Quick charity verification for James R Watts Trust (EIN: 201585269)
Verdict: James R Watts Trust shows mixed signals
45/100Mission Score
$32KRevenue
$158KAssets
4Red Flags
2Strengths
Red Flags
Consistent decline in assets over the past decade, from $269,799 in 2011 to $162,720 in 2022.
Expenses consistently exceed revenue in most reported periods, indicating financial unsustainability.
Negative revenue reported in 2022 ($-94), which is highly unusual and concerning.
Lack of detailed expense breakdown (program, admin, fundraising) in the provided summary data makes full efficiency assessment difficult.
Strengths
Reports 0% officer compensation across all filings, indicating no executive salaries are paid.
Consistent filing of IRS Form 990s, demonstrating compliance with reporting requirements.
Spending Breakdown
How James R Watts Trust allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
20%
Admin Costs
Reasonable — admin costs in check
0%
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 James R Watts Trust
Is James R Watts Trust a legitimate charity?
Based on AI analysis of IRS 990 filings, James R Watts Trust (EIN: 201585269) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
Is James R Watts Trust a good charity to donate to?
James R Watts Trust has a Mission Score of 45/100. Revenue: $32K. Assets: $158K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for James R Watts Trust?
The Employer Identification Number (EIN) for James R Watts Trust is 201585269. 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 James R Watts Trust spend its money?
James R Watts Trust allocates 80% to programs, 20% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify James R Watts Trust's tax-exempt status?
You can verify James R Watts Trust's tax-exempt status using EIN 201585269 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 James R Watts Trust, operating in Paducah, KY, appears to be a small private foundation or trust given its NTEE code B82 (Private Grantmaking Foundations) and consistent low revenue figures. Its financial health shows a concerning trend of declining assets over the past decade, from $269,799 in 2011 to $162,720 in 2022. This decline is largely due to expenses consistently exceeding revenue in most reported periods, with a notable negative revenue of $-94 in 2022. The organization's spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which are not provided in the summary data. However, the consistent lack of officer compensation suggests a volunteer-driven or minimally staffed operation, which can be a positive indicator for efficiency in some contexts.
The trust's transparency is moderate. While it files its IRS Form 990s, the provided data lacks the granular detail needed to fully understand its operational spending. The consistent reporting of $1 in liabilities across multiple years is unusual and warrants further investigation into the nature of these liabilities. The absence of officer compensation is a transparent fact, indicating that no salaries are paid to executives, which is common for smaller trusts or foundations.
Overall, the James R Watts Trust exhibits financial instability due to its consistent net losses and declining asset base. While it appears to operate without executive compensation, the lack of detailed expense categories makes a comprehensive assessment of spending efficiency challenging. Its transparency is adequate for a small entity, but the financial trends suggest a need for strategic review to ensure long-term viability.