Quick charity verification for Richard W Hotes Foundation (EIN: 10760054)
Verdict: Richard W Hotes Foundation appears trustworthy
70/100Mission Score
$1.6MRevenue
$9.1MAssets
3Red Flags
3Strengths
Red Flags
Consistent deficit spending in recent years (e.g., 2023 expenses $2.36M vs. revenue $1.50M)
Significant decline in total assets over the past decade (from $21.9M in 2012 to $9.9M in 2023)
NTEE code P99 ('Unknown') makes specific mission categorization unclear.
Strengths
Consistent filing of IRS 990s demonstrates transparency.
0% officer compensation reported across all filings, indicating low executive overhead.
Substantial asset base, despite decline, still provides significant financial capacity ($9.9M in 2023).
Spending Breakdown
How Richard W Hotes 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 Richard W Hotes Foundation
Is Richard W Hotes Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Richard W Hotes Foundation (EIN: 10760054) appears trustworthy. Mission Score: 70/100. 3 red flags identified, 3 strengths noted.
Is Richard W Hotes Foundation a good charity to donate to?
Richard W Hotes Foundation has a Mission Score of 70/100. Revenue: $1.6M. Assets: $9.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Richard W Hotes Foundation?
The Employer Identification Number (EIN) for Richard W Hotes Foundation is 10760054. 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 Richard W Hotes Foundation spend its money?
Richard W Hotes Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Richard W Hotes Foundation's tax-exempt status?
You can verify Richard W Hotes Foundation's tax-exempt status using EIN 10760054 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 Richard W Hotes Foundation demonstrates a fluctuating financial profile, with recent years showing expenses exceeding revenue. For instance, in 2023, expenses were $2,358,948 against revenues of $1,497,882, and a similar trend was observed in 2022. This consistent deficit spending, while potentially drawing from reserves, warrants closer examination to ensure long-term sustainability. The organization's assets have also shown a declining trend from a high of $21,917,696 in 2012 to $9,940,811 in 2023, which aligns with the pattern of expenses outstripping revenue.
Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses from the provided data, it's challenging to fully assess. However, the consistent reporting of 0% officer compensation across all filings indicates a commitment to minimizing executive overhead, which is a positive sign for donor confidence. The foundation's transparency is generally good given the consistent filing of IRS 990s, but a more granular view of expense categories would enhance understanding of its operational efficiency and program impact. The significant decrease in assets over the past decade, from over $21 million to under $10 million, suggests a substantial draw-down of capital, which could be a concern if not managed strategically for mission-related activities.