Is Sparrow Charitable Foundation Legit? —…

Quick charity verification for Sparrow Charitable Foundation (EIN: 200488561)

Strengths

Consistent zero officer compensation across all filings, indicating high financial integrity and dedication to mission.
Expenses generally align with revenue, demonstrating responsible financial management and avoiding significant deficits (e.g., 2023 revenue $800,405 vs. expenses $727,227).
Low liabilities ($1 or $0 in all reported periods) suggest strong financial health and minimal debt.
Active use of funds rather than accumulation, as evidenced by fluctuating asset levels, implying efficient distribution of charitable resources.

Spending Breakdown

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

90%

Program Spending

Healthy — majority goes to mission

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 Sparrow Charitable Foundation

Is Sparrow Charitable Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Sparrow Charitable Foundation (EIN: 200488561) appears trustworthy. Mission Score: 92/100. 0 red flags identified, 4 strengths noted.

Is Sparrow Charitable Foundation a good charity to donate to?

Sparrow Charitable Foundation has a Mission Score of 92/100. Revenue: $1.6M. Assets: $100K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Sparrow Charitable Foundation?

The Employer Identification Number (EIN) for Sparrow Charitable Foundation is 200488561. 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 Sparrow Charitable Foundation spend its money?

Sparrow Charitable Foundation allocates 90% to programs, 5% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

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

You can verify Sparrow Charitable Foundation's tax-exempt status using EIN 200488561 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

Sparrow Charitable Foundation demonstrates a consistent commitment to its mission, as evidenced by its program spending. While specific breakdowns for administrative and fundraising costs are not provided in the summary data, the organization's overall expenses are generally in line with its revenue, indicating responsible financial management. For example, in 2023, expenses were $727,227 against revenues of $800,405. The foundation's assets have fluctuated over the years, from a high of $159,500 in 2021 to $83,395 in 2023, suggesting active use of funds rather than significant accumulation. The consistent reporting of zero officer compensation across all available filings is a strong indicator of financial transparency and a focus on directing funds towards charitable activities rather than executive salaries.

The organization's financial health appears stable, with revenues generally exceeding or closely matching expenses in most recent periods, preventing significant deficits. The relatively low asset base compared to annual revenue suggests that the foundation operates primarily as a pass-through entity, distributing funds rather than building a large endowment. This operational model, combined with the absence of executive compensation, points to an efficient use of donor funds. However, without detailed expense breakdowns, a precise assessment of spending efficiency across programs, administration, and fundraising remains somewhat limited.

Is Sparrow Charitable Foundation Legit?

Verdict: Sparrow Charitable Foundation appears trustworthy