Quick charity verification for Khan Foundation Inc (EIN: 200461026)
Verdict: Khan Foundation Inc appears trustworthy
75/100Mission Score
$8.9MRevenue
$6.4MAssets
2Red Flags
3Strengths
Red Flags
No reported officer compensation across all filings, which could indicate a lack of transparency regarding executive remuneration or an unusual operational model.
Significant fluctuations in annual revenue and expenses, making consistent financial planning and performance difficult to assess without further context.
Strengths
Consistent asset growth from $3.5M in 2011 to over $6.2M in 2023, indicating long-term financial stability.
Minimal liabilities reported across all filings ($0 or $1), suggesting strong financial management and low debt burden.
Strong financial position in 2022 with revenues of $7,242,371 significantly exceeding expenses of $3,949,356, building reserves.
Spending Breakdown
How Khan Foundation Inc allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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 Khan Foundation Inc
Is Khan Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Khan Foundation Inc (EIN: 200461026) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is Khan Foundation Inc a good charity to donate to?
Khan Foundation Inc has a Mission Score of 75/100. Revenue: $8.9M. Assets: $6.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Khan Foundation Inc?
The Employer Identification Number (EIN) for Khan Foundation Inc is 200461026. 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 Khan Foundation Inc spend its money?
Khan Foundation Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Khan Foundation Inc's tax-exempt status?
You can verify Khan Foundation Inc's tax-exempt status using EIN 200461026 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
Khan Foundation Inc demonstrates a fluctuating financial performance over the past decade, with recent years showing significant revenue and expense figures. In 2023, the organization reported revenues of $3,522,382 against expenses of $3,699,169, indicating a slight deficit for the year. However, the prior year (2022) saw a substantial surplus with revenues of $7,242,371 against expenses of $3,949,356. The organization consistently reports minimal liabilities ($1 or $0) across all filings, suggesting a healthy balance sheet and low financial risk. Assets have grown significantly from $3,558,386 in 2011 to $6,233,161 in 2023, indicating long-term financial stability.
The absence of reported officer compensation across all ten filings is a notable aspect of its financial transparency. While this could indicate a fully volunteer-led executive team, it warrants further investigation to understand how leadership is compensated, if at all, or if these roles are truly unpaid. The NTEE code T20 (Philanthropy, Voluntarism, and Grantmaking Foundations) suggests its primary activities involve grantmaking, which typically involves distributing funds to other organizations rather than direct program delivery, influencing how 'program spending' might be interpreted.
Overall, Khan Foundation Inc appears to be financially stable with growing assets and a history of managing liabilities effectively. The lack of reported officer compensation is a significant point for transparency, potentially indicating strong volunteer commitment or an alternative compensation structure not captured in this specific line item. Its spending efficiency would depend on the effectiveness of its grantmaking activities, which cannot be fully assessed from these high-level financial figures alone.