Quick charity verification for The Freedom Resource (EIN: 204541976)
Verdict: The Freedom Resource appears trustworthy
70/100Mission Score
$174KRevenue
$180KAssets
2Red Flags
3Strengths
Red Flags
Limited financial history (only one filing)
NTEE code X99 (Unknown) provides no specific mission insight
Strengths
Operating with a financial surplus ($109,837 revenue vs. $96,122 expenses in 2023)
No reported liabilities ($0 liabilities in 2023)
No officer compensation reported in initial filing, potentially indicating high efficiency or volunteer leadership
Spending Breakdown
How The Freedom Resource 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 Freedom Resource
Is The Freedom Resource a legitimate charity?
Based on AI analysis of IRS 990 filings, The Freedom Resource (EIN: 204541976) appears trustworthy. Mission Score: 70/100. 2 red flags identified, 3 strengths noted.
Is The Freedom Resource a good charity to donate to?
The Freedom Resource has a Mission Score of 70/100. Revenue: $174K. Assets: $180K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Freedom Resource?
The Employer Identification Number (EIN) for The Freedom Resource is 204541976. 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 Freedom Resource spend its money?
The Freedom Resource allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Freedom Resource's tax-exempt status?
You can verify The Freedom Resource's tax-exempt status using EIN 204541976 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 Freedom Resource appears to be a relatively new and small nonprofit, as indicated by its single IRS 990 filing for the period ending December 2023. With reported revenue of $109,837 and expenses of $96,122 in its latest filing, the organization is operating with a modest surplus. Its assets of $128,719 and liabilities of $0 suggest a healthy balance sheet with no debt, which is a positive indicator for a young organization. The absence of reported officer compensation in its initial filing is also noteworthy, suggesting that leadership may be volunteer-based or compensated through other means not captured in this specific line item, which can contribute to higher program efficiency in early stages.
Given its small scale, detailed spending efficiency metrics are harder to fully assess without more granular expense breakdowns. However, the overall financial picture suggests a fiscally responsible start. Transparency is currently limited by the single filing; more filings over time will provide a clearer trend of financial health and operational consistency. The organization's NTEE code X99 (Unknown) does not provide specific insight into its programmatic focus, which could be a minor point for improved transparency in future filings.