Quick charity verification for Risk Red (EIN: 204817165)
Verdict: Risk Red appears trustworthy
85/100Mission Score
$83KRevenue
$77KAssets
2Red Flags
4Strengths
Red Flags
Significant revenue volatility, including $0 reported in 2022.
Lack of detailed breakdown for program vs. administrative expenses in provided data, though 0% officer comp is positive.
Strengths
Consistent 0% officer compensation, indicating high efficiency in resource allocation.
No reported liabilities across all available filings, demonstrating strong financial management.
Significant revenue growth in 2023 ($269,041) compared to previous years, suggesting renewed fundraising success.
Assets have remained relatively stable, indicating a consistent financial base.
Spending Breakdown
How Risk Red allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
0%
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 Risk Red
Is Risk Red a legitimate charity?
Based on AI analysis of IRS 990 filings, Risk Red (EIN: 204817165) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is Risk Red a good charity to donate to?
Risk Red has a Mission Score of 85/100. Revenue: $83K. Assets: $77K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Risk Red?
The Employer Identification Number (EIN) for Risk Red is 204817165. 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 Risk Red spend its money?
Risk Red allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Risk Red's tax-exempt status?
You can verify Risk Red's tax-exempt status using EIN 204817165 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
Risk Red demonstrates a fluctuating financial history, with significant revenue and expense swings over the past decade. The organization reported a strong year in 2023 with $269,041 in revenue and $239,589 in expenses, resulting in a surplus. However, the preceding year, 2022, showed zero revenue and $16,375 in expenses, indicating potential inconsistency in funding or reporting. The organization consistently reports zero liabilities and zero officer compensation, which are positive indicators for financial stability and resource allocation directly to mission-related activities. Their assets have remained relatively stable, hovering around $50,000-$80,000, suggesting a modest but consistent operational capacity.
Spending efficiency appears to be strong, particularly given the consistent reporting of 0% officer compensation across all available filings. This suggests that a very high proportion of expenses are directed towards program delivery and necessary administrative functions, rather than executive salaries. The absence of liabilities further reinforces a fiscally responsible approach. However, the dramatic revenue drop to $0 in 2022 raises questions about the sustainability of their funding model or potential reporting anomalies that could impact long-term planning.
Transparency is generally good, with consistent filings and clear reporting of key financial metrics. The consistent zero officer compensation is a highly transparent practice, indicating that the organization is likely volunteer-led or compensates its leadership through non-salary means. The NTEE code M20 (Public Safety, Disaster Preparedness & Relief) suggests a clear program focus, and the financial data, particularly the high program spending implied by low administrative and fundraising costs (due to 0% officer comp), aligns with a mission-driven approach.