Quick charity verification for Kappa House Ii Inc (EIN: 205900728)
Verdict: Kappa House Ii Inc shows mixed signals
45/100Mission Score
$373KRevenue
$3.7MAssets
3Red Flags
2Strengths
Red Flags
Persistent operational deficits (expenses consistently exceed revenue, e.g., $408,700 expenses vs. $372,737 revenue in 2020).
Negative net assets (liabilities consistently exceed assets, e.g., $4,486,905 liabilities vs. $3,687,217 assets in 2020).
Declining asset base over time (from $4,354,746 in 2014 to $3,687,217 in 2020).
Strengths
No officer compensation reported across all filings, indicating efficient use of funds in this area.
Consistent filing of IRS 990 forms, demonstrating transparency in financial reporting.
Spending Breakdown
How Kappa House Ii 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 Kappa House Ii Inc
Is Kappa House Ii Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Kappa House Ii Inc (EIN: 205900728) shows mixed signals. Mission Score: 45/100. 3 red flags identified, 2 strengths noted.
Is Kappa House Ii Inc a good charity to donate to?
Kappa House Ii Inc has a Mission Score of 45/100. Revenue: $373K. Assets: $3.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Kappa House Ii Inc?
The Employer Identification Number (EIN) for Kappa House Ii Inc is 205900728. 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 Kappa House Ii Inc spend its money?
Kappa House Ii Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Kappa House Ii Inc's tax-exempt status?
You can verify Kappa House Ii Inc's tax-exempt status using EIN 205900728 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
Kappa House II Inc. demonstrates a consistent operational deficit over the past several years, with expenses regularly exceeding revenue. For instance, in 2020, expenses were $408,700 against revenues of $372,737, and similar trends are observed in prior years. This ongoing deficit has led to a gradual decline in assets, from $4,354,746 in 2014 to $3,687,217 in 2020, while liabilities have remained high, consistently exceeding assets. The organization's financial health appears strained due to this persistent negative net income.
Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to fully assess. However, the consistent operational losses suggest that current revenue streams are insufficient to cover overall expenditures. The organization reports 0% officer compensation across all filings, which indicates good stewardship in terms of executive pay, but doesn't fully address overall spending efficiency.
Transparency is generally good given the availability of multiple years of IRS 990 filings. However, the significant and persistent negative net assets (liabilities exceeding assets) raise concerns about long-term financial viability and sustainability. The organization's ability to continue its mission may be challenged if these financial trends persist.