Is Naacp Foundation Legit?

Quick charity verification for Naacp Foundation (EIN: 131998814)

Verdict: Naacp Foundation appears trustworthy

90/100Mission Score

$5.7MRevenue

$14.9MAssets

1Red Flags

4Strengths

Red Flags

Consistent 0% officer compensation may obscure true leadership costs if paid by an affiliate.

Strengths

Exceptional financial efficiency with very low expenses relative to revenue (e.g., 2023 expenses were only 15% of revenue).
Strong asset growth, increasing from $612,772 in 2018 to $13,390,268 in 2023, indicating robust financial health.
Consistent revenue generation, demonstrating strong fundraising capabilities.
Low liabilities relative to assets in recent years, improving financial leverage (e.g., 2023 assets $13.39M vs. liabilities $55K).

Spending Breakdown

How Naacp Foundation allocates its funds across programs, administration, and fundraising.

90%

Program Spending

Healthy — majority goes to mission

Admin Costs

Reasonable — admin costs in check

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 Naacp Foundation

Is Naacp Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Naacp Foundation (EIN: 131998814) appears trustworthy. Mission Score: 90/100. 1 red flag identified, 4 strengths noted.

Is Naacp Foundation a good charity to donate to?

Naacp Foundation has a Mission Score of 90/100. Revenue: $5.7M. Assets: $14.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Naacp Foundation?

The Employer Identification Number (EIN) for Naacp Foundation is 131998814. 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 Naacp Foundation spend its money?

Naacp Foundation allocates 90% to programs, 5% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Naacp Foundation's tax-exempt status?

You can verify Naacp Foundation's tax-exempt status using EIN 131998814 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 NAACP Foundation demonstrates strong financial health and appears to be highly efficient in its spending, particularly in recent years. For example, in 2023, the organization reported revenues of $1,241,912 against expenses of only $188,938, indicating a significant surplus. This trend of expenses being a small fraction of revenue is consistent across multiple recent filings, such as 2022 (Revenue: $5,360,998, Expenses: $177,544) and 2021 (Revenue: $3,766,686, Expenses: $151,892). This suggests a strong capacity to build reserves and invest in future programs. The organization's assets have also shown consistent growth, increasing from $612,772 in 2018 to $13,390,268 in 2023, further solidifying its financial position.

However, a notable aspect is the consistent reporting of 0% officer compensation across all available filings. While this might indicate a volunteer-led executive structure or that compensation is handled by an affiliated entity, it warrants further investigation for complete transparency regarding leadership costs. The NTEE code R22I (Civil Rights) aligns well with the NAACP Foundation's mission, and the financial data suggests a strong focus on accumulating resources, likely for programmatic impact. The significant increase in assets over the past five years, from $1,076,204 in 2019 to $13,390,268 in 2023, is a positive indicator of financial stewardship and growth.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.