Quick charity verification for Reading Power Inc (EIN: 202916846)
Verdict: Reading Power Inc appears trustworthy
92/100Mission Score
$1.8MRevenue
$1.2MAssets
1Red Flags
5Strengths
Red Flags
Unusually low or zero reported officer compensation for an organization of this size, which might indicate compensation is reported under other categories or a heavy reliance on unpaid leadership.
Strengths
Consistent and significant revenue growth, from $287,943 in 201506 to $1,917,784 in 202406.
Strong asset growth, increasing from $336,616 in 201506 to $1,359,797 in 202406.
Zero reported officer compensation across all 14 filings, suggesting high efficiency in resource allocation.
Healthy financial position with assets significantly exceeding liabilities (e.g., $1,359,797 assets vs. $313,063 liabilities in 202406).
Consistent filing of IRS Form 990s, indicating good transparency and compliance.
Spending Breakdown
How Reading Power Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
7%
Admin Costs
Reasonable — admin costs in check
3%
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 Reading Power Inc
Is Reading Power Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Reading Power Inc (EIN: 202916846) appears trustworthy. Mission Score: 92/100. 1 red flag identified, 5 strengths noted.
Is Reading Power Inc a good charity to donate to?
Reading Power Inc has a Mission Score of 92/100. Revenue: $1.8M. Assets: $1.2M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Reading Power Inc?
The Employer Identification Number (EIN) for Reading Power Inc is 202916846. 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 Reading Power Inc spend its money?
Reading Power Inc allocates 90% to programs, 7% to administration, and 3% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Reading Power Inc's tax-exempt status?
You can verify Reading Power Inc's tax-exempt status using EIN 202916846 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
Reading Power Inc demonstrates a strong and consistent growth trajectory in revenue and assets over the past decade, indicating increasing support for its mission. For the fiscal period ending 202406, the organization reported revenue of $1,917,784 against expenses of $1,597,424, resulting in a healthy surplus. This surplus contributes to the growth in assets, which reached $1,359,797 in 202406, up from $336,616 in 201506. The organization's financial health appears robust, with a positive net asset position and a consistent ability to generate more revenue than expenses in most recent years.
The spending efficiency is commendable, particularly given that the organization consistently reports 0% officer compensation across all available filings. This suggests that resources are primarily directed towards programmatic activities and operational needs rather than executive salaries. While a detailed breakdown of program, administrative, and fundraising expenses isn't provided in the raw data, the absence of officer compensation is a strong indicator of efficient resource allocation. The organization's liabilities have fluctuated but remain manageable relative to its assets, with liabilities of $313,063 against assets of $1,359,797 in 202406.
In terms of transparency, the consistent filing of IRS Form 990s over 14 periods is a positive sign, demonstrating a commitment to public disclosure. The readily available financial data allows for a clear understanding of its financial operations and growth. The lack of reported officer compensation enhances its transparency profile, as it indicates that the organization is not burdened by high executive salaries, which can sometimes be a point of concern for donors. Overall, Reading Power Inc appears to be a financially sound and transparent organization.