Quick charity verification for Positive Changes Inc (EIN: 203760669)
Verdict: Positive Changes Inc has notable concerns
20/100Mission Score
$0Revenue
$0Assets
4Red Flags
2Strengths
Red Flags
Zero revenue and assets in the latest filing, indicating potential cessation of operations.
Consistent operational deficits, with expenses exceeding revenue in all reported periods (e.g., $30,788 expenses vs. $21,547 revenue in 2016).
Rapidly increasing liabilities, growing from $90,819 in 2011 to $156,706 in 2016, far outstripping assets.
Assets are consistently very low relative to liabilities, indicating severe financial instability (e.g., $5,235 assets vs. $156,706 liabilities in 2016).
Strengths
Consistent filing of IRS Form 990s, demonstrating basic compliance.
No reported officer compensation, suggesting a volunteer-driven or highly cost-conscious leadership structure.
Spending Breakdown
How Positive Changes 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 Positive Changes Inc
Is Positive Changes Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Positive Changes Inc (EIN: 203760669) has notable concerns. Mission Score: 20/100. 4 red flags identified, 2 strengths noted.
Is Positive Changes Inc a good charity to donate to?
Positive Changes Inc has a Mission Score of 20/100. Revenue: $0. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Positive Changes Inc?
The Employer Identification Number (EIN) for Positive Changes Inc is 203760669. 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 Positive Changes Inc spend its money?
Positive Changes Inc allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Positive Changes Inc's tax-exempt status?
You can verify Positive Changes Inc's tax-exempt status using EIN 203760669 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
Positive Changes Inc. appears to be a very small, financially struggling organization. With zero revenue and assets in its latest filing, and a history of expenses consistently exceeding revenue, the organization faces significant sustainability challenges. For example, in 2016, expenses were $30,788 against revenues of $21,547, contributing to a growing deficit. The organization's liabilities have also steadily increased over the years, from $90,819 in 2011 to $156,706 in 2016, far outweighing its minimal assets. This indicates a precarious financial position and a potential inability to meet its obligations.
The lack of detailed expense breakdowns in the provided data makes it difficult to assess spending efficiency beyond the overall deficit. However, the consistent operational losses suggest that the organization is not effectively managing its resources to cover its costs. The absence of officer compensation reported across all filings suggests that leadership may be unpaid, which is common for very small or volunteer-run organizations, but it doesn't mitigate the underlying financial instability. Without revenue, the organization's future operations are highly uncertain.
Transparency is limited by the available data, particularly regarding program specifics and detailed expense categories. The consistent filing of IRS Form 990s demonstrates a basic level of compliance, but the financial health itself raises questions about the organization's long-term viability and impact. The significant and growing liabilities relative to assets are a major concern for any potential donor or stakeholder.