Is Somerled Charitable Foundation Legit?

Quick charity verification for Somerled Charitable Foundation (EIN: 203771709)

Verdict: Somerled Charitable Foundation shows mixed signals

60/100Mission Score

$516KRevenue

$211KAssets

5Red Flags

3Strengths

Red Flags

Highly volatile revenue and expense patterns, indicating financial instability (e.g., $1.2M revenue in 2021 vs. $1.8K in 2022).
Frequent periods where expenses significantly exceed revenue (e.g., 2023: $222,009 expenses vs. $112,174 revenue).
Unusual reporting of negative liabilities in recent years (e.g., $-1,832 in 2023).
Lack of detailed functional expense breakdown to verify program spending efficiency.
Significant fluctuations in asset base over time, suggesting inconsistent financial management or investment strategies.

Strengths

Consistent reporting of 0% officer compensation, suggesting a highly volunteer-driven or lean executive structure.
Ability to generate substantial revenue in certain years (e.g., $1,232,366 in 2021).
Maintained positive assets throughout most of its filing history, indicating some financial reserves.

Spending Breakdown

How Somerled Charitable Foundation allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Somerled Charitable Foundation

Is Somerled Charitable Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Somerled Charitable Foundation (EIN: 203771709) shows mixed signals. Mission Score: 60/100. 5 red flags identified, 3 strengths noted.

Is Somerled Charitable Foundation a good charity to donate to?

Somerled Charitable Foundation has a Mission Score of 60/100. Revenue: $516K. Assets: $211K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Somerled Charitable Foundation?

The Employer Identification Number (EIN) for Somerled Charitable Foundation is 203771709. 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 Somerled Charitable Foundation spend its money?

Somerled Charitable Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Somerled Charitable Foundation's tax-exempt status?

You can verify Somerled Charitable Foundation's tax-exempt status using EIN 203771709 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 Somerled Charitable Foundation exhibits inconsistent financial performance over the past decade. While the organization reported $515,677 in latest revenue and $211,330 in assets, its financial health shows significant fluctuations. For instance, in 2023, expenses ($222,009) significantly outstripped revenue ($112,174), leading to a deficit. This trend of expenses exceeding revenue is also visible in 2022 ($154,558 expenses vs. $1,850 revenue) and 2020 ($881,290 expenses vs. $631,403 revenue). Conversely, 2021 saw a substantial surplus with $1,232,366 in revenue against $351,700 in expenses.

The foundation's spending efficiency is difficult to fully assess without detailed functional expense breakdowns, which are not provided in the summary data. However, the consistent reporting of 0% officer compensation across all filings suggests a lean operational structure regarding executive pay. The organization's assets have also varied widely, from a low of $6,285 in 2013 to a high of $794,946 in 2019, indicating a lack of stable asset growth. The negative liabilities reported in recent years (e.g., $-1,832 in 2023) are unusual and could indicate accounting adjustments or specific financial instruments, warranting further investigation for full transparency.

Overall, the Somerled Charitable Foundation appears to operate with a high degree of volunteer or unpaid leadership, given the zero officer compensation. However, the erratic revenue and expense patterns, coupled with fluctuating asset bases and unusual liability reporting, suggest potential challenges in financial planning and stability. A deeper dive into their program activities and detailed expense allocations would be necessary to fully evaluate their spending efficiency and impact.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.