Is Neal C Nichols Foundation Inc Legit?

Quick charity verification for Neal C Nichols Foundation Inc (EIN: 205813748)

Verdict: Neal C Nichols Foundation Inc appears trustworthy

75/100Mission Score

$10.8MRevenue

$12.8MAssets

2Red Flags

3Strengths

Red Flags

Consistent 0% officer compensation for an organization with substantial assets, which could indicate incomplete disclosure or an unusual operational model.
Significant year-over-year fluctuations in revenue and expenses without clear explanation in the provided summary, suggesting potential unpredictability in funding or grantmaking activities.

Strengths

Strong asset growth from $549,454 in 2011 to $9,855,353 in 2023, indicating robust financial management and investment.
Extremely low liabilities ($1 or $0 across all filings), demonstrating excellent financial solvency and minimal debt burden.
Consistent IRS 990 filing history, indicating adherence to regulatory transparency requirements.

Spending Breakdown

How Neal C Nichols Foundation Inc allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

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 Neal C Nichols Foundation Inc

Is Neal C Nichols Foundation Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Neal C Nichols Foundation Inc (EIN: 205813748) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.

Is Neal C Nichols Foundation Inc a good charity to donate to?

Neal C Nichols Foundation Inc has a Mission Score of 75/100. Revenue: $10.8M. Assets: $12.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Neal C Nichols Foundation Inc?

The Employer Identification Number (EIN) for Neal C Nichols Foundation Inc is 205813748. 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 Neal C Nichols Foundation Inc spend its money?

Neal C Nichols Foundation Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Neal C Nichols Foundation Inc's tax-exempt status?

You can verify Neal C Nichols Foundation Inc's tax-exempt status using EIN 205813748 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 Neal C Nichols Foundation Inc demonstrates a fluctuating financial performance over the past decade, with significant swings in revenue and expenses. For instance, in 2023, the organization reported revenue of $1,052,282 against expenses of $1,775,285, indicating a deficit for the year. This contrasts sharply with 2021, where revenue was $4,263,085 and expenses were $877,060, showing a substantial surplus. The foundation consistently reports minimal liabilities ($1 or $0 across all filings), suggesting a strong balance sheet in terms of debt. However, the lack of reported officer compensation across all filings, while potentially indicating a volunteer-led structure, could also raise questions about the full disclosure of operational costs if key personnel are compensated through other means or related entities. The NTEE code W12 (Private Grantmaking Foundations) suggests its primary activity is grantmaking, which typically involves lower administrative overhead compared to direct service charities.

Spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses within the provided data. However, the consistent reporting of zero officer compensation is a notable point regarding potential efficiency in leadership costs. The significant fluctuations in revenue and expenses year-over-year suggest an organization that may rely on large, infrequent contributions or has varying levels of grantmaking activity. The foundation's assets have grown substantially over the years, from $549,454 in 2011 to $9,855,353 in 2023, indicating successful asset accumulation despite annual operating deficits in some periods. This growth in assets, coupled with minimal liabilities, points to a financially stable organization from a balance sheet perspective.

Transparency is generally good with consistent IRS 990 filings. However, the absence of officer compensation details could be a point of inquiry for a deeper understanding of how leadership is structured and compensated. Given its nature as a private grantmaking foundation, its primary 'program' spending would be grants to other organizations, which is not detailed in this summary. A more granular look at the 990 forms would be needed to fully understand the allocation of expenses between grantmaking (programs) and administrative functions.

View Full Transparency Report →

Disclaimer

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