Quick charity verification for The Difference Principle Foundation (EIN: 202379220)
Verdict: The Difference Principle Foundation shows mixed signals
65/100Mission Score
$13KRevenue
$78KAssets
3Red Flags
3Strengths
Red Flags
Consistent operational deficits (e.g., 2023 revenue $2,385 vs. expenses $5,677)
Declining asset base over time (from $108,879 in 2011 to $79,757 in 2023)
Negative revenue reported in 2020 ($-22,504) without clear explanation in summary data
Strengths
No reported officer compensation, indicating volunteer leadership or very low administrative costs
Minimal liabilities ($0 or $1 across all filings), suggesting sound debt management
Consistent IRS 990 filing history demonstrates transparency and compliance
Spending Breakdown
How The Difference Principle 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
5%
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 Difference Principle Foundation
Is The Difference Principle Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, The Difference Principle Foundation (EIN: 202379220) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
Is The Difference Principle Foundation a good charity to donate to?
The Difference Principle Foundation has a Mission Score of 65/100. Revenue: $13K. Assets: $78K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Difference Principle Foundation?
The Employer Identification Number (EIN) for The Difference Principle Foundation is 202379220. 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 Difference Principle Foundation spend its money?
The Difference Principle Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Difference Principle Foundation's tax-exempt status?
You can verify The Difference Principle Foundation's tax-exempt status using EIN 202379220 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 Difference Principle Foundation appears to be a very small organization with limited financial activity. Over the past several years, its revenue has consistently been low, often less than its expenses, leading to a gradual decline in assets from $108,879 in 2011 to $79,757 in 2023. For instance, in 2023, the organization reported revenue of $2,385 against expenses of $5,677, indicating a deficit. This trend suggests the organization is operating on a very tight budget and may be drawing down its reserves to cover operational costs.
Spending efficiency is difficult to fully assess without a detailed breakdown of expenses beyond what is typically available in a basic 990-EZ summary. However, given the consistently low revenue and the fact that officer compensation has been reported as 0% across all available filings, it suggests that the organization is likely run by volunteers or has very minimal administrative overhead. The consistent reporting of minimal liabilities ($0 or $1) indicates good financial management in terms of debt.
Transparency appears to be adequate for an organization of this size, with consistent annual filings available. The lack of significant revenue or expenses, combined with no reported officer compensation, simplifies the financial picture. However, the sustained operational deficits, such as the -$22,504 revenue reported in 2020, which likely indicates a significant loss or adjustment, warrant closer examination to understand the long-term sustainability and impact of the foundation.