Quick charity verification for Scherman Foundation Inc (EIN: 136098464)
Verdict: Scherman Foundation Inc appears trustworthy
92/100Mission Score
$22.4MRevenue
$111.7MAssets
2Red Flags
4Strengths
Red Flags
Significant year-to-year revenue volatility, making financial planning potentially challenging.
Consistent reporting of 0% officer compensation, which, while positive, is unusual for an organization of this asset size and could indicate compensation is reported elsewhere or through related entities.
Strengths
Strong and stable asset base, consistently over $100 million, providing long-term financial security.
Minimal liabilities across all reported periods, indicating a healthy balance sheet.
Consistent IRS 990 filing history over a decade, demonstrating commitment to compliance and public disclosure.
Spending Breakdown
How Scherman Foundation Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
8%
Admin Costs
Reasonable — admin costs in check
2%
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 Scherman Foundation Inc
Is Scherman Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Scherman Foundation Inc (EIN: 136098464) appears trustworthy. Mission Score: 92/100. 2 red flags identified, 4 strengths noted.
Is Scherman Foundation Inc a good charity to donate to?
Scherman Foundation Inc has a Mission Score of 92/100. Revenue: $22.4M. Assets: $111.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Scherman Foundation Inc?
The Employer Identification Number (EIN) for Scherman Foundation Inc is 136098464. 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 Scherman Foundation Inc spend its money?
Scherman Foundation Inc allocates 90% to programs, 8% to administration, and 2% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Scherman Foundation Inc's tax-exempt status?
You can verify Scherman Foundation Inc's tax-exempt status using EIN 136098464 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 Scherman Foundation Inc. demonstrates a consistent financial position with substantial assets, averaging over $100 million in recent years, indicating strong long-term stability. While revenue has fluctuated significantly, from a low of $1.3 million in 2022 to a high of $15.3 million in 2021, the organization consistently incurs expenses, typically in the range of $7-9 million annually. This suggests a reliance on its substantial asset base to fund its operations, particularly in years where revenue falls short of expenses, such as in 2023 where revenue was $8.8 million against expenses of $9.6 million.
The foundation's transparency is commendable, particularly given the consistent reporting of 0% officer compensation across all available filings. This indicates that the organization's leadership is either unpaid or compensated through other means not categorized as officer compensation, which is a positive sign for donor confidence. The minimal liabilities reported across all periods further underscore a healthy balance sheet and responsible financial management. The consistent filing of IRS Form 990s over a decade also points to a commitment to regulatory compliance and public disclosure.