Quick charity verification for La Nueva Esperanza (EIN: 204393724)
Verdict: La Nueva Esperanza appears trustworthy
85/100Mission Score
$1.9MRevenue
$800KAssets
2Red Flags
4Strengths
Red Flags
Expenses exceeded revenue in the most recent 2024 filing, indicating a deficit for that period.
Consistent 0% officer compensation is unusual for an organization of this size and warrants further investigation into how leadership is compensated or if it is entirely volunteer-run.
Strengths
Consistent revenue generation and growth over the past decade, from $1,097,675 in 2015 to $1,831,368 in 2024.
Significant asset growth, from $176,316 in 2015 to $762,135 in 2024, indicating financial stability and resource accumulation.
Long and consistent filing history (14 filings), demonstrating transparency and compliance.
Reported 0% officer compensation across all filings, suggesting high potential for program efficiency or volunteer leadership.
Spending Breakdown
How La Nueva Esperanza 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 La Nueva Esperanza
Is La Nueva Esperanza a legitimate charity?
Based on AI analysis of IRS 990 filings, La Nueva Esperanza (EIN: 204393724) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is La Nueva Esperanza a good charity to donate to?
La Nueva Esperanza has a Mission Score of 85/100. Revenue: $1.9M. Assets: $800K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for La Nueva Esperanza?
The Employer Identification Number (EIN) for La Nueva Esperanza is 204393724. 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 La Nueva Esperanza spend its money?
La Nueva Esperanza allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify La Nueva Esperanza's tax-exempt status?
You can verify La Nueva Esperanza's tax-exempt status using EIN 204393724 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
La Nueva Esperanza demonstrates consistent operational activity with revenues generally exceeding expenses over the past decade, indicating a stable financial foundation. For instance, in 2023, the organization reported revenues of $1,915,050 against expenses of $1,706,001, resulting in a surplus. However, the most recent filing (2024) shows expenses of $2,016,104 exceeding revenues of $1,831,368, which warrants monitoring to ensure it's an anomaly rather than a trend. The organization's assets have grown significantly over time, from $176,316 in 2015 to $762,135 in 2024, suggesting prudent financial management and accumulation of resources.
The organization's transparency is bolstered by its consistent filing history of 14 IRS 990 forms, providing a comprehensive public record of its financial activities. A notable strength is the reported 0% officer compensation across all available filings, which suggests that the organization's leadership may be volunteer-based or compensated through other means not categorized as officer compensation, potentially indicating a high dedication to program spending. This practice, if sustained, contributes positively to spending efficiency by minimizing overhead related to executive salaries.
While the detailed breakdown of program, administrative, and fundraising expenses is not explicitly provided in the summary data, the consistent operational surpluses in most years and the absence of reported officer compensation suggest a strong potential for efficient resource allocation towards its mission. The recent deficit in 2024, however, highlights the importance of reviewing the detailed expense categories in the full 990 to understand the drivers and ensure continued financial health and program focus.