Quick charity verification for Malone Family Foundation (EIN: 204596031)
Verdict: Malone Family Foundation shows mixed signals
45/100Mission Score
$860KRevenue
$4.8MAssets
4Red Flags
2Strengths
Red Flags
Consistent asset depletion over the past decade, from $6,265,293 in 201202 to $4,758,711 currently.
Expenses frequently exceed revenue, indicating an unsustainable financial model (e.g., 202002 expenses $249,840 vs. revenue $113,378).
Reported negative revenue of $-15,216 in period 202302, which is highly unusual and concerning.
Significant fluctuations in annual revenue, making financial planning and sustainability challenging.
Strengths
Consistently reports 0% officer compensation, indicating low administrative overhead related to executive salaries.
Maintains minimal liabilities ($1 in most periods), suggesting good debt management.
Spending Breakdown
How Malone Family 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
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 Malone Family Foundation
Is Malone Family Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Malone Family Foundation (EIN: 204596031) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
Is Malone Family Foundation a good charity to donate to?
Malone Family Foundation has a Mission Score of 45/100. Revenue: $860K. Assets: $4.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Malone Family Foundation?
The Employer Identification Number (EIN) for Malone Family Foundation is 204596031. 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 Malone Family Foundation spend its money?
Malone Family Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Malone Family Foundation's tax-exempt status?
You can verify Malone Family Foundation's tax-exempt status using EIN 204596031 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 Malone Family Foundation exhibits a concerning trend of declining assets and inconsistent revenue generation over the past decade. While the foundation reported $860,484 in the latest revenue, this figure is an outlier compared to previous years, which often saw significantly lower revenue and even a negative revenue of $-15,216 in 202302. Expenses have consistently outpaced revenue in most periods, leading to a substantial decrease in assets from $6,265,293 in 201202 to $4,758,711 currently. This pattern suggests that the foundation is spending down its principal rather than operating sustainably on investment returns or consistent fundraising.
The foundation's financial health appears to be deteriorating, with a consistent draw-down on its asset base. The lack of officer compensation reported across all filings indicates a volunteer-led or minimally staffed operation, which can be a positive for efficiency if program delivery is maintained. However, the overall financial trajectory raises questions about long-term viability and the effectiveness of its financial management strategies. The significant drop in assets over time, coupled with fluctuating and often insufficient revenue to cover expenses, points to a need for a re-evaluation of its financial model.
Transparency is generally good given the public availability of 990 filings. The consistent reporting of zero officer compensation is a clear indicator of this aspect. However, the financial performance itself, particularly the negative revenue in 202302 and the overall asset depletion, warrants closer scrutiny to understand the underlying causes and the foundation's plans to address these challenges.