Quick charity verification for Shippy Foundation (EIN: 204083744)
Verdict: Shippy Foundation appears trustworthy
85/100Mission Score
$6.1MRevenue
$30.0MAssets
3Red Flags
3Strengths
Red Flags
Significant negative revenue in 2023 ($-486,182), raising sustainability concerns.
Highly volatile revenue streams over the past decade.
Unusual consistent reporting of $1 in liabilities across all filings.
Strengths
Consistent reporting of 0% officer compensation, indicating strong financial efficiency at the executive level.
Substantial and stable asset base (over $30 million in most years), providing financial resilience.
Long operational history with 10 filings, suggesting established presence.
Spending Breakdown
How Shippy Foundation 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 Shippy Foundation
Is Shippy Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Shippy Foundation (EIN: 204083744) appears trustworthy. Mission Score: 85/100. 3 red flags identified, 3 strengths noted.
Is Shippy Foundation a good charity to donate to?
Shippy Foundation has a Mission Score of 85/100. Revenue: $6.1M. Assets: $30.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Shippy Foundation?
The Employer Identification Number (EIN) for Shippy Foundation is 204083744. 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 Shippy Foundation spend its money?
Shippy Foundation allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Shippy Foundation's tax-exempt status?
You can verify Shippy Foundation's tax-exempt status using EIN 204083744 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 Shippy Foundation demonstrates a consistent pattern of significant assets, averaging over $30 million, indicating a strong financial base. However, its revenue has been highly volatile, with a notable negative revenue of $-486,182 in 2023, which is a significant concern for sustainability. Despite this, the organization consistently reports $0 in officer compensation across all filings, suggesting a volunteer-led or very lean executive structure, which is a positive indicator for donor confidence regarding administrative overhead. The foundation's liabilities are consistently reported as $1, which is unusual and may warrant further investigation into how liabilities are accounted for, though it suggests minimal debt.
The foundation's spending efficiency appears mixed. While expenses have generally been below revenue in many years, the 2023 filing shows expenses of $2,768,261 against negative revenue, leading to a substantial draw on assets. The NTEE code T20 (Philanthropy, Voluntarism, and Grantmaking Foundations) suggests its primary activity is grantmaking, which typically involves a high program spending ratio. The absence of reported officer compensation is a strong point for transparency and efficiency, as it implies that a very high percentage of funds could theoretically go directly to programs or grants, assuming other administrative costs are also low. However, without a detailed breakdown of expenses (program, administrative, fundraising) in the provided data, a precise assessment of spending efficiency is challenging.
Overall, the Shippy Foundation appears to be a well-endowed organization with a long history of operations. Its transparency regarding executive compensation is excellent. The primary financial concern is the extreme revenue volatility, particularly the negative revenue in 2023, which could impact its long-term ability to sustain its grantmaking activities without further asset depletion. The consistent $1 liability figure is also an unusual reporting practice that could benefit from clarification.