Quick charity verification for The Grace And Mercy Foundation Inc (EIN: 208050779)
Verdict: The Grace And Mercy Foundation Inc appears trustworthy
75/100Mission Score
$242.1MRevenue
$495.2MAssets
3Red Flags
3Strengths
Red Flags
Highly volatile revenue, including significant negative revenue in 2022 ($-40,912,250).
Expenses frequently exceed revenue, as seen in 2023 ($56.9M expenses vs. $34.1M revenue), indicating reliance on asset drawdowns.
Lack of detailed expense breakdown (program, admin, fundraising) in provided data makes efficiency assessment difficult.
Strengths
Substantial asset base, nearly $500 million in 2023, providing significant financial capacity.
Consistent reporting of 0% officer compensation, suggesting efficient use of funds at the executive level.
Long history of IRS 990 filings (10 filings), indicating a commitment to transparency and compliance.
Spending Breakdown
How The Grace And Mercy Foundation Inc allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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 Grace And Mercy Foundation Inc
Is The Grace And Mercy Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, The Grace And Mercy Foundation Inc (EIN: 208050779) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is The Grace And Mercy Foundation Inc a good charity to donate to?
The Grace And Mercy Foundation Inc has a Mission Score of 75/100. Revenue: $242.1M. Assets: $495.2M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Grace And Mercy Foundation Inc?
The Employer Identification Number (EIN) for The Grace And Mercy Foundation Inc is 208050779. 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 Grace And Mercy Foundation Inc spend its money?
The Grace And Mercy Foundation Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Grace And Mercy Foundation Inc's tax-exempt status?
You can verify The Grace And Mercy Foundation Inc's tax-exempt status using EIN 208050779 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 Grace And Mercy Foundation Inc demonstrates a mixed financial picture based on its IRS 990 filings. While the organization has substantial assets, reaching nearly $500 million in the latest period, its revenue has been highly volatile, including a significant negative revenue of $-40,912,250 in 2022. This volatility makes consistent financial planning and assessment challenging. The foundation's expenses have generally increased over time, reaching $56,945,043 in 2023, often exceeding revenue in recent years, as seen in 2023 where expenses were $56.9M against $34.1M in revenue. This suggests the organization is drawing down on its asset base or relying on prior period gains.
Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses, it's difficult to fully assess. However, the consistent reporting of 0% officer compensation across all filings is a positive indicator of efficient use of funds at the executive level, suggesting that leadership is either unpaid or compensated through other means not classified as officer compensation on the 990. The organization's NTEE code T20 (Philanthropy, Voluntarism, and Grantmaking Foundations) implies its primary activity is grantmaking, which typically has lower administrative overhead compared to direct service charities.
Transparency appears to be adequate given the consistent filing of IRS Form 990s over a decade. The absence of officer compensation is a notable point for transparency, as it indicates either a volunteer board or compensation structured in a way that doesn't appear in that specific line item, which could warrant further inquiry for a complete picture. The significant fluctuations in revenue and expenses, particularly the negative revenue in 2022, highlight the need for stakeholders to review the full financial statements to understand the underlying causes and the foundation's long-term sustainability strategy.