Quick charity verification for Mercy House Chdo Inc (EIN: 204122028)
Verdict: Mercy House Chdo Inc appears trustworthy
85/100Mission Score
$27.1MRevenue
$35.1MAssets
2Red Flags
3Strengths
Red Flags
Highly volatile revenue streams without clear explanations in public filings.
Significant liabilities reported in recent years (e.g., $12,379,841 in 2023) relative to assets, warranting further investigation into their nature and repayment terms.
Strengths
Consistent reporting of 0% officer compensation, indicating high efficiency in executive overhead.
Substantial asset growth, from $10,750 in 2014 to $35,054,760 currently, suggesting successful capital accumulation.
Strong financial position with current assets significantly exceeding liabilities ($35,054,760 assets vs. $12,379,841 liabilities in 2023).
Spending Breakdown
How Mercy House Chdo Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
5%
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 Mercy House Chdo Inc
Is Mercy House Chdo Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Mercy House Chdo Inc (EIN: 204122028) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 3 strengths noted.
Is Mercy House Chdo Inc a good charity to donate to?
Mercy House Chdo Inc has a Mission Score of 85/100. Revenue: $27.1M. Assets: $35.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Mercy House Chdo Inc?
The Employer Identification Number (EIN) for Mercy House Chdo Inc is 204122028. 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 Mercy House Chdo Inc spend its money?
Mercy House Chdo Inc allocates 90% to programs, 5% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Mercy House Chdo Inc's tax-exempt status?
You can verify Mercy House Chdo Inc's tax-exempt status using EIN 204122028 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
Mercy House Chdo Inc demonstrates a highly variable financial history, with significant fluctuations in revenue and assets over the past decade. The organization experienced a substantial increase in revenue from $649,547 in 2022 to $2,565,486 in 2023, and a remarkable jump to $14,778,489 in 2021. This volatility, while not inherently negative, warrants closer examination to understand the underlying drivers, such as large grants or specific projects. The organization consistently reports 0% officer compensation across all available filings, which is a strong indicator of financial efficiency and a commitment to directing funds towards its mission rather than executive salaries. However, without detailed expense breakdowns for program, administrative, and fundraising costs, a complete assessment of spending efficiency is challenging. The rapid growth in assets, from $10,750 in 2014 to $35,054,760 currently, suggests successful asset accumulation, potentially through property or investment, which aligns with its NTEE code (L20 - Housing, Shelter). The lack of reported officer compensation also contributes positively to its transparency profile.