Declining asset base: Assets decreased from $366,458 in 2021 to $260,119 in 2023.
Negative net income in multiple recent years, indicating unsustainable financial operations.
Lack of detailed expense breakdown in provided data makes it difficult to assess spending efficiency.
Strengths
Zero officer compensation reported across all filings, indicating no executive salary burden.
Minimal liabilities ($1 in recent years), suggesting no significant debt burden.
Spending Breakdown
How Ray Foundation 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 Ray Foundation
Is Ray Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Ray Foundation (EIN: 201209964) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
Is Ray Foundation a good charity to donate to?
Ray Foundation has a Mission Score of 45/100. Revenue: $27K. Assets: $260K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Ray Foundation?
The Employer Identification Number (EIN) for Ray Foundation is 201209964. 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 Ray Foundation spend its money?
Ray Foundation allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Ray Foundation's tax-exempt status?
You can verify Ray Foundation's tax-exempt status using EIN 201209964 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 Ray Foundation exhibits a concerning financial trend, with expenses consistently exceeding revenue in recent years. For example, in 2023, revenue was $1,660 while expenses were $28,935, and in 2022, revenue was $4,699 against expenses of $55,066. This indicates a reliance on drawing down assets or previous surpluses, as evidenced by the decline in assets from $366,458 in 2021 to $260,119 in 2023. While the organization reports zero officer compensation, which is a positive for efficiency, the overall financial sustainability is questionable given the persistent operating deficits.
The organization's spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses. However, the significant and consistent negative net income suggests that current operational costs are not being covered by incoming funds. The lack of reported liabilities ($1 in recent years) is a positive indicator of not accumulating debt, but it doesn't offset the underlying issue of spending more than it earns. Transparency regarding the specific allocation of its expenses would be beneficial for a more thorough evaluation.