Quick charity verification for Music That Matters Inc (EIN: 208883546)
Verdict: Music That Matters Inc appears trustworthy
85/100Mission Score
$790KRevenue
$1.4MAssets
2Red Flags
4Strengths
Red Flags
Unexplained significant revenue spike in 2019 ($8.7M vs. typical ~$700K-$900K)
Historically high liabilities between 2014-2018 (e.g., $8.09M in 2018) without clear explanation of their nature or resolution.
Strengths
Consistent reporting of 0% officer compensation, indicating efficient use of funds for mission-related activities.
Positive net income in recent years (e.g., $74,566 in 2023), demonstrating financial sustainability.
Assets consistently exceed liabilities in recent periods, indicating a healthy balance sheet.
Long history of IRS 990 filings (13 filings), suggesting a commitment to transparency.
Spending Breakdown
How Music That Matters Inc allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
10%
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 Music That Matters Inc
Is Music That Matters Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Music That Matters Inc (EIN: 208883546) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is Music That Matters Inc a good charity to donate to?
Music That Matters Inc has a Mission Score of 85/100. Revenue: $790K. Assets: $1.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Music That Matters Inc?
The Employer Identification Number (EIN) for Music That Matters Inc is 208883546. 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 Music That Matters Inc spend its money?
Music That Matters Inc allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Music That Matters Inc's tax-exempt status?
You can verify Music That Matters Inc's tax-exempt status using EIN 208883546 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
Music That Matters Inc. demonstrates a generally stable financial position, with assets consistently exceeding liabilities in recent years, reaching $1,616,387 in assets against $568,451 in liabilities in 2023. The organization has shown a positive trend in revenue and managed expenses effectively, as evidenced by the 2023 period where revenue of $924,184 surpassed expenses of $849,618. However, there was a significant anomaly in 2019 with reported revenue of $8,755,629, which sharply contrasts with typical annual revenues around $700,000-$900,000, warranting further investigation into its source and impact. The organization consistently reports 0% officer compensation, indicating strong financial stewardship regarding executive pay.
Spending efficiency appears to be reasonable, with expenses generally aligned with revenue, preventing significant deficits in most recent periods. The absence of officer compensation is a positive indicator of resource allocation towards the mission. While specific program, administrative, and fundraising expense breakdowns are not provided in the raw data, the overall financial health suggests a capacity to deliver on its mission. The organization's consistent filing history over 13 periods also points to a commitment to transparency through regular reporting.
One area for closer examination is the fluctuating liability figures in earlier years, particularly the high liabilities between 2014 and 2018, which reached over $8 million in 2018, before significantly decreasing to more manageable levels in subsequent years. Understanding the nature of these past liabilities and their resolution would provide a more complete picture of long-term financial stability. The recent trend, however, shows a healthy balance sheet.