Quick charity verification for Rainbow Of Challenges Homes Of Bradley (EIN: 201933279)
Verdict: Rainbow Of Challenges Homes Of Bradley shows mixed signals
45/100Mission Score
$70KRevenue
$303KAssets
3Red Flags
2Strengths
Red Flags
Consistent operational deficits (expenses exceeding revenue in most periods).
Significant decline in assets over the past nine years, from $425,712 in 2015 to $327,591 in 2023.
Dramatic and unexplained increase in liabilities from $3,575 in 2022 to $591,103 in 2023, far exceeding current assets.
Strengths
No reported officer compensation, indicating efficient use of funds in executive salaries.
Consistent revenue generation, albeit at a level below expenses.
Spending Breakdown
How Rainbow Of Challenges Homes Of Bradley allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
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 Rainbow Of Challenges Homes Of Bradley
Is Rainbow Of Challenges Homes Of Bradley a legitimate charity?
Based on AI analysis of IRS 990 filings, Rainbow Of Challenges Homes Of Bradley (EIN: 201933279) shows mixed signals. Mission Score: 45/100. 3 red flags identified, 2 strengths noted.
Is Rainbow Of Challenges Homes Of Bradley a good charity to donate to?
Rainbow Of Challenges Homes Of Bradley has a Mission Score of 45/100. Revenue: $70K. Assets: $303K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Rainbow Of Challenges Homes Of Bradley?
The Employer Identification Number (EIN) for Rainbow Of Challenges Homes Of Bradley is 201933279. 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 Rainbow Of Challenges Homes Of Bradley spend its money?
Rainbow Of Challenges Homes Of Bradley allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Rainbow Of Challenges Homes Of Bradley's tax-exempt status?
You can verify Rainbow Of Challenges Homes Of Bradley's tax-exempt status using EIN 201933279 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
Rainbow Of Challenges Homes Of Bradley appears to be a small organization with consistent revenue and expenses, typically operating at a slight deficit. For example, in 2023, revenue was $59,689 against expenses of $69,918, indicating a $10,229 shortfall. This pattern of expenses exceeding revenue is consistent across most of the reported periods, suggesting a reliance on existing assets or other funding sources to cover operational costs. The organization's assets have shown a gradual decline over the years, from $425,712 in 2015 to $327,591 in 2023, which aligns with the consistent operational deficits. A significant red flag is the substantial increase in liabilities in the 2023 period, jumping from $3,575 in 2022 to $591,103, which warrants further investigation as it far exceeds their assets and could indicate severe financial distress or a major accounting change.
The organization reports 0% officer compensation across all filings, which is a positive indicator for spending efficiency in that area. However, without a detailed breakdown of expenses (program, administrative, fundraising) from the provided data, it's challenging to fully assess spending efficiency. The consistent operational deficits, coupled with declining assets, suggest that while executive compensation is not a concern, the overall financial model may not be sustainable in the long term without significant changes or new funding streams. The sudden spike in liabilities in the latest filing is a critical point for concern regarding financial health and transparency.