Quick charity verification for People Advocating Recovery Inc (EIN: 201664735)
Verdict: People Advocating Recovery Inc appears trustworthy
75/100Mission Score
$354KRevenue
$646KAssets
3Red Flags
3Strengths
Red Flags
Significant increase in liabilities from $327 in 2022 to $378,778 in 2023.
Expenses exceeded revenue in 2023 ($333,889 vs. $237,561) and 2021 ($595,520 vs. $552,395), indicating deficit spending.
Fluctuating revenue and expense patterns suggest potential instability in financial planning.
Strengths
Consistent reporting of 0% officer compensation across all filings, indicating a strong commitment to minimizing executive overhead.
Significant growth in assets from $1,841 in 2015 to $685,756 in 2023.
Clear mission focus as indicated by NTEE code E70 (Substance Abuse Prevention & Treatment).
Spending Breakdown
How People Advocating Recovery Inc allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
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 People Advocating Recovery Inc
Is People Advocating Recovery Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, People Advocating Recovery Inc (EIN: 201664735) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is People Advocating Recovery Inc a good charity to donate to?
People Advocating Recovery Inc has a Mission Score of 75/100. Revenue: $354K. Assets: $646K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for People Advocating Recovery Inc?
The Employer Identification Number (EIN) for People Advocating Recovery Inc is 201664735. 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 People Advocating Recovery Inc spend its money?
People Advocating Recovery Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify People Advocating Recovery Inc's tax-exempt status?
You can verify People Advocating Recovery Inc's tax-exempt status using EIN 201664735 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
People Advocating Recovery Inc. demonstrates a fluctuating financial performance over the past several years. While the organization has shown periods of strong revenue growth, such as in 2019 with $874,097, it has also experienced years where expenses exceeded revenue, notably in 2023 ($333,889 expenses vs. $237,561 revenue) and 2021 ($595,520 expenses vs. $552,395 revenue). This indicates a need for more consistent financial management to ensure long-term sustainability. The organization's assets have grown significantly, from $1,841 in 2015 to $685,756 in 2023, which is a positive trend, though liabilities also saw a substantial increase in 2023 to $378,778, warranting closer examination.
Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to fully assess. However, the consistent reporting of 0% officer compensation across all available filings suggests a commitment to minimizing overhead in this specific area, which is a positive indicator for donor confidence. The organization's NTEE code E70 (Substance Abuse Prevention & Treatment) suggests a clear program focus. The lack of officer compensation also contributes positively to transparency.
Overall, People Advocating Recovery Inc. appears to be a developing organization with significant asset growth but also some volatility in its annual financial performance. The absence of officer compensation is a strong point for efficiency and transparency, but the recent increase in liabilities and periods of deficit spending suggest areas for improvement in financial planning and stability.