization's transparency is commendable, particularly with 0% reported officer compensation across all available filings, which suggests a volunteer-driven leadership or that compensation is covered by other means not reported as officer compensation on the 990, which warrants further investigation for complete transparency. The consistent surplus of revenue over expenses in recent years (e.g., $1,603,801 revenue vs. $1,216,085 expenses in 2023) allows for reinvestment into its mission and building reserves.

While the overall financial picture is positive, a detailed breakdown of program, administrative, and fundraising expenses is not explicitly provided in the summary data, making a precise assessment of spending efficiency challenging without the full 990 forms. However, the significant difference between revenue and expenses in recent years, such as the $842,869 surplus in 2022 ($1,419,032 revenue - $576,163 expenses), suggests that a substantial portion of funds is available for programmatic activities or building reserves. The consistent growth in assets also points to effective resource accumulation.

Given the available data, Iron Sharpens Iron Ministries Inc appears to be a financially sound organization with a clear growth trajectory. The absence of reported officer compensation is a notable aspect of its financial structure, potentially indicating a high degree of volunteerism or alternative compensation structures. For a complete understanding of spending efficiency, a deeper dive into the functional expense allocation within the full 990 filings would be beneficial.

View Full Transparency Report →

Disclaimer

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