Quick charity verification for Mcfadden Foundation Inc (EIN: 20558816)
Verdict: Mcfadden Foundation Inc has notable concerns
20/100Mission Score
$71Revenue
$2KAssets
4Red Flags
2Strengths
Red Flags
Consistent negative net income (e.g., $71 revenue vs. $500 expenses in 2022)
Increasing liabilities relative to assets (Liabilities $3,350 vs. Assets $1,756 in 2022)
Extremely low and declining revenue in recent years (e.g., $71 in 2022 compared to $4,948 in 2015)
Significant decline in assets over time (from $8,570 in 2011 to $1,756 in 2022)
Strengths
Consistent IRS 990 filing history, indicating compliance with reporting requirements.
Zero officer compensation reported, suggesting volunteer leadership and minimal overhead in this area.
Spending Breakdown
How Mcfadden Foundation Inc allocates its funds across programs, administration, and fundraising.
0%
Program Spending
Concerning — less than half to programs
100%
Admin Costs
High — over 25% on administration
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 Mcfadden Foundation Inc
Is Mcfadden Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Mcfadden Foundation Inc (EIN: 20558816) has notable concerns. Mission Score: 20/100. 4 red flags identified, 2 strengths noted.
Is Mcfadden Foundation Inc a good charity to donate to?
Mcfadden Foundation Inc has a Mission Score of 20/100. Revenue: $71. Assets: $2K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Mcfadden Foundation Inc?
The Employer Identification Number (EIN) for Mcfadden Foundation Inc is 20558816. 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 Mcfadden Foundation Inc spend its money?
Mcfadden Foundation Inc allocates 0% to programs, 100% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Mcfadden Foundation Inc's tax-exempt status?
You can verify Mcfadden Foundation Inc's tax-exempt status using EIN 20558816 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 McFadden Foundation Inc. appears to be a very small organization with extremely limited financial activity in recent years. Its latest reported revenue for 2022 was only $71, with expenses of $500, indicating it spent more than it brought in. This trend of expenses significantly exceeding revenue has been consistent in recent filings, with liabilities also steadily increasing from $379 in 2015 to $3,350 in 2022, while assets have remained very low, at $1,756 in 2022. The foundation's financial health is concerning given its minimal revenue and growing liabilities relative to its assets.
Spending efficiency is difficult to assess without a detailed breakdown of expenses, which are not provided in the summary data. However, given the very low revenue and high expenses relative to that revenue, it suggests that the organization is not self-sustaining through its current activities. The consistent reporting of zero officer compensation indicates a volunteer-driven or minimally compensated leadership structure, which is a positive for efficiency if the organization were more active.
Transparency is generally good as the organization has a consistent filing history with the IRS, submitting 9 filings. However, the lack of detailed financial information beyond top-line figures makes a deeper analysis challenging. The extremely small scale of operations and negative net income trend raise questions about its ongoing viability and impact.