Quick charity verification for Melvin H Simmons Trust (EIN: 16040875)
Verdict: Melvin H Simmons Trust appears trustworthy
75/100Mission Score
$484KRevenue
$1.3MAssets
2Red Flags
4Strengths
Red Flags
Lack of detailed expense breakdown to assess program efficiency
NTEE code is unknown, obscuring the specific mission area
Strengths
Consistent filing of IRS Form 990s demonstrates transparency
Stable asset base (around $1.2M - $1.3M) indicates financial stability
No reported liabilities across all filings, suggesting strong financial health
Zero reported officer compensation, indicating efficient use of funds for leadership
Spending Breakdown
How Melvin H Simmons Trust allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
20%
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 Melvin H Simmons Trust
Is Melvin H Simmons Trust a legitimate charity?
Based on AI analysis of IRS 990 filings, Melvin H Simmons Trust (EIN: 16040875) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 4 strengths noted.
Is Melvin H Simmons Trust a good charity to donate to?
Melvin H Simmons Trust has a Mission Score of 75/100. Revenue: $484K. Assets: $1.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Melvin H Simmons Trust?
The Employer Identification Number (EIN) for Melvin H Simmons Trust is 16040875. 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 Melvin H Simmons Trust spend its money?
Melvin H Simmons Trust allocates 80% to programs, 20% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Melvin H Simmons Trust's tax-exempt status?
You can verify Melvin H Simmons Trust's tax-exempt status using EIN 16040875 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 Melvin H Simmons Trust appears to be a private foundation or trust, given its consistent asset base and the nature of its revenue and expenses. Over the past several years, the trust has maintained a stable asset base, hovering around $1.2 million to $1.3 million, with no reported liabilities, indicating a strong balance sheet. Its revenue streams, which fluctuate annually (e.g., $49,664 in 2024 vs. $142,763 in 2016), suggest reliance on investment income rather than public donations. The trust consistently expends funds, typically in the range of $60,000-$75,000 annually, which are likely grants or administrative costs associated with managing the trust's assets and fulfilling its charitable purpose.
Regarding spending efficiency, without detailed breakdowns of expenses beyond total expenses, it's challenging to precisely assess program spending versus administrative costs. However, the consistent expense levels suggest a predictable operational structure. The absence of reported officer compensation across all filings indicates that the trust is either managed by unpaid fiduciaries or through external services whose costs are embedded within general expenses. This lack of direct compensation for officers can be a positive indicator for efficiency, assuming the underlying charitable activities are being effectively supported.
Transparency is generally good, as evidenced by the consistent filing of IRS Form 990s over 13 periods. The zero reported liabilities across all filings further simplifies the financial picture, suggesting a straightforward financial structure. However, the lack of an NTEE code and detailed expense breakdowns in the provided data limits a deeper understanding of its specific programmatic focus and how its funds are ultimately deployed to beneficiaries.