Quick charity verification for Liberty House Inc (EIN: 20469770)
Verdict: Liberty House Inc shows mixed signals
65/100Mission Score
$352KRevenue
$0Assets
3Red Flags
2Strengths
Red Flags
Reported $0 in assets in 2019 after reporting $657,883 in 2018, indicating a significant and unexplained financial shift.
Expenses ($376,816) exceeded revenue ($352,286) in the latest filing period (2019), resulting in a deficit.
Significant year-over-year fluctuations in revenue and assets suggest potential instability or inconsistent financial management.
Strengths
Consistently reports 0% officer compensation across all available filings, indicating efficient use of funds at the executive level.
Has demonstrated periods of strong revenue generation, such as $619,076 in 2018 and $686,170 in 2016.
Spending Breakdown
How Liberty House Inc allocates its funds across programs, administration, and fundraising.
75%
Program Spending
Healthy — majority goes to mission
15%
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 Liberty House Inc
Is Liberty House Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Liberty House Inc (EIN: 20469770) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 2 strengths noted.
Is Liberty House Inc a good charity to donate to?
Liberty House Inc has a Mission Score of 65/100. Revenue: $352K. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Liberty House Inc?
The Employer Identification Number (EIN) for Liberty House Inc is 20469770. 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 Liberty House Inc spend its money?
Liberty House Inc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Liberty House Inc's tax-exempt status?
You can verify Liberty House Inc's tax-exempt status using EIN 20469770 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
Liberty House Inc. demonstrates a fluctuating financial performance over the past several years. In 2019, the organization reported revenue of $352,286 against expenses of $376,816, indicating a deficit for the year. This contrasts with 2018, where revenue of $619,076 significantly exceeded expenses of $484,187, leading to a surplus. The organization's assets have also seen considerable variation, dropping from $657,883 in 2018 to $0 in 2019, which is a significant concern requiring further investigation into asset management and reporting.
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 reporting of 0% officer compensation across all available periods suggests a commitment to minimizing executive overhead, which is a positive indicator for donor confidence. The lack of reported assets in the latest filing is a major red flag that could impact long-term stability.
Transparency appears to be reasonable given the public availability of their 990 filings. However, the dramatic shift in reported assets from 2018 to 2019 warrants a deeper look into the organization's financial statements to understand the underlying reasons. Overall, while the organization has shown periods of strong revenue generation, the recent financial data, particularly the asset situation, raises questions about its current financial health and sustainability.