Is Sunlight Foundation Legit?

Red Flags

Significant and consistent operational deficits (e.g., $840,704 revenue vs. $1,495,491 expenses in 2019).
Extreme revenue volatility over the past decade.
Substantial decline in total assets from $7.4 million in 2013 to $0.9 million in 2019.
Unusually low (0%) reported officer compensation for an organization of this scale, which may warrant further investigation into compensation structures.

Spending Breakdown

How Sunlight Foundation 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 Sunlight Foundation

Is Sunlight Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Sunlight Foundation (EIN: 203903427) shows mixed signals. Mission Score: 55/100. 4 red flags identified, 2 strengths noted.

Is Sunlight Foundation a good charity to donate to?

Sunlight Foundation has a Mission Score of 55/100. Revenue: $841K. Assets: $968K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Sunlight Foundation?

The Employer Identification Number (EIN) for Sunlight Foundation is 203903427. 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 Sunlight Foundation spend its money?

Sunlight Foundation allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

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

You can verify Sunlight Foundation's tax-exempt status using EIN 203903427 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 Sunlight Foundation exhibits significant financial volatility, with revenues fluctuating wildly from a high of $8,942,875 in 2013 to a low of $327,646 in 2016, and most recently $840,704 in 2019. This inconsistency makes long-term financial planning and stability challenging. The organization has frequently operated at a deficit, with expenses exceeding revenue in multiple years, notably in 2019 where expenses were $1,495,491 against revenues of $840,704, indicating a substantial draw on reserves or prior year surpluses. While the organization reports 0% officer compensation across all available filings, which is a positive for resource allocation, the overall financial health is concerning due to the sustained periods of spending exceeding income.

The organization's asset base has also seen a considerable decline from a peak of $7,469,706 in 2013 to $968,101 in 2019, suggesting a significant reduction in operational capacity or a strategic shift. The lack of detailed expense breakdowns (program, admin, fundraising) in the provided data limits a precise assessment of spending efficiency. However, the consistent operational deficits raise questions about the sustainability of their current financial model. The 0% officer compensation is a strong indicator of transparency regarding executive pay, but the broader financial picture suggests a need for greater stability and clearer financial strategy.

Verdict: Sunlight Foundation shows mixed signals