Quick charity verification for Palm House Recovery Centers Inc (EIN: 203743552)
Verdict: Palm House Recovery Centers Inc appears trustworthy
80/100Mission Score
$762KRevenue
$153KAssets
2Red Flags
4Strengths
Red Flags
Periods of deficit spending (e.g., 2022, 2020) where expenses exceeded revenue.
Fluctuating revenue stream, indicating potential instability in funding or service demand.
Strengths
Consistent reporting with 13 IRS 990 filings.
0% officer compensation reported across all filings, indicating strong commitment to mission.
Recent positive trend in asset growth from $26,799 in 2022 to $112,500 in 2023.
Long operational history with consistent revenue generation over $600,000 annually.
Spending Breakdown
How Palm House Recovery Centers 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 Palm House Recovery Centers Inc
Is Palm House Recovery Centers Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Palm House Recovery Centers Inc (EIN: 203743552) appears trustworthy. Mission Score: 80/100. 2 red flags identified, 4 strengths noted.
Is Palm House Recovery Centers Inc a good charity to donate to?
Palm House Recovery Centers Inc has a Mission Score of 80/100. Revenue: $762K. Assets: $153K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Palm House Recovery Centers Inc?
The Employer Identification Number (EIN) for Palm House Recovery Centers Inc is 203743552. 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 Palm House Recovery Centers Inc spend its money?
Palm House Recovery Centers Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Palm House Recovery Centers Inc's tax-exempt status?
You can verify Palm House Recovery Centers Inc's tax-exempt status using EIN 203743552 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
Palm House Recovery Centers Inc. demonstrates a fluctuating financial performance over the past decade. While the organization has consistently generated over $600,000 in revenue annually, there have been periods where expenses exceeded revenue, such as in 2022 ($638,851 expenses vs. $635,537 revenue) and 2020 ($1,135,083 expenses vs. $1,101,339 revenue). This indicates a need for careful financial management to ensure long-term sustainability. The organization's assets have shown some growth, increasing from $26,799 in 2022 to $112,500 in 2023, which is a positive trend.
The organization's spending efficiency appears to be reasonable, with a significant portion of expenses likely directed towards program services, given the NTEE code for substance abuse treatment. However, without a detailed breakdown of program, administrative, and fundraising expenses from the provided data, a precise assessment of spending efficiency is challenging. The consistent reporting of 0% officer compensation across all filings suggests a commitment to directing funds towards the mission rather than executive salaries, which is a strong indicator of financial prudence.
Transparency is generally good, with 13 filings available, indicating consistent reporting to the IRS. The absence of officer compensation is a notable positive for transparency and public trust. However, for a more complete picture, a detailed functional expense breakdown would be beneficial to fully understand how funds are allocated across different activities.