Is Luke Charitable Foundation Legit?

Quick charity verification for Luke Charitable Foundation (EIN: 202597824)

Verdict: Luke Charitable Foundation shows mixed signals

55/100Mission Score

$94KRevenue

$4.6MAssets

3Red Flags

3Strengths

Red Flags

Consistent operational deficits (e.g., $202,079 in 202312, $197,197 in 202212).
Reliance on asset depletion to cover expenses, leading to a declining asset base.
Revenue consistently less than 50% of expenses in recent years.

Strengths

Zero officer compensation reported across all filings, indicating strong governance regarding executive pay.
Very low liabilities, suggesting no significant debt burden.
Substantial asset base ($4,403,901 in 202312) provides a buffer, though it is being drawn down.

Spending Breakdown

How Luke Charitable Foundation allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Luke Charitable Foundation

Is Luke Charitable Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Luke Charitable Foundation (EIN: 202597824) shows mixed signals. Mission Score: 55/100. 3 red flags identified, 3 strengths noted.

Is Luke Charitable Foundation a good charity to donate to?

Luke Charitable Foundation has a Mission Score of 55/100. Revenue: $94K. Assets: $4.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Luke Charitable Foundation?

The Employer Identification Number (EIN) for Luke Charitable Foundation is 202597824. 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 Luke Charitable Foundation spend its money?

Luke Charitable Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Luke Charitable Foundation's tax-exempt status?

You can verify Luke Charitable Foundation's tax-exempt status using EIN 202597824 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

The Luke Charitable Foundation exhibits a concerning financial trend of consistently spending significantly more than it generates in revenue. In the latest filing (202312), the organization reported revenue of $97,484 against expenses of $299,563, indicating a deficit of over $200,000. This pattern is not isolated, as similar deficits are observed in previous years, such as 202212 (revenue $97,768, expenses $294,965) and 202112 (revenue $95,467, expenses $285,314). While the organization maintains substantial assets, reported at $4,403,901 in 202312, these assets appear to be slowly diminishing over time (e.g., $4,556,091 in 202212, $4,778,708 in 201512), suggesting that the deficits are being covered by drawing down reserves rather than sustainable operations. The consistent reporting of $1 in liabilities across recent years indicates minimal debt, which is a positive, but the long-term viability is questionable given the persistent operational losses.

The organization's transparency is generally good, with 10 filings available, and the consistent reporting of 0% officer compensation is a strong indicator of responsible governance regarding executive pay. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories, it's challenging to fully assess spending efficiency. The NTEE code T21 (Private Grantmaking Foundations) suggests its primary activity is making grants, which typically involves lower administrative overhead compared to direct service organizations. The lack of significant fundraising revenue relative to expenses also raises questions about its funding model and reliance on endowment drawdowns.

Overall, while the foundation demonstrates transparency in its filings and prudent executive compensation, its financial health is precarious due to chronic operational deficits. The reliance on asset depletion to cover expenses is not sustainable and warrants closer examination of its grantmaking strategy and financial management practices to ensure its long-term ability to fulfill its mission.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.