Is Rotaract Club Of Birmingham Legit? —…

Spending Breakdown

How Rotaract Club Of Birmingham allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Rotaract Club Of Birmingham

Is Rotaract Club Of Birmingham a legitimate charity?

Based on AI analysis of IRS 990 filings, Rotaract Club Of Birmingham (EIN: 205444646) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.

Is Rotaract Club Of Birmingham a good charity to donate to?

Rotaract Club Of Birmingham has a Mission Score of 85/100. Revenue: $75K. Assets: $59K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Rotaract Club Of Birmingham?

The Employer Identification Number (EIN) for Rotaract Club Of Birmingham is 205444646. 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 Rotaract Club Of Birmingham spend its money?

Rotaract Club Of Birmingham allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Rotaract Club Of Birmingham's tax-exempt status?

You can verify Rotaract Club Of Birmingham's tax-exempt status using EIN 205444646 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 Rotaract Club Of Birmingham demonstrates a consistent operational history with generally stable revenue streams, averaging around $80,000-$100,000 annually in recent years. While the organization's assets have shown growth, reaching $172,001 in 2023, it has also incurred liabilities, peaking at $87,312 in the same period. The organization consistently reports 0% officer compensation, indicating a volunteer-driven leadership structure, which is a positive sign for donor confidence and efficient use of funds. However, the 2023 filing shows expenses ($103,182) exceeding revenue ($83,737), suggesting a deficit for that period, which warrants monitoring.

Spending efficiency appears to be a strength, particularly given the absence of paid executive compensation. This allows a greater proportion of funds to be directed towards programs and operational costs. The consistent reporting of 0% officer compensation across all available filings highlights a commitment to minimizing administrative overhead related to leadership salaries. The organization's financial health, while generally stable, shows some fluctuations, such as the deficit in 2023 and the significant increase in liabilities. 

Transparency is high regarding executive compensation, as it consistently reports no paid officers. The availability of 13 years of IRS 990 filings further enhances transparency, allowing for a detailed historical review of its financial activities. However, without a detailed breakdown of program vs. administrative vs. fundraising expenses in the provided data, a precise assessment of spending efficiency beyond executive compensation is limited.

Is Rotaract Club Of Birmingham Legit?

Verdict: Rotaract Club Of Birmingham appears trustworthy

Red Flags

Strengths