Quick charity verification for Malcolm E Smith Jr Foundation Inc (EIN: 113344933)
Verdict: Malcolm E Smith Jr Foundation Inc shows mixed signals
40/100Mission Score
$371KRevenue
$2.0MAssets
4Red Flags
2Strengths
Red Flags
Consistent operational deficits (e.g., 2020: Revenue $67,772 vs. Expenses $141,050)
Significant and continuous decline in assets (from $4,361,086 in 2011 to $1,972,035 in 2020)
Negative revenue reported in 2019 ($-1,010,777), indicating major financial setbacks.
Expenses consistently outweighing revenue across multiple years.
Strengths
No reported officer compensation, indicating potential volunteer leadership or efficient use of funds for executive roles.
Relatively low liabilities across most periods (e.g., $1 in 2020).
Spending Breakdown
How Malcolm E Smith Jr Foundation Inc allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
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 Malcolm E Smith Jr Foundation Inc
Is Malcolm E Smith Jr Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Malcolm E Smith Jr Foundation Inc (EIN: 113344933) shows mixed signals. Mission Score: 40/100. 4 red flags identified, 2 strengths noted.
Is Malcolm E Smith Jr Foundation Inc a good charity to donate to?
Malcolm E Smith Jr Foundation Inc has a Mission Score of 40/100. Revenue: $371K. Assets: $2.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Malcolm E Smith Jr Foundation Inc?
The Employer Identification Number (EIN) for Malcolm E Smith Jr Foundation Inc is 113344933. 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 Malcolm E Smith Jr Foundation Inc spend its money?
Malcolm E Smith Jr Foundation Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Malcolm E Smith Jr Foundation Inc's tax-exempt status?
You can verify Malcolm E Smith Jr Foundation Inc's tax-exempt status using EIN 113344933 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 Malcolm E Smith Jr Foundation Inc exhibits a concerning financial trend, consistently reporting expenses significantly exceeding revenue over the past decade. For instance, in 2020, the organization reported $67,772 in revenue against $141,050 in expenses, indicating a deficit. This pattern is not isolated, with a particularly stark example in 2019 where revenue was negative $-1,010,777 while expenses were $80,480. This suggests a reliance on drawing down assets rather than sustainable fundraising or program income. The foundation's assets have steadily declined from $4,361,086 in 2011 to $1,972,035 in 2020, a reduction of over 50%, which is a significant red flag regarding its long-term viability and financial health.
The organization's spending efficiency is difficult to fully assess without a detailed functional expense breakdown, which is not provided in the summary data. However, the consistent operational deficits raise questions about the effectiveness of its financial management. The absence of reported officer compensation across all available filings suggests either a volunteer-led structure or that compensation is reported under other expense categories, which could impact transparency. Given the substantial asset depletion and consistent revenue shortfalls, the foundation's financial sustainability appears to be at risk, impacting its ability to fulfill its mission effectively in the long term.