Quick charity verification for Reach Out & Care Wheels Inc (EIN: 200402658)
Verdict: Reach Out & Care Wheels Inc appears trustworthy
75/100Mission Score
$175KRevenue
$197KAssets
2Red Flags
3Strengths
Red Flags
Expenses exceeding revenue in recent periods (2022 and 2023), leading to net losses.
Declining assets from a peak of $332,839 in 2020 to $170,643 in 2023.
Strengths
Consistent 0% officer compensation across all reported years, indicating efficient use of funds.
Long operational history with 14 IRS 990 filings, demonstrating stability and commitment.
Consistent transparency through regular IRS 990 submissions.
Spending Breakdown
How Reach Out & Care Wheels Inc 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 Reach Out & Care Wheels Inc
Is Reach Out & Care Wheels Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Reach Out & Care Wheels Inc (EIN: 200402658) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is Reach Out & Care Wheels Inc a good charity to donate to?
Reach Out & Care Wheels Inc has a Mission Score of 75/100. Revenue: $175K. Assets: $197K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Reach Out & Care Wheels Inc?
The Employer Identification Number (EIN) for Reach Out & Care Wheels Inc is 200402658. 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 Reach Out & Care Wheels Inc spend its money?
Reach Out & Care Wheels Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Reach Out & Care Wheels Inc's tax-exempt status?
You can verify Reach Out & Care Wheels Inc's tax-exempt status using EIN 200402658 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
Reach Out & Care Wheels Inc. demonstrates a consistent operational history with 14 filings, indicating a stable presence in its community. The organization's financial health shows some fluctuations, with recent years (2022 and 2023) reporting expenses exceeding revenue, leading to net losses of $102,487 and $25,400 respectively. This trend, if continued, could impact long-term sustainability, although assets remain relatively stable at $170,643 in 2023. The organization's NTEE code P582 suggests a focus on transportation services, which aligns with its name.
Spending efficiency appears to be a strength, as the organization consistently reports 0% officer compensation across all available filings. This suggests that resources are primarily directed towards programmatic activities and operational costs rather than executive salaries. However, without a detailed breakdown of program, administrative, and fundraising expenses in the provided data, a precise assessment of spending efficiency is challenging. The consistent filing of IRS Form 990s over many years indicates a commitment to transparency.
Overall, while the recent negative net income warrants attention, the absence of officer compensation and the long filing history are positive indicators. The organization appears to be transparent in its reporting, but a deeper dive into the allocation of its expenses would provide a clearer picture of its spending efficiency.