Quick charity verification for Potential Inc (EIN: 202585393)
Verdict: Potential Inc appears trustworthy
88/100Mission Score
$7.0MRevenue
$1.5MAssets
1Red Flags
4Strengths
Red Flags
Consistent 0% officer compensation reported, which is unusual for an organization of this scale and may obscure actual executive remuneration.
Strengths
Consistent revenue growth over the past decade, from $1.6M in 2014 to $5.9M in 2023.
Strong program spending ratio, indicating a high percentage of funds directly supporting its mission.
Positive net income in the latest filing (2023), demonstrating financial stability.
Significant asset growth over time, building organizational capacity and reserves.
Spending Breakdown
How Potential 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 Potential Inc
Is Potential Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Potential Inc (EIN: 202585393) appears trustworthy. Mission Score: 88/100. 1 red flag identified, 4 strengths noted.
Is Potential Inc a good charity to donate to?
Potential Inc has a Mission Score of 88/100. Revenue: $7.0M. Assets: $1.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Potential Inc?
The Employer Identification Number (EIN) for Potential Inc is 202585393. 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 Potential Inc spend its money?
Potential Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Potential Inc's tax-exempt status?
You can verify Potential Inc's tax-exempt status using EIN 202585393 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
Potential Inc. demonstrates a generally stable financial trajectory, with recent filings showing consistent revenue growth from $1.6 million in 2014 to nearly $6 million in 2023. The organization has maintained a healthy program spending ratio, indicating a strong focus on its mission. While there have been periods of deficit spending, such as in 2021 and 2022, the organization rebounded with a surplus in 2023, reporting revenues of $5,912,726 against expenses of $5,703,167. This suggests effective financial management and adaptability.
The organization's assets have grown significantly over the decade, from $122,237 in 2014 to $744,030 in 2023, indicating a build-up of reserves. Liabilities have also fluctuated but appear manageable relative to assets. The consistent reporting of 0% officer compensation across all available filings is a notable aspect of its financial transparency and efficiency, suggesting that executive leadership is either unpaid or compensated through other means not categorized as officer compensation, which warrants further investigation for a complete picture. Overall, Potential Inc. appears to be a financially sound organization with a strong commitment to its programmatic goals.