Quick charity verification for Penates Inc (EIN: 113138729)
Verdict: Penates Inc appears trustworthy
70/100Mission Score
$453KRevenue
$848KAssets
4Red Flags
3Strengths
Red Flags
Significant and unexplained drop in latest reported revenue to $453,144 from multi-million dollar figures in prior years.
History of fluctuating financial performance, including net losses in 2021 and 2022.
Liabilities frequently exceeded assets in several past periods (e.g., 2021, 2019, 2018, 2017, 2016), indicating potential solvency concerns.
Consistent 0% officer compensation, which is unusual for an organization with multi-million dollar revenues and could indicate a lack of transparency in reporting or reliance on unpaid leadership.
Strengths
Positive net income reported in 2023 ($2,700,738 revenue vs. $2,438,298 expenses), showing a recent return to financial surplus.
Consistent reporting of 0% officer compensation, suggesting a high proportion of resources are directed away from executive salaries.
Long operational history with 12 filings, indicating sustained presence in its mission area.
Spending Breakdown
How Penates 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 Penates Inc
Is Penates Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Penates Inc (EIN: 113138729) appears trustworthy. Mission Score: 70/100. 4 red flags identified, 3 strengths noted.
Is Penates Inc a good charity to donate to?
Penates Inc has a Mission Score of 70/100. Revenue: $453K. Assets: $848K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Penates Inc?
The Employer Identification Number (EIN) for Penates Inc is 113138729. 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 Penates Inc spend its money?
Penates Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Penates Inc's tax-exempt status?
You can verify Penates Inc's tax-exempt status using EIN 113138729 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
Penates Inc. demonstrates a fluctuating financial performance over the past decade. While the organization reported a positive net income in 2023 ($2,700,738 revenue vs. $2,438,298 expenses), this follows a period of net losses in 2021 and 2022. The latest reported revenue of $453,144 is significantly lower than previous years, which warrants further investigation into the cause of this sharp decline. The organization consistently reports 0% officer compensation, which is a positive indicator of resource allocation directly to its mission rather than executive salaries.
The organization's asset base has shown considerable volatility, peaking at $1,042,267 in 2017 and dropping to $306,069 in 2022 before recovering to $647,023 in 2023. Liabilities have also been substantial, often exceeding assets in earlier years, indicating potential financial strain. The NTEE code L410 suggests a focus on residential care, which often entails significant operational costs. The lack of reported officer compensation enhances transparency regarding executive pay, but the overall financial stability could be improved.
Given the significant drop in the latest reported revenue to $453,144 compared to multi-million dollar revenues in prior years, there's a concern about the organization's current operational scale and funding. While the 2023 filing showed a surplus, the long-term trend of fluctuating financial health and the recent sharp decline in revenue suggest a need for careful monitoring of its financial sustainability and program delivery capacity.