Is Magic House Inc Legit?

Quick charity verification for Magic House Inc (EIN: 10758063)

Verdict: Magic House Inc shows mixed signals

65/100Mission Score
$0Revenue
$0Assets
2Red Flags
3Strengths

Red Flags

Strengths

Spending Breakdown

How Magic House Inc allocates its funds across programs, administration, and fundraising.

80%
Program Spending
Healthy — majority goes to mission
15%
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 Magic House Inc

Is Magic House Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Magic House Inc (EIN: 10758063) shows mixed signals. Mission Score: 65/100. 2 red flags identified, 3 strengths noted.

Is Magic House Inc a good charity to donate to?

Magic House Inc has a Mission Score of 65/100. Revenue: $0. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Magic House Inc?

The Employer Identification Number (EIN) for Magic House Inc is 10758063. 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 Magic House Inc spend its money?

Magic House Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Magic House Inc's tax-exempt status?

You can verify Magic House Inc's tax-exempt status using EIN 10758063 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

Magic House Inc. appears to be a small, community-focused organization, as indicated by its relatively modest revenues and assets over the past decade. The organization has consistently operated with revenues ranging from approximately $69,000 to $228,000, and expenses generally tracking closely with revenue, often resulting in small deficits or surpluses. For instance, in 2020, expenses of $78,490 exceeded revenues of $69,094, while in 2016, revenues of $204,069 exceeded expenses of $195,559. The organization's assets have remained low, peaking at $46,215 in 2016 and dropping to $414 in 2020, suggesting limited financial reserves. The consistent reporting of 0% officer compensation across all filings indicates a volunteer-led or very lean operational structure, which can be a positive sign for donor confidence regarding administrative overhead. However, the latest filing period (2021-present) shows $0 in both revenue and assets, which is a significant concern and suggests the organization may no longer be actively operating or has undergone a substantial change in its financial activities. This abrupt cessation of financial activity, following a decade of consistent, albeit small, operations, warrants further investigation. Without more detailed expense breakdowns (program, administrative, fundraising) from the 990s, a precise assessment of spending efficiency is challenging, but the lack of officer compensation points to a potentially efficient use of funds for its size. In terms of transparency, the consistent filing of IRS Form 990s over a decade demonstrates a commitment to public disclosure. However, the current 'zero' financial status is a major transparency issue, as it leaves a significant gap in understanding the organization's current operational status and financial health. Donors and stakeholders would need clarification on why the organization's latest reported financials are zero after years of activity.

View Full Transparency Report →

Disclaimer

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

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