Quick charity verification for Prevention Works Inc (EIN: 161037314)
Verdict: Prevention Works Inc appears trustworthy
90/100Mission Score
$1.8MRevenue
$345KAssets
1Red Flags
4Strengths
Red Flags
Consistent 0% officer compensation reported, which is highly unusual for an organization with over $1.5M in revenue and may obscure actual leadership costs.
Strengths
Consistent revenue growth over the past decade, from $587,036 in 2014 to $1,500,442 in 2023.
Strong program spending efficiency, with expenses closely tracking revenue and a high proportion likely dedicated to programs.
Healthy asset growth and low liabilities, indicating sound financial management and stability.
Positive net assets trend, with assets consistently exceeding liabilities.
Spending Breakdown
How Prevention Works Inc allocates its funds across programs, administration, and fundraising.
95%
Program Spending
Healthy — majority goes to mission
5%
Admin Costs
Reasonable — admin costs in check
0%
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 Prevention Works Inc
Is Prevention Works Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Prevention Works Inc (EIN: 161037314) appears trustworthy. Mission Score: 90/100. 1 red flag identified, 4 strengths noted.
Is Prevention Works Inc a good charity to donate to?
Prevention Works Inc has a Mission Score of 90/100. Revenue: $1.8M. Assets: $345K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Prevention Works Inc?
The Employer Identification Number (EIN) for Prevention Works Inc is 161037314. 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 Prevention Works Inc spend its money?
Prevention Works Inc allocates 95% to programs, 5% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Prevention Works Inc's tax-exempt status?
You can verify Prevention Works Inc's tax-exempt status using EIN 161037314 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
Prevention Works Inc demonstrates consistent financial growth and strong program focus over the past decade. The organization's revenue has steadily increased from $587,036 in 2014 to $1,500,442 in 2023, indicating growing support and operational capacity. Expenses have closely tracked revenue, suggesting efficient use of funds to deliver services. The organization maintains a healthy asset base, growing from $193,247 in 2014 to $324,643 in 2023, providing a buffer for operations. Liabilities have remained relatively low compared to assets, indicating sound financial management.
Prevention Works Inc exhibits excellent spending efficiency, with a very high percentage of its expenses dedicated to program services. The reported 0% officer compensation across all available filings is a significant indicator of either a volunteer-led executive team or compensation being reported under other expense categories, which warrants further investigation for complete transparency. However, assuming the 0% is accurate for direct officer compensation, it suggests a highly cost-effective leadership structure. The organization's consistent growth and low liabilities point to a stable and well-managed financial operation.
Overall, Prevention Works Inc appears to be a financially healthy and efficient nonprofit. Its consistent growth, strong asset position, and apparent dedication of resources to its mission are commendable. The lack of reported officer compensation is a notable point for transparency, potentially indicating a highly lean administrative structure or a need for more detailed reporting on how leadership is compensated if not purely volunteer.