Quick charity verification for Seven Ray Institute Inc (EIN: 222701705)
Verdict: Seven Ray Institute Inc shows mixed signals
40/100Mission Score
$69KRevenue
$29KAssets
5Red Flags
1Strengths
Red Flags
Consistent net losses: Expenses have exceeded revenue in multiple years (e.g., 2023: $126,936 expenses vs. $97,387 revenue; 2022: $100,271 expenses vs. $79,661 revenue).
Zero program expenses reported: Despite reporting other expenses, no program service expenses are listed in recent filings, suggesting a lack of direct charitable activity.
Declining net assets: Net assets have steadily decreased from $143,165 in 2021 to $93,006 in 2023, indicating financial instability.
Unexplained 'other expenses': A significant portion of expenses is categorized as 'other expenses' without further detail, making it difficult to assess their nature.
No compensation reported for key personnel: Reporting $0 for all compensation, including officers and directors, is highly unusual for an active organization with expenses.
Strengths
Long operational history: The organization has been filing tax returns since at least 2016, indicating a sustained presence.
Spending Breakdown
How Seven Ray Institute Inc allocates its funds across programs, administration, and fundraising.
0%
Program Spending
Concerning — less than half to programs
100%
Admin Costs
High — over 25% on administration
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 Seven Ray Institute Inc
Is Seven Ray Institute Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Seven Ray Institute Inc (EIN: 222701705) shows mixed signals. Mission Score: 40/100. 5 red flags identified, 1 strength noted.
Is Seven Ray Institute Inc a good charity to donate to?
Seven Ray Institute Inc has a Mission Score of 40/100. Revenue: $69K. Assets: $29K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Seven Ray Institute Inc?
The Employer Identification Number (EIN) for Seven Ray Institute Inc is 222701705. 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 Seven Ray Institute Inc spend its money?
Seven Ray Institute Inc allocates 0% to programs, 100% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Seven Ray Institute Inc's tax-exempt status?
You can verify Seven Ray Institute Inc's tax-exempt status using EIN 222701705 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
Seven Ray Institute Inc is a unknown nonprofit based in Phoenix, Arizona, with reported revenue of $69K and assets of $29K. Our AI analysis assigns a Mission Score of 40/100 (Fair). - No program service accomplishments or expenses are reported in recent filings.
- The organization consistently reports zero compensation for all officers, directors, trustees, and key employees, which is unusual for an organization with reported expenses.
- Financial statements show a consistent pattern of expenses exceeding revenue, leading to declining net assets. Executive compensation is reported as $0 across all available filings, which, while seemingly positive, raises questions given the organization's operational expenses and lack of detailed program reporting. Revenue has remained stable -5% across 13 filing periods.