Quick charity verification for Red Clay Education Foundation (EIN: 203453422)
Verdict: Red Clay Education Foundation appears trustworthy
85/100Mission Score
$123KRevenue
$416KAssets
1Red Flags
4Strengths
Red Flags
Frequent periods where expenses exceed revenue, potentially impacting long-term reserves if not managed carefully (e.g., 202306: Expenses $33,785 vs. Revenue $18,818).
Strengths
Consistent 0% officer compensation, ensuring funds are directed to mission.
Steady growth in assets over time, from $255,035 in 202006 to $360,075 in 202406.
Strong transparency with 14 IRS 990 filings.
Positive net income in the latest filing period (202406: Revenue $51,745, Expenses $45,988).
Spending Breakdown
How Red Clay Education 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
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 Red Clay Education Foundation
Is Red Clay Education Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Red Clay Education Foundation (EIN: 203453422) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Red Clay Education Foundation a good charity to donate to?
Red Clay Education Foundation has a Mission Score of 85/100. Revenue: $123K. Assets: $416K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Red Clay Education Foundation?
The Employer Identification Number (EIN) for Red Clay Education Foundation is 203453422. 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 Red Clay Education Foundation spend its money?
Red Clay Education Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Red Clay Education Foundation's tax-exempt status?
You can verify Red Clay Education Foundation's tax-exempt status using EIN 203453422 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 Red Clay Education Foundation demonstrates a consistent commitment to its mission, as evidenced by its program-focused spending. In the 202406 period, the organization reported $51,745 in revenue against $45,988 in expenses, indicating sound financial management for the period. While the organization has experienced fluctuations in revenue and expenses over the years, such as a significant expense in 201806 ($86,501) compared to revenue ($29,224), its asset base has shown a general upward trend, reaching $360,075 in 202406 from $255,035 in 202006. This growth in assets suggests a stable financial foundation.
The foundation's transparency is strong, with a clear record of zero officer compensation across all reported periods. This indicates that resources are primarily directed towards the organization's educational programs rather than administrative overhead for top executives. The consistent filing of IRS Form 990s over 14 periods further reinforces its commitment to public accountability. However, the organization has frequently operated with expenses exceeding revenue in several periods (e.g., 202306, 202106, 201806), which, while not uncommon for nonprofits, warrants monitoring to ensure long-term sustainability. The latest period shows a positive net income, which is a good sign.