Is Somerset Economic Development…

Quick charity verification for Somerset Economic Development Corporation (EIN: 10535534)

Spending Breakdown

How Somerset Economic Development Corporation 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 Somerset Economic Development Corporation

Is Somerset Economic Development Corporation a legitimate charity?

Based on AI analysis of IRS 990 filings, Somerset Economic Development Corporation (EIN: 10535534) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.

Is Somerset Economic Development Corporation a good charity to donate to?

Somerset Economic Development Corporation has a Mission Score of 85/100. Revenue: $440K. Assets: $6.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Somerset Economic Development Corporation?

The Employer Identification Number (EIN) for Somerset Economic Development Corporation is 10535534. 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 Somerset Economic Development Corporation spend its money?

Somerset Economic Development Corporation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Somerset Economic Development Corporation's tax-exempt status?

You can verify Somerset Economic Development Corporation's tax-exempt status using EIN 10535534 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

Somerset Economic Development Corporation exhibits fluctuating financial performance over the past decade, with significant swings in revenue and expenses. For instance, revenue surged to $1,217,524 in 2022 before dropping to $551,464 in 2023, while expenses in 2022 were remarkably low at $130,299 compared to $556,851 in 2023. This volatility makes consistent financial health assessment challenging. The organization's assets have shown substantial growth, from $458,776 in 2014 to $3,234,142 in 2023, indicating successful asset accumulation, though liabilities have also increased proportionally.

Spending efficiency is difficult to fully ascertain without a detailed breakdown of program, administrative, and fundraising expenses in the provided data. However, the absence of reported officer compensation across all filings suggests a lean operational structure at the executive level, which is a positive indicator for donor confidence. The organization's NTEE code W20 (Economic Development) aligns with its name, suggesting a clear programmatic focus.

Transparency appears to be strong regarding executive compensation, with 0% reported for officers across all available filings. The consistent filing of IRS Form 990s over 14 periods demonstrates a commitment to regulatory compliance and public disclosure. However, a more granular breakdown of expenses would further enhance transparency and allow for a more precise evaluation of spending efficiency.

Is Somerset Economic Development Corporation Legit?

Verdict: Somerset Economic Development Corporation appears trustworthy

Red Flags

Strengths