Quick charity verification for Simple Changes Inc (EIN: 202045973)
Verdict: Simple Changes Inc appears trustworthy
80/100Mission Score
$515KRevenue
$314KAssets
2Red Flags
4Strengths
Red Flags
Consistent operating deficits in recent years (e.g., $16,427 in 2023, $41,818 in 2022) indicate expenses exceeding revenue.
Liabilities have increased significantly from $6,450 in 2014 to $91,096 in 2023, which warrants monitoring.
Strengths
No reported officer compensation across all filings, suggesting high dedication of resources to mission.
Significant growth in assets from $25,697 in 2014 to $313,718 currently, indicating increasing capacity.
Substantial revenue growth over the past decade, from $165,058 in 2014 to over $500,000 currently.
Consistent filing of IRS 990s for 13 periods demonstrates transparency and compliance.
Spending Breakdown
How Simple Changes Inc allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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 Simple Changes Inc
Is Simple Changes Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Simple Changes Inc (EIN: 202045973) appears trustworthy. Mission Score: 80/100. 2 red flags identified, 4 strengths noted.
Is Simple Changes Inc a good charity to donate to?
Simple Changes Inc has a Mission Score of 80/100. Revenue: $515K. Assets: $314K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Simple Changes Inc?
The Employer Identification Number (EIN) for Simple Changes Inc is 202045973. 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 Simple Changes Inc spend its money?
Simple Changes Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Simple Changes Inc's tax-exempt status?
You can verify Simple Changes Inc's tax-exempt status using EIN 202045973 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
Simple Changes Inc. demonstrates a consistent commitment to its mission, as evidenced by its program spending. While the organization has experienced periods of operating deficits, such as in 2023 ($483,115 revenue vs. $499,542 expenses) and 2022 ($408,786 revenue vs. $450,604 expenses), it has also shown growth in revenue and assets over the past decade. The latest reported revenue of $514,965 and assets of $313,718 indicate a growing scale of operations. The absence of reported officer compensation across all available filings suggests a strong volunteer-driven leadership or that compensation falls below reporting thresholds, which can be a positive indicator of resource allocation directly to programs.
The organization's financial health shows a pattern of growth, but also some volatility in net income. Assets have steadily increased from $25,697 in 2014 to $313,718 currently, indicating a building capacity. However, the recent operating deficits suggest a need for careful financial management to ensure long-term sustainability. The lack of reported officer compensation enhances transparency regarding how funds are utilized, directing more resources towards its NTEE P80 mission (Youth Development Programs).
Overall, Simple Changes Inc. appears to be a program-focused organization with a growing financial base, though it faces challenges in consistently matching expenses with revenue. Its transparency regarding executive compensation is commendable, and its asset growth provides a buffer. Continued monitoring of its operating margins will be crucial for its sustained impact.