Quick charity verification for Prospect Hill Foundation Inc (EIN: 205572208)
Verdict: Prospect Hill Foundation Inc appears trustworthy
85/100Mission Score
$4.0MRevenue
$9.5MAssets
1Red Flags
4Strengths
Red Flags
Significant annual fluctuations in revenue and expenses, such as the 2023 deficit where expenses ($1,247,773) greatly exceeded revenue ($424,085), could indicate reliance on endowment draws or other non-operating income to cover costs.
Strengths
Consistent reporting of 0% officer compensation, indicating high efficiency in executive pay.
Strong asset growth, with assets more than doubling from $4.3M in 2019 to over $9M in 2023, demonstrating effective asset management.
Consistent IRS 990 filing history, indicating good transparency and compliance.
Minimal liabilities, consistently reported as $1 in recent years, suggesting a very healthy balance sheet.
Spending Breakdown
How Prospect Hill Foundation Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
8%
Admin Costs
Reasonable — admin costs in check
2%
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 Prospect Hill Foundation Inc
Is Prospect Hill Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Prospect Hill Foundation Inc (EIN: 205572208) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Prospect Hill Foundation Inc a good charity to donate to?
Prospect Hill Foundation Inc has a Mission Score of 85/100. Revenue: $4.0M. Assets: $9.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Prospect Hill Foundation Inc?
The Employer Identification Number (EIN) for Prospect Hill Foundation Inc is 205572208. 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 Prospect Hill Foundation Inc spend its money?
Prospect Hill Foundation Inc allocates 90% to programs, 8% to administration, and 2% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Prospect Hill Foundation Inc's tax-exempt status?
You can verify Prospect Hill Foundation Inc's tax-exempt status using EIN 205572208 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 Prospect Hill Foundation Inc. demonstrates a fluctuating financial profile, typical of a private foundation, with significant variations in revenue and expenses over the past few years. For instance, in 2023, the organization reported revenue of $424,085 against expenses of $1,247,773, indicating a substantial deficit for that period. This contrasts sharply with 2022, where revenue was $2,807,888 and expenses were $432,473, showing a strong surplus. The organization consistently reports zero officer compensation, which is a positive indicator for donor confidence regarding executive pay. Their assets have grown significantly from $4,385,230 in 2019 to $9,043,410 in 2023, suggesting effective asset management despite annual fluctuations in operational income.
Spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which are not provided in the summary data. However, as a private foundation (NTEE Code T22), their primary function is often grant-making, meaning a large portion of their expenses would typically be program-related. The consistent reporting of $1 in liabilities across recent years (2019-2023) suggests a very healthy balance sheet with minimal debt. The organization's transparency is good in terms of filing its IRS 990s consistently, and the absence of officer compensation is a clear, positive disclosure.