Is Royal Corporation Legit?

Quick charity verification for Royal Corporation (EIN: 205594193)

Verdict: Royal Corporation appears trustworthy

70/100Mission Score

$591KRevenue

$148KAssets

3Red Flags

3Strengths

Red Flags

Significant deficit in 2023 ($760,852 revenue vs. $1,063,300 expenses)
Substantial increase in liabilities in 2023 ($194,800)
Declining asset base from $293,884 in 2022 to $139,333 in 2023

Strengths

Consistent 0% officer compensation across all filings
Regular filing of IRS Form 990s demonstrating transparency
History of strong revenue generation in previous years (e.g., $962,937 in 2022)

Spending Breakdown

How Royal Corporation 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 Royal Corporation

Is Royal Corporation a legitimate charity?

Based on AI analysis of IRS 990 filings, Royal Corporation (EIN: 205594193) appears trustworthy. Mission Score: 70/100. 3 red flags identified, 3 strengths noted.

Is Royal Corporation a good charity to donate to?

Royal Corporation has a Mission Score of 70/100. Revenue: $591K. Assets: $148K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Royal Corporation?

The Employer Identification Number (EIN) for Royal Corporation is 205594193. 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 Royal Corporation spend its money?

Royal Corporation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Royal Corporation's tax-exempt status?

You can verify Royal Corporation's tax-exempt status using EIN 205594193 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

Royal Corporation demonstrates a fluctuating financial health over its filing history. While the organization has experienced periods of strong revenue growth, such as from $263,497 in 2015 to $962,937 in 2022, it has also shown significant deficits, most notably in 2023 where expenses ($1,063,300) substantially exceeded revenue ($760,852). This resulted in a net loss of over $300,000 for that period, impacting its asset base which decreased from $293,884 in 2022 to $139,333 in 2023, while liabilities increased significantly to $194,800. The organization's NTEE code X20, 'Religious', suggests a focus on religious activities, which typically have varying operational structures.

The spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which are not provided in the summary data. 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 funds being directed towards the mission. The organization's assets have also shown considerable variability, peaking at $304,000 in 2019 before declining. The recent increase in liabilities in 2023 is a concern that warrants further investigation into the nature of these obligations.

In terms of transparency, the consistent filing of IRS Form 990s over eight periods is a strong indicator of compliance and a willingness to disclose financial information. The absence of officer compensation is a transparent practice that can build donor trust. However, without more granular expense data, a complete picture of how funds are allocated between programs, administration, and fundraising remains elusive, limiting a full assessment of spending efficiency.

View Full Transparency Report →

Disclaimer

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