Quick charity verification for Merry Go Round Playhouse Inc (EIN: 150625507)
Verdict: Merry Go Round Playhouse Inc shows mixed signals
65/100Mission Score
$4.7MRevenue
$4.1MAssets
2Red Flags
3Strengths
Red Flags
Frequent deficit spending, with expenses exceeding revenue in 6 out of the last 8 reported periods.
Significant decrease in assets from $5,806,561 in 2021 to $4,544,038 in 2023, while liabilities remain high.
Strengths
Long operating history with 13 IRS 990 filings, indicating established presence.
No reported officer compensation, suggesting efficient use of funds at the executive level (if accurate).
Significant revenue generation, consistently in the millions of dollars.
Spending Breakdown
How Merry Go Round Playhouse Inc allocates its funds across programs, administration, and fundraising.
75%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
10%
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 Merry Go Round Playhouse Inc
Is Merry Go Round Playhouse Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Merry Go Round Playhouse Inc (EIN: 150625507) shows mixed signals. Mission Score: 65/100. 2 red flags identified, 3 strengths noted.
Is Merry Go Round Playhouse Inc a good charity to donate to?
Merry Go Round Playhouse Inc has a Mission Score of 65/100. Revenue: $4.7M. Assets: $4.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Merry Go Round Playhouse Inc?
The Employer Identification Number (EIN) for Merry Go Round Playhouse Inc is 150625507. 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 Merry Go Round Playhouse Inc spend its money?
Merry Go Round Playhouse Inc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Merry Go Round Playhouse Inc's tax-exempt status?
You can verify Merry Go Round Playhouse Inc's tax-exempt status using EIN 150625507 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
Merry Go Round Playhouse Inc has demonstrated fluctuating financial health over the past several years. While revenue has generally been in the $3-6 million range, the organization has frequently operated with expenses exceeding revenue, as seen in 2023 ($5,044,428 expenses vs. $4,207,321 revenue) and 2022 ($4,532,329 expenses vs. $3,164,063 revenue). This trend of deficit spending could indicate a reliance on prior year surpluses or other funding sources not immediately apparent, or it could signal potential long-term sustainability challenges if not addressed. The organization's assets have also shown some volatility, decreasing from $5,806,561 in 2021 to $4,544,038 in 2023, while liabilities have remained substantial, around $2-3 million.
Spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which is not provided in the summary data. However, the consistent deficit spending in recent years suggests that the organization's operational costs frequently outpace its incoming revenue. The absence of reported officer compensation across all filings is a notable point regarding transparency, as it could mean that executive compensation is either very low, non-existent, or reported in a way not captured by the 'Officer Comp' field in this summary. Further investigation into the full 990 forms would be necessary to clarify this.
Overall, Merry Go Round Playhouse Inc appears to be a well-established organization given its 13 filings, but its recent financial performance indicates a need for closer examination of its revenue generation and expense management strategies to ensure long-term stability. The lack of reported officer compensation is a positive sign for transparency if it truly reflects no compensation, but warrants verification.