Is Rockingham Economic Development Corporation Legit?
Quick charity verification for Rockingham Economic Development Corporation (EIN: 20474973)
Verdict: Rockingham Economic Development Corporation appears trustworthy
90/100Mission Score
$1.8MRevenue
$18.6MAssets
0Red Flags
5Strengths
No red flags identified.
Strengths
Consistent asset growth, from $7.35M in 2015 to $18.08M in 2024.
Consistently reports 0% officer compensation, indicating high efficiency in directing funds.
Operates with a consistent financial surplus, with revenues generally exceeding expenses.
Strong financial stability with substantial assets relative to annual expenses.
Regular and consistent IRS 990 filing history, demonstrating transparency.
Spending Breakdown
How Rockingham Economic Development Corporation 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 Rockingham Economic Development Corporation
Is Rockingham Economic Development Corporation a legitimate charity?
Based on AI analysis of IRS 990 filings, Rockingham Economic Development Corporation (EIN: 20474973) appears trustworthy. Mission Score: 90/100. 0 red flags identified, 5 strengths noted.
Is Rockingham Economic Development Corporation a good charity to donate to?
Rockingham Economic Development Corporation has a Mission Score of 90/100. Revenue: $1.8M. Assets: $18.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Rockingham Economic Development Corporation?
The Employer Identification Number (EIN) for Rockingham Economic Development Corporation is 20474973. 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 Rockingham Economic Development Corporation spend its money?
Rockingham Economic Development Corporation allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Rockingham Economic Development Corporation's tax-exempt status?
You can verify Rockingham Economic Development Corporation's tax-exempt status using EIN 20474973 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
Rockingham Economic Development Corporation (REDC) demonstrates a generally healthy financial position with consistent asset growth over the past decade, from $7.35 million in 2015 to over $18 million in 2024. The organization consistently operates with a surplus, as evidenced by revenues exceeding expenses in most recent periods, such as $2,038,192 in revenue against $1,716,537 in expenses in 2024. This indicates sound financial management and an ability to build reserves. Their transparency is commendable given the consistent filing of IRS Form 990s, and the reported 0% officer compensation suggests a strong commitment to directing funds towards the organization's mission rather than executive salaries.
Spending efficiency appears strong, with a significant portion of expenses likely directed towards program services, although specific program spending ratios are not detailed in the provided data. The consistent positive net income, even with fluctuating revenues (e.g., a peak of $4.32 million in 2022 dropping to $2.04 million in 2024), suggests adaptability and prudent expense management. The organization's financial health is robust, supported by substantial assets relative to its annual expenses, providing a solid foundation for its economic development activities.
Overall, REDC appears to be a well-managed and financially stable organization. The absence of officer compensation is a notable positive indicator of its commitment to mission-driven spending. While more detailed expense breakdowns would further enhance transparency, the available data points to a responsible and efficient use of resources.