Quick charity verification for Rachels Tea House (EIN: 202867794)
Verdict: Rachels Tea House appears trustworthy
90/100Mission Score
$28KRevenue
$58KAssets
0Red Flags
5Strengths
No red flags identified.
Strengths
Consistent 0% officer compensation across all filings, indicating high efficiency in leadership costs.
Zero liabilities reported in all filings, demonstrating strong financial management and no debt.
Significant asset growth from $2,623 in 2014 to $68,309 in 2023, enhancing long-term stability.
Consistent filing of IRS 990s over 13 periods, indicating strong transparency and compliance.
Revenue generally exceeding expenses in recent years, allowing for asset accumulation and sustainable operations (e.g., 2023 revenue $68,615 vs. expenses $43,092).
Spending Breakdown
How Rachels Tea House 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 Rachels Tea House
Is Rachels Tea House a legitimate charity?
Based on AI analysis of IRS 990 filings, Rachels Tea House (EIN: 202867794) appears trustworthy. Mission Score: 90/100. 0 red flags identified, 5 strengths noted.
Is Rachels Tea House a good charity to donate to?
Rachels Tea House has a Mission Score of 90/100. Revenue: $28K. Assets: $58K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Rachels Tea House?
The Employer Identification Number (EIN) for Rachels Tea House is 202867794. 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 Rachels Tea House spend its money?
Rachels Tea House allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Rachels Tea House's tax-exempt status?
You can verify Rachels Tea House's tax-exempt status using EIN 202867794 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
Rachels Tea House demonstrates a generally stable financial position, with assets growing significantly in recent years, reaching $68,309 in 2023 from $17,427 in 2021. The organization consistently operates with zero liabilities, indicating strong financial management and no reliance on debt. Revenue has shown considerable fluctuation over its history, with a notable peak of $68,615 in 2023, suggesting varying levels of donor support or program activity.
The organization's spending efficiency appears sound, as expenses have generally remained below revenue in most recent periods, allowing for asset accumulation. For instance, in 2023, revenue was $68,615 against expenses of $43,092. The consistent reporting of 0% officer compensation across all filings indicates a volunteer-led or very lean administrative structure, which is a positive sign for donor confidence regarding funds directly supporting the mission.
Transparency is high given the consistent filing of IRS Form 990s over 13 periods, providing a comprehensive historical financial record. The absence of officer compensation also simplifies financial scrutiny, as there are no complex executive pay structures to analyze. Overall, Rachels Tea House appears to be a financially prudent and transparent organization.