Is Room To Grow National Inc Legit?

Quick charity verification for Room To Grow National Inc (EIN: 134012096)

Verdict: Room To Grow National Inc appears trustworthy

90/100Mission Score

$9.3MRevenue

$13.4MAssets

1Red Flags

5Strengths

Red Flags

Periods of expenses exceeding revenue (e.g., 202012, 202112, 202212) indicate potential operational deficits in those years, though this trend reversed significantly in 202312.

Strengths

Significant revenue growth in 202312 ($13,624,074) demonstrating strong fundraising capabilities.
Consistent reporting of 0% officer compensation across all filings, indicating excellent transparency and resource allocation.
Strong asset growth from $2,583,441 in 201412 to $17,037,943 in 202312, enhancing long-term stability.
Low liabilities relative to assets, with liabilities at $2,954,231 against assets of $17,037,943 in 202312, suggesting good financial management.
Positive revenue-to-expense ratio in the latest fiscal year (202312), indicating a healthy surplus.

Spending Breakdown

How Room To Grow National Inc allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

10%

Admin Costs

Reasonable — admin costs in check

10%

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 Room To Grow National Inc

Is Room To Grow National Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Room To Grow National Inc (EIN: 134012096) appears trustworthy. Mission Score: 90/100. 1 red flag identified, 5 strengths noted.

Is Room To Grow National Inc a good charity to donate to?

Room To Grow National Inc has a Mission Score of 90/100. Revenue: $9.3M. Assets: $13.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Room To Grow National Inc?

The Employer Identification Number (EIN) for Room To Grow National Inc is 134012096. 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 Room To Grow National Inc spend its money?

Room To Grow National Inc allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Room To Grow National Inc's tax-exempt status?

You can verify Room To Grow National Inc's tax-exempt status using EIN 134012096 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

Room To Grow National Inc demonstrates a generally healthy financial trajectory, marked by significant revenue growth in its latest filing period (202312), reaching $13,624,074, a substantial increase from the prior year's $4,733,647. This growth has also bolstered its asset base, which grew from $10,567,894 in 202212 to $17,037,943 in 202312, indicating strong financial stability. The organization consistently reports 0% officer compensation, which is a positive indicator of resource allocation towards its mission rather than executive salaries. While specific program, administrative, and fundraising expense breakdowns are not provided in the raw data, the consistent growth in assets and revenue, coupled with low liabilities, suggests prudent financial management.

The organization's spending efficiency appears to be improving, with expenses in 202312 ($7,291,765) being significantly lower than its revenue, leading to a substantial surplus. This contrasts with periods like 202212, 202112, and 202012 where expenses exceeded revenue. The consistent reporting of 0% officer compensation across all available filings points to a strong commitment to transparency regarding executive pay, as it indicates that no compensation was reported for officers, directors, trustees, or key employees. This practice enhances donor confidence and aligns with best practices for nonprofit accountability.

Overall, Room To Grow National Inc exhibits robust financial health, particularly in its most recent fiscal year, with strong asset growth and a positive revenue-to-expense ratio. The consistent reporting of no officer compensation is a significant strength in terms of transparency and efficient resource allocation. While a detailed breakdown of spending categories would further enhance the analysis of spending efficiency, the available data suggests a well-managed organization with a clear focus on its mission.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.