Quick charity verification for Professional Beauty Association (EIN: 201585064)
Verdict: Professional Beauty Association appears trustworthy
75/100Mission Score
$3.4MRevenue
$24.3MAssets
3Red Flags
3Strengths
Red Flags
Significant revenue volatility, with a sharp drop from $24.9M in 2022 to $2.3M in 2023.
Expenses exceeding revenue in multiple years (e.g., 2023, 2021, 2020, 2017, 2016, 2015, 2014), indicating reliance on reserves or other funding.
Unusually consistent 0% officer compensation reported across all filings for an organization with over $24 million in assets, which may warrant further investigation into compensation structures.
Strengths
Consistent growth in assets from $7.5M in 2014 to $26.3M in 2023, indicating strong financial management or investment.
No reported officer compensation, suggesting efficient use of funds or a unique compensation model.
Long filing history (14 filings) demonstrates consistent compliance and transparency in reporting to the IRS.
Spending Breakdown
How Professional Beauty Association 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 Professional Beauty Association
Is Professional Beauty Association a legitimate charity?
Based on AI analysis of IRS 990 filings, Professional Beauty Association (EIN: 201585064) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is Professional Beauty Association a good charity to donate to?
Professional Beauty Association has a Mission Score of 75/100. Revenue: $3.4M. Assets: $24.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Professional Beauty Association?
The Employer Identification Number (EIN) for Professional Beauty Association is 201585064. 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 Professional Beauty Association spend its money?
Professional Beauty Association allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Professional Beauty Association's tax-exempt status?
You can verify Professional Beauty Association's tax-exempt status using EIN 201585064 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
The Professional Beauty Association exhibits fluctuating financial health over the past decade. While the organization reported significant revenue in 2022 ($24,970,282), its 2023 revenue dropped to $2,344,734, accompanied by expenses exceeding revenue ($4,350,599). This indicates a reliance on prior year surpluses or asset utilization to cover operational costs in some periods. The organization's assets have grown substantially from $7,508,697 in 2014 to $26,329,162 in 2023, suggesting good asset management or accumulation, though liabilities have also increased, albeit at a slower pace. The consistent reporting of 0% officer compensation across all filings indicates strong transparency regarding executive pay, as it suggests either no compensation or that it falls below reporting thresholds, which is a positive sign for a nonprofit.