Quick charity verification for Palace Head Foundation Inc (EIN: 201740632)
Verdict: Palace Head Foundation Inc appears trustworthy
75/100Mission Score
$1.2MRevenue
$14.8MAssets
1Red Flags
4Strengths
Red Flags
Consistent operational deficits (expenses exceeding revenue) in recent years, such as $911,792 expenses vs. $433,998 revenue in 2024, which, while common for foundations, warrants monitoring.
Strengths
Strong and growing asset base, increasing from $11,566,159 in 2012 to $12,539,361 in 2024, providing long-term financial security.
Minimal liabilities reported ($1 in most years), indicating excellent financial health and low risk.
Consistent reporting of 0% officer compensation, suggesting a highly efficient or volunteer-driven executive leadership structure.
Consistent IRS 990 filing history over 10 periods, demonstrating good transparency and compliance.
Spending Breakdown
How Palace Head Foundation Inc allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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 Palace Head Foundation Inc
Is Palace Head Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Palace Head Foundation Inc (EIN: 201740632) appears trustworthy. Mission Score: 75/100. 1 red flag identified, 4 strengths noted.
Is Palace Head Foundation Inc a good charity to donate to?
Palace Head Foundation Inc has a Mission Score of 75/100. Revenue: $1.2M. Assets: $14.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Palace Head Foundation Inc?
The Employer Identification Number (EIN) for Palace Head Foundation Inc is 201740632. 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 Palace Head Foundation Inc spend its money?
Palace Head Foundation Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Palace Head Foundation Inc's tax-exempt status?
You can verify Palace Head Foundation Inc's tax-exempt status using EIN 201740632 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
Palace Head Foundation Inc. demonstrates a consistent financial pattern, primarily operating as a grant-making foundation with substantial assets. Over the past three years (2022-2024), the organization has consistently reported expenses exceeding revenue, indicating a reliance on its significant asset base to fund operations. For instance, in 2024, expenses were $911,792 against revenues of $433,998. This trend suggests a planned distribution strategy rather than a focus on generating operating surpluses. The organization's assets have grown steadily over the long term, from $11,566,159 in 2012 to $12,539,361 in 2024, indicating sound asset management despite recent operational deficits.
The foundation's spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which are not provided in the summary data. However, the consistent reporting of zero officer compensation across all filings suggests a lean operational structure at the executive level, which is a positive indicator for minimizing administrative overhead. The organization's transparency is good in terms of filing its IRS 990s consistently, but the lack of detailed expense categories limits a deeper analysis of its spending efficiency. The minimal liabilities reported ($1 in most years) also points to strong financial management and low financial risk.
Overall, Palace Head Foundation appears to be a well-managed private foundation, effectively utilizing its endowment to support its mission. While recent years show expenses exceeding revenue, this is not necessarily a red flag for a foundation that distributes grants from its principal. The consistent asset growth and minimal liabilities underscore its financial stability. A more granular breakdown of expenses would further enhance transparency and allow for a more precise evaluation of spending efficiency.