Quick charity verification for Magellan Education Foundation Inc (EIN: 203971056)
Verdict: Magellan Education Foundation Inc appears trustworthy
88/100Mission Score
$475KRevenue
$7.5MAssets
2Red Flags
5Strengths
Red Flags
Lack of detailed functional expense breakdown (program, admin, fundraising) in provided data makes precise efficiency assessment difficult.
Consistent 0% officer compensation is unusual for an organization of this asset size and could indicate compensation is reported under other categories or that leadership is entirely volunteer, which might raise questions about sustainability or capacity.
Consistent reporting of 0% officer compensation, suggesting very low or no executive salary burden.
Expenses consistently below revenue in most years, demonstrating sound financial management and sustainability.
Long history of IRS 990 filings (13 filings), indicating a commitment to transparency and compliance.
Low liabilities relative to assets, with liabilities of $4,551,422 against assets of $7,474,445 in 202306, showing a healthy balance sheet.
Spending Breakdown
How Magellan Education Foundation Inc 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 Magellan Education Foundation Inc
Is Magellan Education Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Magellan Education Foundation Inc (EIN: 203971056) appears trustworthy. Mission Score: 88/100. 2 red flags identified, 5 strengths noted.
Is Magellan Education Foundation Inc a good charity to donate to?
Magellan Education Foundation Inc has a Mission Score of 88/100. Revenue: $475K. Assets: $7.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Magellan Education Foundation Inc?
The Employer Identification Number (EIN) for Magellan Education Foundation Inc is 203971056. 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 Magellan Education Foundation Inc spend its money?
Magellan Education Foundation Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Magellan Education Foundation Inc's tax-exempt status?
You can verify Magellan Education Foundation Inc's tax-exempt status using EIN 203971056 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
Magellan Education Foundation Inc. demonstrates consistent financial health with a strong asset base relative to its annual revenue. Over the past decade, the organization has maintained assets well over $5 million, reaching $7,470,061 in the latest period, significantly exceeding its latest revenue of $474,892. This indicates a robust endowment or investment strategy, providing long-term stability. The foundation consistently spends less than its revenue, as seen in 202306 where expenses were $331,248 against $365,340 in revenue, allowing for asset growth or reinvestment.
The organization's spending efficiency appears strong, particularly given the consistent reporting of 0% officer compensation across all available filings. This suggests that administrative costs related to executive salaries are minimal or non-existent, which is a positive indicator for donor confidence. While a detailed breakdown of program, administrative, and fundraising expenses isn't provided in the summary data, the overall expense levels relative to revenue suggest a lean operational structure. The consistent filing of IRS Form 990s over 13 periods also points to a commitment to transparency.
However, without a detailed functional expense breakdown, it's challenging to precisely assess the proportion of spending directly on programs versus overhead. The significant asset base and relatively modest annual expenses suggest that the foundation may primarily operate as a grant-making entity or manage an endowment, rather than directly running large-scale programs. The consistent financial reporting and lack of officer compensation are strong indicators of responsible financial management and transparency.