Quick charity verification for Newmarket Community Development Corp (EIN: 20370974)
Verdict: Newmarket Community Development Corp shows mixed signals
65/100Mission Score
$0Revenue
$0Assets
4Red Flags
3Strengths
Red Flags
Consistent pattern of expenses exceeding revenue in multiple years (e.g., 2017, 2016, 2015, 2012, 2011), indicating reliance on reserves.
Significant negative revenue of $-636,068 reported in 2010, which is highly unusual and unexplained by the provided data.
Latest filing shows $0 revenue and $0 assets, a drastic change from previous years with over $800,000 in assets, raising concerns about the organization's current status or reporting accuracy.
No officer compensation reported despite substantial assets, which could indicate a lack of professional management or a fully volunteer-run model that may not be sustainable for an organization of this asset size.
Strengths
Strong asset base, consistently over $800,000 for many years, providing financial stability.
Minimal to no liabilities reported in most years, indicating a healthy balance sheet.
No reported officer compensation, suggesting a highly efficient or volunteer-driven operational model.
Spending Breakdown
How Newmarket Community Development Corp allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
5%
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 Newmarket Community Development Corp
Is Newmarket Community Development Corp a legitimate charity?
Based on AI analysis of IRS 990 filings, Newmarket Community Development Corp (EIN: 20370974) shows mixed signals. Mission Score: 65/100. 4 red flags identified, 3 strengths noted.
Is Newmarket Community Development Corp a good charity to donate to?
Newmarket Community Development Corp has a Mission Score of 65/100. Revenue: $0. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Newmarket Community Development Corp?
The Employer Identification Number (EIN) for Newmarket Community Development Corp is 20370974. 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 Newmarket Community Development Corp spend its money?
Newmarket Community Development Corp allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Newmarket Community Development Corp's tax-exempt status?
You can verify Newmarket Community Development Corp's tax-exempt status using EIN 20370974 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 Newmarket Community Development Corp appears to be a very small organization, with recent annual revenues consistently below $50,000, and even reporting $0 in its latest filing. Despite low revenues, the organization has maintained substantial assets, typically over $800,000, with no reported liabilities in most recent years, suggesting a strong balance sheet. However, the consistent pattern of expenses often exceeding revenue, such as in 2017 ($34,270 expenses vs. $25,228 revenue) and 2016 ($30,123 expenses vs. $17,228 revenue), indicates a reliance on existing assets or prior period surpluses to cover operational costs. The significant negative revenue reported in 2010 ($-636,068) is a notable outlier that warrants further investigation, as it dramatically skews the long-term financial picture. The absence of officer compensation across all reported periods suggests a volunteer-led or very lean operational structure, which can be a positive for efficiency but also raises questions about the capacity for sustained program delivery given the minimal revenue.