Quick charity verification for Salma Khatoon Academy Inc (EIN: 205151027)
Verdict: Salma Khatoon Academy Inc has notable concerns
30/100Mission Score
$69KRevenue
$0Assets
4Red Flags
2Strengths
Red Flags
Complete depletion of assets from over $1.2 million to $0.
Significant and sustained decline in revenue from a peak of $673,466 to $69,219.
Potential operational cessation indicated by $0 assets and low revenue.
Lack of detailed expense breakdown to assess program efficiency.
Strengths
Consistent reporting of 0% officer compensation across all filings.
Historically managed significant assets (over $1.2 million in 2016-2017).
Spending Breakdown
How Salma Khatoon Academy Inc allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
5%
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 Salma Khatoon Academy Inc
Is Salma Khatoon Academy Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Salma Khatoon Academy Inc (EIN: 205151027) has notable concerns. Mission Score: 30/100. 4 red flags identified, 2 strengths noted.
Is Salma Khatoon Academy Inc a good charity to donate to?
Salma Khatoon Academy Inc has a Mission Score of 30/100. Revenue: $69K. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Salma Khatoon Academy Inc?
The Employer Identification Number (EIN) for Salma Khatoon Academy Inc is 205151027. 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 Salma Khatoon Academy Inc spend its money?
Salma Khatoon Academy Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Salma Khatoon Academy Inc's tax-exempt status?
You can verify Salma Khatoon Academy Inc's tax-exempt status using EIN 205151027 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
Salma Khatoon Academy Inc. exhibits a concerning financial trend, with its latest reported revenue of $69,219 significantly lower than its historical average, and a complete depletion of assets to $0 from a peak of over $1.2 million in 2016-2017. This suggests a potential operational wind-down or severe financial distress. The organization consistently reported 0% officer compensation across all available filings, which is a positive indicator of volunteer leadership and potentially lower administrative overhead, though the lack of detailed expense breakdowns prevents a full assessment of spending efficiency.
The dramatic decline in assets and revenue, coupled with the absence of any reported assets in the latest filing, raises serious questions about the organization's current operational capacity and long-term sustainability. While the historical data shows periods of substantial revenue, the recent figures paint a picture of an organization that may no longer be actively operating or has undergone a significant restructuring. Without more recent and detailed financial statements, it's difficult to ascertain the exact nature of its current financial health or spending efficiency beyond the clear decline in resources.
The consistent reporting of 0% officer compensation is a strength in terms of transparency regarding executive pay. However, the overall financial picture, particularly the asset depletion and revenue drop, overshadows this positive aspect. A deeper dive into the specific reasons for the asset decline and the current status of its programs would be necessary for a comprehensive understanding of its financial health and impact.