Quick charity verification for Memphis Beauty Supply Association (EIN: 205674192)
Verdict: Memphis Beauty Supply Association shows mixed signals
65/100Mission Score
$102KRevenue
$5KAssets
3Red Flags
2Strengths
Red Flags
Significant decline in assets from $91,622 in 2022 to $5,215 currently.
Expenses exceeded revenue in 2023 ($192,618 vs. $149,427), indicating a deficit.
Highly inconsistent annual revenue and expense figures over the past decade, suggesting financial instability.
Strengths
Consistent reporting of 0% officer compensation, indicating efficient use of funds for executive pay.
Maintains very low liabilities, often $0 or $1, demonstrating responsible debt management.
Spending Breakdown
How Memphis Beauty Supply Association allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
5%
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 Memphis Beauty Supply Association
Is Memphis Beauty Supply Association a legitimate charity?
Based on AI analysis of IRS 990 filings, Memphis Beauty Supply Association (EIN: 205674192) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 2 strengths noted.
Is Memphis Beauty Supply Association a good charity to donate to?
Memphis Beauty Supply Association has a Mission Score of 65/100. Revenue: $102K. Assets: $5K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Memphis Beauty Supply Association?
The Employer Identification Number (EIN) for Memphis Beauty Supply Association is 205674192. 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 Memphis Beauty Supply Association spend its money?
Memphis Beauty Supply Association allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Memphis Beauty Supply Association's tax-exempt status?
You can verify Memphis Beauty Supply Association's tax-exempt status using EIN 205674192 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 Memphis Beauty Supply Association exhibits inconsistent financial performance over the past decade. While the organization generally maintains low liabilities, its revenue and expense figures fluctuate significantly. For instance, in 2023, expenses ($192,618) exceeded revenue ($149,427), leading to a deficit, a reversal from 2022 where revenue ($198,701) significantly outpaced expenses ($149,607). The organization's assets have also seen considerable variation, from a high of $112,868 in 2015 to a low of $5,215 currently, and $19,833 in 2011. This volatility suggests potential challenges in consistent financial planning or revenue generation. The consistent reporting of 0% officer compensation across all filings indicates a commitment to minimizing administrative overhead related to executive pay, which is a positive sign for donor confidence regarding how funds are allocated.
Given the NTEE code B90, which typically relates to business and professional associations, the organization's financial health should ideally reflect stable membership or program income. The current low asset base of $5,215, especially compared to its peak, raises questions about its long-term financial resilience and ability to fund future initiatives. The lack of detailed expense breakdowns in the provided data makes it difficult to fully assess spending efficiency beyond the executive compensation aspect. However, the consistent reporting of liabilities near zero is a strong indicator of responsible debt management.
Overall, the organization demonstrates transparency in its executive compensation, consistently reporting no officer pay. However, the significant swings in revenue, expenses, and assets suggest a need for greater financial stability and potentially more robust fundraising or program income strategies to ensure sustained operations and impact. The current asset level is a concern for an organization with historical revenues often exceeding $100,000.