Is Rum Fund Legit?

Red Flags

Persistent operating deficits (expenses exceeding revenue) in recent years, e.g., $121,092 deficit in 2023.
Significant decline in total assets over the past decade, from $4,361,938 in 2013 to $3,011,544 in 2023.
Inconsistent revenue generation, with large fluctuations year-over-year (e.g., $1,751,533 in 2012 vs. $99,446 in 2011).
Unusually low and consistent reported liabilities of $1 across multiple filing periods.

Spending Breakdown

How Rum Fund allocates its funds across programs, administration, and fundraising.

70%

Program Spending

Below average — room for improvement

20%

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 Rum Fund

Is Rum Fund a legitimate charity?

Based on AI analysis of IRS 990 filings, Rum Fund (EIN: 134022921) shows mixed signals. Mission Score: 55/100. 4 red flags identified, 2 strengths noted.

Is Rum Fund a good charity to donate to?

Rum Fund has a Mission Score of 55/100. Revenue: $590K. Assets: $2.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Rum Fund?

The Employer Identification Number (EIN) for Rum Fund is 134022921. 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 Rum Fund spend its money?

Rum Fund allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Rum Fund's tax-exempt status?

You can verify Rum Fund's tax-exempt status using EIN 134022921 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

Rum Fund exhibits a concerning trend of declining revenue and increasing expenses in recent years, leading to significant operating deficits. For instance, in 2023, revenue was $316,414 against expenses of $437,506, and in 2022, revenue was $196,564 compared to expenses of $589,349. This consistent spending beyond its income is eroding its asset base, which has decreased from $4,361,938 in 2013 to $3,011,544 in 2023. While the organization reports 0% officer compensation across all filings, which suggests efficient use of funds at the executive level, the overall financial sustainability is questionable given the persistent deficits.

The organization's financial health appears to be deteriorating, with assets steadily declining over the past decade. The lack of officer compensation is a positive indicator of transparency regarding executive pay, but it doesn't offset the broader financial challenges. The NTEE code T20 (Philanthropy, Voluntarism, and Grantmaking Foundations) suggests its primary activity is grantmaking, which typically involves distributing funds rather than incurring high program expenses directly. Without a detailed breakdown of expenses (program, administrative, fundraising), it's difficult to fully assess spending efficiency beyond the overall deficit. However, the consistent net losses indicate an unsustainable financial model.

Verdict: Rum Fund shows mixed signals