Quick charity verification for New Covenant Foundation Inc (EIN: 201986617)
Verdict: New Covenant Foundation Inc shows mixed signals
45/100Mission Score
$968KRevenue
$1.1MAssets
3Red Flags
3Strengths
Red Flags
Consistent deficit spending over a decade, leading to asset depletion.
Assets declined by over 50% from $2,889,972 in 2011 to $1,328,528 in 2023.
Negative revenue reported in 2020 (-$6,568).
Strengths
Zero reported officer compensation, indicating high transparency in this area.
Consistently low to zero liabilities, demonstrating good debt management.
The latest reported revenue of $968,234, if sustainable, could reverse negative financial trends.
Spending Breakdown
How New Covenant Foundation Inc allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
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 New Covenant Foundation Inc
Is New Covenant Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, New Covenant Foundation Inc (EIN: 201986617) shows mixed signals. Mission Score: 45/100. 3 red flags identified, 3 strengths noted.
Is New Covenant Foundation Inc a good charity to donate to?
New Covenant Foundation Inc has a Mission Score of 45/100. Revenue: $968K. Assets: $1.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for New Covenant Foundation Inc?
The Employer Identification Number (EIN) for New Covenant Foundation Inc is 201986617. 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 New Covenant Foundation Inc spend its money?
New Covenant Foundation Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify New Covenant Foundation Inc's tax-exempt status?
You can verify New Covenant Foundation Inc's tax-exempt status using EIN 201986617 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
New Covenant Foundation Inc. exhibits a concerning financial trend, with expenses consistently exceeding revenue over the past decade, leading to a significant decline in assets from $2,889,972 in 2011 to $1,328,528 in 2023. This indicates an unsustainable operational model where the organization is drawing down its reserves to cover costs. While the latest reported revenue is $968,234, this figure is an outlier compared to its historical annual revenues, which typically range from $98,557 to $221,877, suggesting a potential one-time event or a significant change in funding that is not reflected in the consistent expense patterns.
The organization's spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses. However, the consistent net losses raise questions about the effectiveness of its spending in relation to its mission. The absence of reported officer compensation across all filings suggests either a volunteer-led executive team or that compensation is reported under other expense categories, which could impact transparency. The organization consistently reports minimal to no liabilities, which is a positive indicator of financial solvency in terms of debt management, but this is overshadowed by the continuous asset depletion.
Transparency regarding executive compensation is high, with 0% reported officer compensation. However, the lack of detailed expense breakdowns in the provided data limits a comprehensive assessment of spending efficiency. The consistent decline in assets over a long period, despite varying revenue figures, points to a fundamental challenge in achieving financial sustainability and operational efficiency. The latest revenue figure of $968,234, if sustained, could reverse the trend, but historical data suggests a pattern of deficit spending.