Quick charity verification for Small Axe Inc (EIN: 134155759)
Verdict: Small Axe Inc shows mixed signals
45/100Mission Score
$49KRevenue
$140KAssets
4Red Flags
3Strengths
Red Flags
Consistent operating deficits in recent years (e.g., $60,700 deficit in 2023, $23,472 deficit in 2022).
Significant decline in assets from $322,483 in 2021 to $238,311 in 2023.
Fluctuating and generally declining revenue trend since 2020's peak of $208,156.
NTEE code Z99, which may indicate a lack of clear programmatic focus or transparency.
Strengths
Zero officer compensation reported across all filings, indicating a volunteer-driven leadership.
No reported liabilities across all filing periods, suggesting a debt-free operation.
Long filing history (13 filings) demonstrates consistent compliance with IRS reporting requirements.
Spending Breakdown
How Small Axe Inc allocates its funds across programs, administration, and fundraising.
75%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
10%
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 Small Axe Inc
Is Small Axe Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Small Axe Inc (EIN: 134155759) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 3 strengths noted.
Is Small Axe Inc a good charity to donate to?
Small Axe Inc has a Mission Score of 45/100. Revenue: $49K. Assets: $140K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Small Axe Inc?
The Employer Identification Number (EIN) for Small Axe Inc is 134155759. 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 Small Axe Inc spend its money?
Small Axe Inc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Small Axe Inc's tax-exempt status?
You can verify Small Axe Inc's tax-exempt status using EIN 134155759 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
Small Axe Inc. exhibits a fluctuating financial history, with recent years showing expenses significantly outpacing revenue. For instance, in 2023, the organization reported revenue of $7,503 against expenses of $68,203, and in 2022, revenue was $25,436 compared to expenses of $48,908. This trend of operating at a deficit raises concerns about long-term sustainability, especially given the decline in assets from a peak of $322,483 in 2021 to $238,311 in 2023. The organization's NTEE code Z99, which is often used for organizations not easily classified, could indicate a broad mission or a lack of specific programmatic focus, potentially impacting donor clarity and transparency regarding its activities.
The organization's spending efficiency is difficult to fully assess without a detailed breakdown of expenses into program, administrative, and fundraising categories, which is not provided in the summary data. However, the consistent reporting of zero officer compensation across all available filings suggests a volunteer-driven leadership, which can be a positive indicator of resource allocation towards mission-related activities rather than executive salaries. Despite this, the overall financial instability, marked by consistent deficits in recent years, suggests potential challenges in effectively utilizing its resources to achieve its mission.
Transparency regarding financial operations is partially met through its consistent 990 filings. However, the lack of detailed expense categorization in the provided data limits a comprehensive analysis of how funds are truly being spent. The absence of liabilities across all reported periods is a positive sign, indicating the organization is not accumulating debt. However, the significant drop in assets from 2021 to 2023, alongside declining revenue, warrants closer scrutiny to understand the underlying causes and the organization's strategy for financial recovery and stability.