Quick charity verification for Pennyroyal Housing Alternative Inc (EIN: 201720790)
Verdict: Pennyroyal Housing Alternative Inc shows mixed signals
45/100Mission Score
$304KRevenue
$1.8MAssets
4Red Flags
2Strengths
Red Flags
Consistent operating deficits, with expenses exceeding revenue in most recent years (e.g., 2023: $90,728 expenses vs. $45,951 revenue).
Declining asset base from $2,284,348 in 2014 to $1,923,449 in 2023.
Liabilities frequently exceed assets, indicating a negative net asset position (e.g., 2023: $2,005,283 liabilities vs. $1,923,449 assets).
Negative revenue reported in multiple years (e.g., $-6,932 in 2018, $-40,288 in 2017, $-19,765 in 2016).
Strengths
Consistent reporting of 0% officer compensation, indicating no executive pay from the organization.
Long history of IRS 990 filings (12 filings), suggesting a commitment to transparency.
Spending Breakdown
How Pennyroyal Housing Alternative Inc allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
Admin Costs
Reasonable — admin costs in check
10%
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 Pennyroyal Housing Alternative Inc
Is Pennyroyal Housing Alternative Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Pennyroyal Housing Alternative Inc (EIN: 201720790) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
Is Pennyroyal Housing Alternative Inc a good charity to donate to?
Pennyroyal Housing Alternative Inc has a Mission Score of 45/100. Revenue: $304K. Assets: $1.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Pennyroyal Housing Alternative Inc?
The Employer Identification Number (EIN) for Pennyroyal Housing Alternative Inc is 201720790. 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 Pennyroyal Housing Alternative Inc spend its money?
Pennyroyal Housing Alternative Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Pennyroyal Housing Alternative Inc's tax-exempt status?
You can verify Pennyroyal Housing Alternative Inc's tax-exempt status using EIN 201720790 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
Pennyroyal Housing Alternative Inc. exhibits a concerning financial trend, with expenses consistently exceeding revenue in recent years. For example, in 2023, expenses were $90,728 against revenue of $45,951, indicating a significant operating deficit. This pattern of spending more than it earns is a long-standing issue, as seen in 2022 ($81,019 expenses vs. $88,992 revenue) and 2021 ($91,517 expenses vs. $94,606 revenue), though the deficit was smaller in those years. The organization's assets have also shown a gradual decline from $2,284,348 in 2014 to $1,923,449 in 2023, while liabilities have remained substantial, often exceeding assets, as in 2023 where liabilities were $2,005,283. This suggests potential long-term solvency challenges. The consistent reporting of 0% officer compensation indicates good transparency regarding executive pay, but the overall financial health requires close monitoring.
The organization's financial 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 persistent operating deficits raise questions about the sustainability of its current operations. While the NTEE code L20 (Housing/Shelter) suggests a clear program focus, the financial data points to an organization struggling to cover its costs. The lack of detailed expense categories in the provided data limits a comprehensive assessment of spending efficiency, but the overall financial trajectory is a significant concern for potential donors or stakeholders.