Quick charity verification for The Loss Prevention Foundation (EIN: 205822618)
Verdict: The Loss Prevention Foundation appears trustworthy
85/100Mission Score
$2.1MRevenue
$2.7MAssets
2Red Flags
5Strengths
Red Flags
Lack of detailed functional expense breakdown (program, admin, fundraising) in provided data, limiting full spending efficiency analysis.
Consistent 0% officer compensation for an organization of this size and growth could indicate compensation is structured in a non-standard way, potentially through a related entity, which might obscure full compensation costs.
Strengths
Exceptional revenue growth, increasing from $1,007,373 in 2020 to $3,641,418 in 2023.
Strong asset accumulation, growing from $932,064 in 2020 to $2,573,014 in 2023, indicating financial stability and capacity.
Consistent positive net income, with revenue consistently exceeding expenses.
Reported 0% officer compensation across all filings, suggesting highly efficient or volunteer-driven leadership.
Consistent filing history with 13 available IRS 990 filings, indicating good compliance and transparency.
Spending Breakdown
How The Loss Prevention 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 Loss Prevention Foundation
Is The Loss Prevention Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, The Loss Prevention Foundation (EIN: 205822618) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 5 strengths noted.
Is The Loss Prevention Foundation a good charity to donate to?
The Loss Prevention Foundation has a Mission Score of 85/100. Revenue: $2.1M. Assets: $2.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Loss Prevention Foundation?
The Employer Identification Number (EIN) for The Loss Prevention Foundation is 205822618. 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 Loss Prevention Foundation spend its money?
The Loss Prevention Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Loss Prevention Foundation's tax-exempt status?
You can verify The Loss Prevention Foundation's tax-exempt status using EIN 205822618 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 Loss Prevention Foundation demonstrates strong financial health and growth, with revenue increasing significantly from $1,007,373 in 2020 to $3,641,418 in 2023. This substantial growth is accompanied by a healthy accumulation of assets, which have grown from $932,064 in 2020 to $2,573,014 in 2023, indicating effective financial management and reinvestment. The organization consistently maintains a positive net income, with expenses generally well below revenue, such as in 2023 where expenses were $2,626,287 against $3,641,418 in revenue.
Spending efficiency appears to be robust, as the organization has consistently managed to keep officer compensation at 0% across all reported periods, suggesting a volunteer-driven or highly efficient leadership structure. While specific program spending ratios are not detailed in the provided data, the overall financial trajectory suggests a well-managed operation capable of scaling its activities. The consistent growth in assets and revenue, coupled with controlled expenses, points to a sustainable financial model.
Transparency is generally good, with 13 filings available, indicating regular reporting to the IRS. The absence of officer compensation is a notable positive for transparency and public trust. However, without a detailed breakdown of functional expenses (program, administrative, fundraising), a complete assessment of spending efficiency and program focus is limited. Further transparency on these specific expenditure categories would enhance public understanding of how funds are allocated.