Quick charity verification for Salem Christmas Fund Inc (EIN: 20351409)
Verdict: Salem Christmas Fund Inc appears trustworthy
85/100Mission Score
$52KRevenue
$131KAssets
2Red Flags
3Strengths
Red Flags
Significant deficit in the latest fiscal period (202408), with expenses ($126,747) far exceeding revenue ($50,690).
Substantial decrease in assets from $206,473 to $131,175 in the latest period, indicating reliance on reserves.
Strengths
Consistent reporting of 0% officer compensation, indicating a volunteer-led organization and efficient use of funds.
Maintains zero liabilities across all reported periods, demonstrating sound financial management.
Consistent filing of IRS Form 990s, indicating good transparency practices.
Spending Breakdown
How Salem Christmas Fund Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
0%
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 Salem Christmas Fund Inc
Is Salem Christmas Fund Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Salem Christmas Fund Inc (EIN: 20351409) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 3 strengths noted.
Is Salem Christmas Fund Inc a good charity to donate to?
Salem Christmas Fund Inc has a Mission Score of 85/100. Revenue: $52K. Assets: $131K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Salem Christmas Fund Inc?
The Employer Identification Number (EIN) for Salem Christmas Fund Inc is 20351409. 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 Salem Christmas Fund Inc spend its money?
Salem Christmas Fund Inc allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Salem Christmas Fund Inc's tax-exempt status?
You can verify Salem Christmas Fund Inc's tax-exempt status using EIN 20351409 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
Salem Christmas Fund Inc demonstrates a fluctuating financial performance over the past few years. While the organization consistently reports zero liabilities and no officer compensation, indicating good financial hygiene and a volunteer-driven model, its revenue and expense figures show significant variability. For instance, in the 202408 period, expenses ($126,747) significantly outstripped revenue ($50,690), leading to a substantial draw-down on assets from $206,473 in 202308 to $131,175 in 202408. This suggests that the organization may have spent down reserves to meet program needs, which is not inherently negative for a charity, but warrants monitoring for sustainability.
The organization's spending efficiency is difficult to precisely determine without a detailed breakdown of expenses into program, administrative, and fundraising categories, which is not provided in the summary data. However, the absence of officer compensation is a strong indicator of low administrative overhead in terms of salaries. The significant expense in 202408 relative to revenue suggests a high level of program activity or a one-time expenditure. The organization's transparency appears strong given its consistent filing of IRS Form 990s and the clear reporting of assets, liabilities, and revenue/expense figures.
Overall, Salem Christmas Fund Inc appears to be a well-intentioned, volunteer-led organization focused on its mission, as evidenced by the lack of executive compensation. However, the recent financial period (202408) shows a substantial deficit, which, if it becomes a trend, could impact its long-term financial health. The organization's ability to manage these fluctuations and maintain its asset base will be key to its continued success.