Is Open Books Ltd Legit?

Quick charity verification for Open Books Ltd (EIN: 204830666)

Verdict: Open Books Ltd appears trustworthy

90/100Mission Score

$5.4MRevenue

$4.3MAssets

2Red Flags

4Strengths

Red Flags

Significant and unexplained increase in liabilities from $151,626 in 2022 to $2,072,532 in 2023.
Consistent 0% officer compensation reported despite substantial organizational growth and revenue, which is atypical for an organization of this scale and warrants further inquiry.

Strengths

Consistent revenue growth, increasing from $1,733,966 in 2014 to $3,624,935 in 2023.
Strong asset accumulation, with assets growing from $424,969 in 2014 to $4,049,088 in 2023.
Expenses consistently below revenue, indicating sound financial management and the ability to generate surpluses.
Long history of IRS 990 filings (13 filings), demonstrating commitment to transparency.

Spending Breakdown

How Open Books Ltd 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 Open Books Ltd

Is Open Books Ltd a legitimate charity?

Based on AI analysis of IRS 990 filings, Open Books Ltd (EIN: 204830666) appears trustworthy. Mission Score: 90/100. 2 red flags identified, 4 strengths noted.

Is Open Books Ltd a good charity to donate to?

Open Books Ltd has a Mission Score of 90/100. Revenue: $5.4M. Assets: $4.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Open Books Ltd?

The Employer Identification Number (EIN) for Open Books Ltd is 204830666. 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 Open Books Ltd spend its money?

Open Books Ltd allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Open Books Ltd's tax-exempt status?

You can verify Open Books Ltd's tax-exempt status using EIN 204830666 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

Open Books Ltd demonstrates a strong and consistent financial growth trajectory, with revenue increasing from $1,733,966 in 2014 to $3,624,935 in 2023, and total assets growing significantly from $424,969 to $4,049,088 over the same period. The organization consistently manages its expenses below revenue, indicating sound financial management and the ability to build reserves. For instance, in 2023, revenue was $3,624,935 against expenses of $3,128,887, resulting in a surplus.

The organization's spending efficiency appears robust, particularly given the reported 0% officer compensation across all available filings, suggesting that executive leadership is either volunteer-based or compensated through other means not categorized as 'officer compensation' on the 990, which is a positive indicator for program-focused spending. The substantial growth in assets, especially the jump from $1,632,134 in 2022 to $4,049,088 in 2023, indicates effective asset accumulation and financial stability. However, the corresponding increase in liabilities from $151,626 to $2,072,532 in the same period warrants closer examination to understand the nature of these liabilities.

Transparency is generally good, with consistent filing of IRS Form 990s over 13 periods. The absence of reported officer compensation is a notable point for transparency, as it implies a very lean administrative cost structure at the top. To further enhance transparency, a detailed breakdown of program, administrative, and fundraising expenses would be beneficial, as the current data only provides total expenses. The significant increase in liabilities in the latest period, while not necessarily a red flag, does highlight an area where more detailed information would improve understanding of the organization's financial strategy.

View Full Transparency Report →

Disclaimer

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