Is Lutheran Home Winston Salem Property Inc…

Quick charity verification for Lutheran Home Winston Salem Property Inc (EIN: 205304794)

Red Flags

Consistent operational deficits: Expenses frequently exceed revenue (e.g., $539,484 expenses vs. $370,000 revenue in 202309).
Significant decline in assets: Assets have fallen from $24.8M in 2014 to $6.4M in 2023.
Liabilities exceeding assets: In recent years, liabilities have been greater than assets, indicating potential solvency issues (e.g., $8,299,780 liabilities vs. $6,469,532 assets in 202309).
Negative revenue reported in 201609 ($-360,850), which is highly unusual and warrants investigation.
Unknown NTEE code, which limits understanding of its specific mission and impact area.

Spending Breakdown

How Lutheran Home Winston Salem Property 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 Lutheran Home Winston Salem Property Inc

Is Lutheran Home Winston Salem Property Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Lutheran Home Winston Salem Property Inc (EIN: 205304794) has notable concerns. Mission Score: 35/100. 5 red flags identified, 1 strength noted.

Is Lutheran Home Winston Salem Property Inc a good charity to donate to?

Lutheran Home Winston Salem Property Inc has a Mission Score of 35/100. Revenue: $384K. Assets: $6.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Lutheran Home Winston Salem Property Inc?

The Employer Identification Number (EIN) for Lutheran Home Winston Salem Property Inc is 205304794. 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 Lutheran Home Winston Salem Property Inc spend its money?

Lutheran Home Winston Salem Property Inc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Lutheran Home Winston Salem Property Inc's tax-exempt status?

You can verify Lutheran Home Winston Salem Property Inc's tax-exempt status using EIN 205304794 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

Lutheran Home Winston Salem Property Inc. exhibits a concerning financial trend, consistently operating at a deficit over the past several years. In the latest filing (202309), expenses of $539,484 significantly outstripped revenue of $370,000, continuing a pattern seen in previous periods where expenses frequently exceeded revenue. This sustained operational deficit has led to a notable decline in assets, from $24,847,151 in 201409 to $6,469,532 in 202309, while liabilities have remained substantial, often exceeding assets in recent years, indicating potential solvency issues. The organization's NTEE code is unknown, which can sometimes hinder a clear understanding of its specific programmatic focus and impact.

The organization's transparency regarding executive compensation is strong, with 0% reported officer compensation across all available filings, suggesting that leadership is not drawing a salary from the organization. However, the consistent and significant negative net income raises questions about the long-term sustainability of its operations and how it plans to address these financial shortfalls. Without a detailed breakdown of expenses into program, administrative, and fundraising categories in the provided data, it's challenging to fully assess spending efficiency, though the overall financial picture suggests a need for significant operational adjustments to achieve financial stability.

The consistent decline in assets coupled with high liabilities, particularly in recent years where liabilities ($8,299,780 in 202309) have surpassed assets ($6,469,532), points to a precarious financial position. While the lack of officer compensation is a positive transparency indicator, the fundamental financial health of the organization appears to be deteriorating, necessitating a closer look at its revenue generation strategies and expense management.

Is Lutheran Home Winston Salem Property Inc Legit?

Verdict: Lutheran Home Winston Salem Property Inc has notable concerns