Is Mclain Family Foundation Inc Legit? —…

Quick charity verification for Mclain Family Foundation Inc (EIN: 201865497)

Spending Breakdown

How Mclain Family Foundation 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

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 Mclain Family Foundation Inc

Is Mclain Family Foundation Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Mclain Family Foundation Inc (EIN: 201865497) shows mixed signals. Mission Score: 55/100. 3 red flags identified, 2 strengths noted.

Is Mclain Family Foundation Inc a good charity to donate to?

Mclain Family Foundation Inc has a Mission Score of 55/100. Revenue: $71K. Assets: $443K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Mclain Family Foundation Inc?

The Employer Identification Number (EIN) for Mclain Family Foundation Inc is 201865497. 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 Mclain Family Foundation Inc spend its money?

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

How can I verify Mclain Family Foundation Inc's tax-exempt status?

You can verify Mclain Family Foundation Inc's tax-exempt status using EIN 201865497 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 Mclain Family Foundation Inc. exhibits a concerning trend of declining assets and consistent operating deficits over the past several years. While the organization reports 0% officer compensation, which is a positive for transparency and efficiency, its expenses have frequently outstripped its revenue. For instance, in 202306, revenue was $18,617 against expenses of $61,752, leading to a significant draw on assets. This pattern is not isolated, as seen in 202206 (revenue $23,241, expenses $108,874) and 202106 (revenue $59,193, expenses $131,397). The foundation's assets have decreased from a high of $1,300,081 in 201506 to $442,536 in 202306, indicating a substantial depletion of its financial reserves. This consistent deficit spending raises questions about the long-term sustainability of its operations and its ability to maintain its mission without a significant increase in revenue or reduction in expenses.

The organization's NTEE code T20 suggests it is a grantmaking foundation, which typically means its 'program spending' is primarily grants to other organizations. Without detailed expense breakdowns beyond total expenses, it's challenging to assess the efficiency of its grantmaking versus administrative overhead. However, the consistent decline in assets suggests that the foundation is spending down its endowment rather than operating on investment income or new contributions. The lack of officer compensation is a strong point for efficiency, but the overall financial trajectory indicates a need for strategic review regarding revenue generation or expense management to ensure future viability. The transparency of reporting 0% officer compensation is commendable, but the financial health trends warrant closer scrutiny.

Is Mclain Family Foundation Inc Legit?

Verdict: Mclain Family Foundation Inc shows mixed signals

Red Flags

Strengths