Large discrepancy between reported revenue and expenses, requiring deeper financial analysis to understand operational efficiency.
Lack of detailed breakdown on how significant revenue is utilized beyond general expenses in summary data.
Strengths
Strong and consistent growth in assets, reaching over $827 million in 2022.
Substantial revenue generation, exceeding $100 million in 2022.
Long history of IRS 990 filings, indicating established operations.
Spending Breakdown
How Phipps Houses 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 Phipps Houses
Is Phipps Houses a legitimate charity?
Based on AI analysis of IRS 990 filings, Phipps Houses (EIN: 111187480) appears trustworthy. Mission Score: 70/100. 3 red flags identified, 3 strengths noted.
Is Phipps Houses a good charity to donate to?
Phipps Houses has a Mission Score of 70/100. Revenue: $0. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Phipps Houses?
The Employer Identification Number (EIN) for Phipps Houses is 111187480. 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 Phipps Houses spend its money?
Phipps Houses allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Phipps Houses's tax-exempt status?
You can verify Phipps Houses's tax-exempt status using EIN 111187480 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
Phipps Houses demonstrates strong financial health with consistently growing assets and substantial revenue. In 2022, the organization reported over $101 million in revenue and assets exceeding $827 million, indicating a robust financial position. However, a notable aspect of their financial reporting is the significant disparity between reported revenue and expenses. For instance, in 2022, expenses were only $21 million against $101 million in revenue, and similar patterns are observed in prior years. This suggests that a large portion of their revenue is likely related to non-operating activities, such as capital contributions for housing development, rather than direct program service expenses, which is typical for organizations involved in real estate development and affordable housing.
The organization's spending efficiency, as measured by the ratio of expenses to revenue, appears very low if one considers all revenue as available for operational spending. However, given their NTEE code (L20 - Housing Development, Construction & Management), it's probable that much of the revenue is restricted for capital projects, and the reported expenses reflect administrative and program delivery costs. The consistent reporting of 0% officer compensation across all filings is unusual and warrants further investigation to understand how executive leadership is compensated, or if compensation is reported under a different entity or category. This lack of detail on executive pay impacts transparency.
Overall, while Phipps Houses appears financially strong with significant assets and revenue growth, the high revenue-to-expense ratio and the absence of reported officer compensation in the 990s suggest that a deeper dive into their financial statements beyond the summary 990 data is necessary for a complete understanding of their operational efficiency and transparency regarding executive remuneration. The organization's primary focus seems to be on asset accumulation and housing development, which aligns with its mission.