Quick charity verification for The Daniel And Karen Berman Foundation (EIN: 203966126)
Verdict: The Daniel And Karen Berman Foundation shows mixed signals
55/100Mission Score
$226KRevenue
$1.3MAssets
3Red Flags
2Strengths
Red Flags
Consistent operating deficits: Expenses significantly exceed revenue in most recent years (e.g., $213,938 expenses vs. $51,428 revenue in 2023).
Declining asset base: Assets have decreased from $1,751,366 in 2020 to $1,297,326 in 2023, indicating a potential draw-down of capital.
Unclear long-term funding strategy: The reliance on sporadic large revenue years (like 2020) and consistent deficits suggests an unsustainable financial model without a clear plan for consistent income.
Strengths
No officer compensation: Officer compensation has consistently been reported as 0%, indicating efficient use of funds in this area.
Substantial asset base: The foundation maintains significant assets ($1,293,267 in the latest period), providing a buffer despite operating deficits.
Spending Breakdown
How The Daniel And Karen Berman 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 The Daniel And Karen Berman Foundation
Is The Daniel And Karen Berman Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, The Daniel And Karen Berman Foundation (EIN: 203966126) shows mixed signals. Mission Score: 55/100. 3 red flags identified, 2 strengths noted.
Is The Daniel And Karen Berman Foundation a good charity to donate to?
The Daniel And Karen Berman Foundation has a Mission Score of 55/100. Revenue: $226K. Assets: $1.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Daniel And Karen Berman Foundation?
The Employer Identification Number (EIN) for The Daniel And Karen Berman Foundation is 203966126. 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 The Daniel And Karen Berman Foundation spend its money?
The Daniel And Karen Berman Foundation allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Daniel And Karen Berman Foundation's tax-exempt status?
You can verify The Daniel And Karen Berman Foundation's tax-exempt status using EIN 203966126 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 Daniel And Karen Berman Foundation exhibits a concerning trend of consistent operating deficits in recent years, with expenses significantly outpacing revenue. For instance, in 2023, the organization reported revenue of $51,428 against expenses of $213,938, and similar patterns are observed in 2022 and 2021. While the foundation maintains substantial assets, totaling $1,293,267 in the latest period, these deficits suggest a reliance on drawing down existing capital or inconsistent large donations, as seen in 2020 with revenue of $923,577. The lack of reported officer compensation indicates good stewardship in that area, but the overall financial sustainability is questionable given the recurring negative net income.
Spending efficiency is difficult to fully assess without a detailed functional expense breakdown, which is not provided in the summary data. However, the consistent and significant gap between revenue and expenses raises questions about the long-term viability of its current operational model. The foundation's transparency appears adequate in terms of filing its IRS 990s, with 10 filings available, but the financial health indicators suggest a need for closer examination of its funding strategy and expense management to ensure its mission can be sustained effectively.