Quick charity verification for Maxwell K Murphy Scholarship Fund (EIN: 16029987)
Verdict: Maxwell K Murphy Scholarship Fund appears trustworthy
85/100Mission Score
$7KRevenue
$25KAssets
2Red Flags
3Strengths
Red Flags
Consistent negative net income (expenses exceeding revenue) in multiple periods, leading to asset depletion (e.g., 2020: $1,259 revenue vs. $2,121 expenses; 2019: $1,045 revenue vs. $1,750 expenses).
Declining asset base over time, from $35,411 in 2011 to $24,942 currently, indicating a potential long-term sustainability challenge without increased fundraising or endowment growth.
Strengths
Strong program focus, as implied by its mission as a scholarship fund and minimal overhead (0% officer compensation).
High transparency with consistent IRS 990 filings over seven periods.
Efficient operations due to volunteer leadership, with 0% officer compensation reported across all available filings.
Spending Breakdown
How Maxwell K Murphy Scholarship Fund allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
0%
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 Maxwell K Murphy Scholarship Fund
Is Maxwell K Murphy Scholarship Fund a legitimate charity?
Based on AI analysis of IRS 990 filings, Maxwell K Murphy Scholarship Fund (EIN: 16029987) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 3 strengths noted.
Is Maxwell K Murphy Scholarship Fund a good charity to donate to?
Maxwell K Murphy Scholarship Fund has a Mission Score of 85/100. Revenue: $7K. Assets: $25K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Maxwell K Murphy Scholarship Fund?
The Employer Identification Number (EIN) for Maxwell K Murphy Scholarship Fund is 16029987. 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 Maxwell K Murphy Scholarship Fund spend its money?
Maxwell K Murphy Scholarship Fund allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Maxwell K Murphy Scholarship Fund's tax-exempt status?
You can verify Maxwell K Murphy Scholarship Fund's tax-exempt status using EIN 16029987 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 Maxwell K Murphy Scholarship Fund appears to be a small, community-focused organization with a consistent history of operations, as evidenced by its seven IRS 990 filings. Its financial health shows a pattern of modest revenue, often less than expenses, leading to a gradual decline in assets over the years, from $35,411 in 2011 to $24,942 currently. For example, in 2020, revenue was $1,259 against expenses of $2,121, and in 2019, revenue was $1,045 against expenses of $1,750. This suggests the fund is slowly drawing down its principal to support its scholarship activities, which is common for endowed funds. The organization consistently reports 0% officer compensation, indicating a volunteer-driven model, which is a positive sign for efficiency and donor trust.
Given its small scale and the nature of a scholarship fund, its spending efficiency is likely tied directly to the number and size of scholarships awarded. Without detailed expense breakdowns beyond total expenses, it's challenging to precisely assess the ratio of program spending to administrative or fundraising costs. However, the absence of officer compensation suggests minimal overhead in that area. The organization's consistent filing of 990s demonstrates a commitment to transparency, providing public access to its financial activities, even if the detailed breakdown of expenses isn't fully available in the provided summary data.
Overall, while the fund's assets are slowly decreasing, its consistent operation and volunteer leadership indicate a dedicated effort to fulfill its mission. Donors should be aware that contributions are likely supporting current scholarship disbursements and helping to maintain the fund's principal against ongoing expenses.