Quick charity verification for Long Way Home (EIN: 201384232)
Verdict: Long Way Home shows mixed signals
45/100Mission Score
$317KRevenue
$302KAssets
3Red Flags
2Strengths
Red Flags
Consistent operational deficits (e.g., 2023: $238,980 revenue vs. $253,724 expenses; 2022: $204,006 revenue vs. $373,416 expenses).
Significant and rapidly increasing liabilities, from $33,283 in 2019 to $358,548 in 2023, indicating potential financial instability.
Liabilities ($358,548 in 2023) exceeding total assets ($273,385 in 2023), suggesting a negative net asset position.
Strengths
Zero officer compensation reported across all available filings, indicating efficient use of funds at the executive level.
Long filing history (13 filings), suggesting consistent compliance with IRS reporting requirements.
Spending Breakdown
How Long Way Home 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 Long Way Home
Is Long Way Home a legitimate charity?
Based on AI analysis of IRS 990 filings, Long Way Home (EIN: 201384232) shows mixed signals. Mission Score: 45/100. 3 red flags identified, 2 strengths noted.
Is Long Way Home a good charity to donate to?
Long Way Home has a Mission Score of 45/100. Revenue: $317K. Assets: $302K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Long Way Home?
The Employer Identification Number (EIN) for Long Way Home is 201384232. 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 Long Way Home spend its money?
Long Way Home allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Long Way Home's tax-exempt status?
You can verify Long Way Home's tax-exempt status using EIN 201384232 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
Long Way Home demonstrates a consistent operational deficit over the past several years, with expenses frequently exceeding revenue. For instance, in 2023, expenses were $253,724 against revenues of $238,980, and in 2022, expenses were $373,416 compared to $204,006 in revenue. This trend has led to a significant increase in liabilities, which stood at $358,548 in 2023, nearly matching their total assets of $273,385. While the organization reports 0% officer compensation, which is a positive for donor confidence in executive pay, the overall financial stability is concerning due to the persistent spending exceeding income.
The organization's financial health appears precarious given the growing liabilities and consistent net losses. The latest revenue of $317,075 is an improvement from previous years' revenues, but it's crucial to understand if this trend is sustainable and if it will be sufficient to cover their historical expense levels and reduce the substantial liabilities. Without a clear breakdown of program, administrative, and fundraising expenses, it's challenging to fully assess spending efficiency, but the overall financial trajectory suggests a need for tighter fiscal management or increased revenue generation to achieve long-term sustainability.
Transparency regarding executive compensation is excellent, with 0% reported. However, the lack of detailed expense breakdowns in the provided data limits a full assessment of spending efficiency across different categories. The significant increase in liabilities from $33,283 in 2019 to $358,548 in 2023 is a major concern, indicating potential financial strain or reliance on debt to cover operational costs. This trend warrants closer scrutiny to understand the underlying causes and the organization's plan to address these financial challenges.