Quick charity verification for Medical Letter Inc (EIN: 131881832)
Verdict: Medical Letter Inc appears trustworthy
85/100Mission Score
$5.6MRevenue
$4.4MAssets
1Red Flags
4Strengths
Red Flags
Significant decline in assets from 2014 to 2018 without clear explanation in provided data.
Strengths
Consistent reporting of 0% officer compensation, indicating high efficiency in leadership costs.
Stable revenue generation over the past several years, typically between $4M and $5M.
Positive trend in asset recovery since 2018, increasing from $3.4M to $4.4M.
Consistent filing of IRS Form 990s, demonstrating transparency and compliance.
Spending Breakdown
How Medical Letter Inc 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 Medical Letter Inc
Is Medical Letter Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Medical Letter Inc (EIN: 131881832) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Medical Letter Inc a good charity to donate to?
Medical Letter Inc has a Mission Score of 85/100. Revenue: $5.6M. Assets: $4.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Medical Letter Inc?
The Employer Identification Number (EIN) for Medical Letter Inc is 131881832. 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 Medical Letter Inc spend its money?
Medical Letter Inc allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Medical Letter Inc's tax-exempt status?
You can verify Medical Letter Inc's tax-exempt status using EIN 131881832 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
Medical Letter Inc demonstrates consistent financial operations with revenues generally exceeding or closely matching expenses over the past five years, indicating a stable financial position. For instance, in 202206, revenue was $4,609,890 against expenses of $4,287,671. The organization's assets have shown a slight upward trend in recent years, reaching $4,462,819 in 202306, after a period of decline from a high of $8,751,635 in 201406. This suggests a recovery or stabilization in its financial reserves.
Spending efficiency appears to be a strong point, as the organization consistently reports 0% officer compensation, indicating that leadership is not drawing a salary from the nonprofit. This practice significantly reduces administrative overhead and allows a greater proportion of funds to be directed towards its mission. While specific program spending ratios are not provided in the raw data, the absence of executive compensation is a positive indicator of efficiency.
Transparency is high regarding executive compensation, as the 0% reported for officer compensation is a clear and positive disclosure. The consistent filing of IRS Form 990s over 13 periods also demonstrates a commitment to regulatory compliance and public accountability. However, without a detailed breakdown of program, administrative, and fundraising expenses, a complete assessment of spending efficiency and transparency regarding fund allocation is limited.