Is Ream Foundation Legit?

Quick charity verification for Ream Foundation (EIN: 205905128)

Verdict: Ream Foundation appears trustworthy

70/100Mission Score

$3.3MRevenue

$6.5MAssets

3Red Flags

3Strengths

Red Flags

Significant revenue volatility, with a sharp decline from $23,397,789 in 2021 to $87,900 in 2023.
Substantial operational deficit in 2023, where expenses ($3,462,990) were nearly 40 times revenue ($87,900).
Decreasing assets from $13,432,709 in 2021 to $9,312,504 in 2023, potentially due to covering operational deficits.

Strengths

Consistent reporting of 0% officer compensation, indicating efficient use of funds for mission-related activities rather than executive salaries.
Historically maintained significant asset levels, providing a buffer for periods of low revenue.
Demonstrated capacity for large-scale fundraising or endowment growth, as evidenced by the $23,397,789 revenue in 2021.

Spending Breakdown

How Ream Foundation allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Ream Foundation

Is Ream Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Ream Foundation (EIN: 205905128) appears trustworthy. Mission Score: 70/100. 3 red flags identified, 3 strengths noted.

Is Ream Foundation a good charity to donate to?

Ream Foundation has a Mission Score of 70/100. Revenue: $3.3M. Assets: $6.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Ream Foundation?

The Employer Identification Number (EIN) for Ream Foundation is 205905128. 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 Ream Foundation spend its money?

Ream Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Ream Foundation's tax-exempt status?

You can verify Ream Foundation's tax-exempt status using EIN 205905128 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 Ream Foundation exhibits inconsistent financial performance over the past decade, with significant fluctuations in revenue and expenses. For instance, revenue peaked at $23,397,789 in 2021 but dropped sharply to $87,900 in 2023, while expenses in 2023 were $3,462,990, far exceeding revenue. This indicates a reliance on prior year assets or other funding sources to cover operational costs in some periods. The organization consistently reports 0% officer compensation, which is a positive indicator of resource allocation directly to the mission rather than executive salaries. However, the substantial deficit in 2023, where expenses were nearly 40 times revenue, raises questions about long-term financial sustainability if such trends continue.

While the lack of officer compensation suggests good intent regarding resource allocation, the dramatic swings in revenue and the significant deficit in the latest filing period (2023) warrant closer scrutiny. The organization's assets have also seen considerable fluctuation, peaking at $13,432,709 in 2021 and decreasing to $9,312,504 by 2023. This volatility makes it challenging to assess consistent financial health and spending efficiency without more detailed program expense breakdowns, which are not provided in the summary data. The NTEE code T22 (Philanthropy, Voluntarism, and Grantmaking Foundations) suggests its primary activity is grantmaking, which typically involves distributing funds to other organizations.

Given the provided data, a detailed breakdown of program, administrative, and fundraising expenses is not available, making a precise assessment of spending efficiency difficult. However, the consistent reporting of zero officer compensation is a strong point for transparency regarding executive pay. The overall financial picture is one of high variability, with periods of substantial revenue and asset growth followed by significant declines and operational deficits, particularly in the most recent year.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.