Quick charity verification for Red Hook Initiative (EIN: 203904662)
Verdict: Red Hook Initiative appears trustworthy
85/100Mission Score
$4.8MRevenue
$4.5MAssets
2Red Flags
3Strengths
Red Flags
Significant operating deficit in the latest fiscal period (202306), with expenses exceeding revenue by over $1.7 million.
Highly fluctuating annual revenues and expenses, indicating potential instability in funding or project cycles.
Strengths
Consistent reporting of 0% officer compensation across all filings, indicating strong commitment to mission-focused spending.
Strong asset base relative to liabilities, demonstrating good long-term financial health (e.g., $4,719,238 assets vs. $881,919 liabilities in 202306).
History of substantial revenue generation, with several years exceeding $4 million and one year reaching nearly $8 million.
Spending Breakdown
How Red Hook Initiative 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 Red Hook Initiative
Is Red Hook Initiative a legitimate charity?
Based on AI analysis of IRS 990 filings, Red Hook Initiative (EIN: 203904662) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 3 strengths noted.
Is Red Hook Initiative a good charity to donate to?
Red Hook Initiative has a Mission Score of 85/100. Revenue: $4.8M. Assets: $4.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Red Hook Initiative?
The Employer Identification Number (EIN) for Red Hook Initiative is 203904662. 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 Hook Initiative spend its money?
Red Hook Initiative allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Red Hook Initiative's tax-exempt status?
You can verify Red Hook Initiative's tax-exempt status using EIN 203904662 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
Red Hook Initiative demonstrates a fluctuating but generally strong financial position, with assets consistently exceeding liabilities across most recent filings. For instance, in 202306, assets were $4,719,238 against liabilities of $881,919, indicating good financial stability. However, the organization experienced a significant deficit in 202306, with expenses of $5,117,406 exceeding revenue of $3,408,492. This contrasts sharply with 202206, where revenue of $7,948,570 far outstripped expenses of $4,622,219, suggesting variability in funding or project cycles. The consistent reporting of 0% officer compensation across all available filings is a notable indicator of transparency and a commitment to directing funds towards its mission rather than executive salaries. While the organization's financial health appears robust in terms of asset-to-liability ratios, the recent deficit warrants closer examination of its operational sustainability and funding strategies.