Quick charity verification for The Friendship Foundation (EIN: 208575157)
Verdict: The Friendship Foundation appears trustworthy
75/100Mission Score
$2.6MRevenue
$8.4MAssets
3Red Flags
3Strengths
Red Flags
Significant deficit spending in the latest fiscal period (2023 expenses $3,575,348 exceeded revenue $2,494,844).
Large year-over-year fluctuations in revenue, from $16.6M in 2021 to $2.4M in 2023, indicating potential instability in funding.
Substantial increase in liabilities from $59,124 in 2022 to $2,916,083 in 2023, which could signal new financial obligations or debt.
Strengths
Consistent reporting of 0% officer compensation across all available filings, indicating strong financial stewardship at the executive level.
History of significant asset growth, peaking at over $23 million in 2022, demonstrating capacity for substantial financial resources.
Long filing history (14 filings), suggesting established operations and compliance with IRS reporting requirements.
Spending Breakdown
How The Friendship Foundation allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
10%
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 Friendship Foundation
Is The Friendship Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, The Friendship Foundation (EIN: 208575157) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is The Friendship Foundation a good charity to donate to?
The Friendship Foundation has a Mission Score of 75/100. Revenue: $2.6M. Assets: $8.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Friendship Foundation?
The Employer Identification Number (EIN) for The Friendship Foundation is 208575157. 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 Friendship Foundation spend its money?
The Friendship Foundation allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Friendship Foundation's tax-exempt status?
You can verify The Friendship Foundation's tax-exempt status using EIN 208575157 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 Friendship Foundation exhibits a mixed financial picture with significant fluctuations in revenue and expenses over the past few years. While the organization reported substantial revenue in 2021 ($16,675,270) and 2022 ($7,048,650), the latest filing for 2023 shows a notable decrease in revenue to $2,494,844, accompanied by expenses exceeding revenue at $3,575,348. This indicates a deficit spending in the most recent period, drawing down on assets. The organization's assets have also seen considerable volatility, peaking at $23,218,143 in 2022 before dropping to $6,898,974 in 2023.
Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to fully assess. However, the consistent reporting of 0% officer compensation across all available filings suggests a commitment to minimizing executive overhead, which is a positive indicator for donor confidence. The significant swings in financial metrics warrant closer examination to understand the underlying operational changes and long-term sustainability.
Transparency appears to be strong in terms of executive compensation, with no reported officer compensation. However, the lack of detailed expense categorization in the provided data makes a complete assessment of spending efficiency difficult. The substantial year-over-year changes in revenue and assets suggest a dynamic financial environment that would benefit from clear explanations in public disclosures.