Is Next Step Legit?

Quick charity verification for Next Step (EIN: 201750945)

Verdict: Next Step appears trustworthy

88/100Mission Score

$1.0MRevenue

$921KAssets

2Red Flags

5Strengths

Red Flags

Lack of detailed expense breakdown (program, admin, fundraising) in provided data prevents full efficiency analysis
Increasing liabilities in recent years (e.g., $642 in 2024) warrant monitoring, though still low relative to assets

Strengths

Consistent revenue growth over multiple years (e.g., $109,611 in 2015 to $442,698 in 2024)
Healthy asset accumulation, indicating financial stability (e.g., $125,345 in 2015 to $506,924 in 2024)
No reported officer compensation across all filings, suggesting high dedication to mission
Expenses consistently lower than revenue in most recent periods, allowing for asset growth
Regular and consistent IRS 990 filing history (14 filings)

Spending Breakdown

How Next Step 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 Next Step

Is Next Step a legitimate charity?

Based on AI analysis of IRS 990 filings, Next Step (EIN: 201750945) appears trustworthy. Mission Score: 88/100. 2 red flags identified, 5 strengths noted.

Is Next Step a good charity to donate to?

Next Step has a Mission Score of 88/100. Revenue: $1.0M. Assets: $921K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Next Step?

The Employer Identification Number (EIN) for Next Step is 201750945. 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 Next Step spend its money?

Next Step allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Next Step's tax-exempt status?

You can verify Next Step's tax-exempt status using EIN 201750945 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

Next Step demonstrates a consistent pattern of growth in revenue and assets over the past several years, indicating increasing financial capacity. For instance, revenue grew from $109,611 in 2015 to $442,698 in 2024, with assets similarly increasing from $125,345 to $506,924 in the same period. The organization has maintained a healthy financial position, with assets generally exceeding liabilities, though liabilities have seen an increase in recent years, reaching $642 in 2024. This growth suggests a stable operational environment and increasing donor confidence.

The organization's spending efficiency appears strong, as expenses have consistently been lower than revenue in most recent periods, allowing for asset accumulation. For example, in 2024, expenses were $355,043 against revenues of $442,698. A notable strength is the reported 0% officer compensation across all filings, which suggests that executive leadership is either volunteer-based or compensated through other means not categorized as officer compensation, potentially indicating a high dedication to program spending. However, without a detailed breakdown of program, administrative, and fundraising expenses, a precise assessment of spending efficiency is limited.

Regarding transparency, the consistent filing of IRS Form 990s over 14 periods is a positive indicator. The absence of reported officer compensation is a significant point for transparency, as it suggests resources are not being diverted to high executive salaries. However, the lack of detailed expense breakdowns in the provided data prevents a deeper analysis of how funds are allocated across programs, administration, and fundraising, which would enhance overall transparency.

View Full Transparency Report →

Disclaimer

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