Quick charity verification for Reed Foundation Inc (EIN: 131990017)
Verdict: Reed Foundation Inc appears trustworthy
75/100Mission Score
$19.9MRevenue
$13.9MAssets
2Red Flags
3Strengths
Red Flags
Highly volatile revenue, including negative revenue in some years (e.g., -$1,369,708 in 2020), which can indicate unpredictable funding or significant investment losses.
Expenses frequently exceed revenue in recent years (e.g., 2023: Revenue $665,985, Expenses $1,002,677), suggesting reliance on prior reserves or asset drawdowns.
Strengths
Consistent 0% officer compensation, indicating highly efficient use of funds at the executive level.
Minimal liabilities ($1 in recent years), demonstrating strong financial control over debt.
Substantial asset base ($13,941,316 latest) provides a buffer against revenue volatility.
Spending Breakdown
How Reed Foundation 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 Reed Foundation Inc
Is Reed Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Reed Foundation Inc (EIN: 131990017) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is Reed Foundation Inc a good charity to donate to?
Reed Foundation Inc has a Mission Score of 75/100. Revenue: $19.9M. Assets: $13.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Reed Foundation Inc?
The Employer Identification Number (EIN) for Reed Foundation Inc is 131990017. 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 Reed Foundation Inc spend its money?
Reed Foundation Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Reed Foundation Inc's tax-exempt status?
You can verify Reed Foundation Inc's tax-exempt status using EIN 131990017 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 Reed Foundation Inc. exhibits a mixed financial picture based on its IRS 990 filings. While the organization consistently reports minimal liabilities ($1 in recent years), indicating good financial control over debt, its revenue has been highly volatile, including negative revenue in 2019 and 2020. For example, in 2020, revenue was -1,369,708, while expenses were $1,185,292. This volatility makes long-term financial planning and sustainability challenging to assess. The organization's assets have fluctuated, peaking around $17-18 million in the mid-2010s and currently standing at $13,941,316, suggesting a stable but not consistently growing asset base.
Spending efficiency is difficult to fully ascertain without a detailed breakdown of program, administrative, and fundraising expenses, which are not provided in the summary data. However, the consistent reporting of 0% officer compensation across all available filings is a strong indicator of efficient use of funds at the executive level and suggests a volunteer-led or very lean leadership structure. This practice enhances donor confidence by ensuring that contributions are not being diverted to high executive salaries. The organization's transparency is good in terms of public filing availability, but the lack of detailed expense categories limits a deeper analysis of how funds are allocated across its mission areas.
Overall, the Reed Foundation appears to be a fiscally conservative organization regarding executive pay and debt. However, the significant revenue fluctuations and the absence of detailed expense breakdowns in the provided data make it challenging to give a definitive assessment of its spending efficiency and program impact. Donors might seek more granular information on how the $1,002,677 in expenses (2023) or $1,038,314 (2022) were distributed.