Quick charity verification for Pacific Rainbow Foundation (EIN: 201965878)
Verdict: Pacific Rainbow Foundation shows mixed signals
65/100Mission Score
$63KRevenue
$896KAssets
3Red Flags
3Strengths
Red Flags
Highly inconsistent revenue streams, with several years of negative or very low revenue (e.g., -$77,696 in 2019, $35,382 in 2022).
Frequent operating deficits, where expenses exceed revenue in multiple years (e.g., 2022, 2020, 2019, 2014, 2013).
Lack of detailed breakdown for program vs. administrative vs. fundraising expenses in the provided data, making precise spending efficiency difficult to ascertain beyond officer compensation.
Strengths
Consistently low liabilities ($0 or $1 across all filings), indicating strong financial solvency and minimal debt.
No reported officer compensation, suggesting a volunteer-driven model that minimizes administrative overhead.
Stable asset base (around $900,000) despite revenue fluctuations, providing a buffer for operations.
Spending Breakdown
How Pacific Rainbow Foundation allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
20%
Admin Costs
Reasonable — admin costs in check
0%
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 Pacific Rainbow Foundation
Is Pacific Rainbow Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Pacific Rainbow Foundation (EIN: 201965878) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
Is Pacific Rainbow Foundation a good charity to donate to?
Pacific Rainbow Foundation has a Mission Score of 65/100. Revenue: $63K. Assets: $896K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Pacific Rainbow Foundation?
The Employer Identification Number (EIN) for Pacific Rainbow Foundation is 201965878. 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 Pacific Rainbow Foundation spend its money?
Pacific Rainbow Foundation allocates 80% to programs, 20% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Pacific Rainbow Foundation's tax-exempt status?
You can verify Pacific Rainbow Foundation's tax-exempt status using EIN 201965878 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
Pacific Rainbow Foundation exhibits inconsistent financial performance over the past decade, with significant fluctuations in revenue and expenses. While the organization reported a positive net income in 2023 ($191,327 revenue vs. $151,030 expenses), it has experienced several years of operating deficits, notably in 2022 ($35,382 revenue vs. $86,684 expenses) and 2020 ($34,228 revenue vs. $99,229 expenses). The organization's assets have remained relatively stable, hovering around $900,000, suggesting a reliance on existing reserves rather than consistent operational growth.
The lack of reported officer compensation across all filings indicates either a fully volunteer-run leadership or that compensation is not disclosed in a manner that is easily identifiable as officer compensation on the 990 form. This could be a strength in terms of minimizing administrative overhead, but it also raises questions about the sustainability of leadership and the capacity for professional management. The organization's liabilities have consistently been reported as minimal ($0 or $1), which is a positive indicator of financial stability and low debt burden.
Overall, the foundation demonstrates a commitment to minimizing administrative costs, as evidenced by the zero officer compensation. However, the erratic revenue streams and frequent operating deficits suggest potential challenges in long-term financial planning and fundraising effectiveness. Greater transparency regarding program spending breakdown would further enhance the assessment of its spending efficiency.