Is The Promesa Housing Development Fund Corporation Legit?
Quick charity verification for The Promesa Housing Development Fund Corporation (EIN: 133608906)
Verdict: The Promesa Housing Development Fund Corporation appears trustworthy
75/100Mission Score
$5.7MRevenue
$50.7MAssets
2Red Flags
4Strengths
Red Flags
Expenses exceeding revenue in the last two reported periods (2022 and 2023), indicating operating deficits.
High liabilities relative to assets ($35.30M liabilities vs. $46.45M assets in 2023), suggesting significant debt burden.
Strengths
Significant asset growth over the past decade, from $9.59 million in 2012 to $46.45 million in 2023, demonstrating capacity for mission-related investments.
Consistent reporting of 0% officer compensation, suggesting efficient use of funds for programmatic activities.
Consistent filing history (11 filings), indicating good compliance and transparency in reporting.
Focus on housing development (NTEE S210), directly addressing a critical community need.
Spending Breakdown
How The Promesa Housing Development Fund Corporation 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 Promesa Housing Development Fund Corporation
Is The Promesa Housing Development Fund Corporation a legitimate charity?
Based on AI analysis of IRS 990 filings, The Promesa Housing Development Fund Corporation (EIN: 133608906) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 4 strengths noted.
Is The Promesa Housing Development Fund Corporation a good charity to donate to?
The Promesa Housing Development Fund Corporation has a Mission Score of 75/100. Revenue: $5.7M. Assets: $50.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Promesa Housing Development Fund Corporation?
The Employer Identification Number (EIN) for The Promesa Housing Development Fund Corporation is 133608906. 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 Promesa Housing Development Fund Corporation spend its money?
The Promesa Housing Development Fund Corporation allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Promesa Housing Development Fund Corporation's tax-exempt status?
You can verify The Promesa Housing Development Fund Corporation's tax-exempt status using EIN 133608906 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 Promesa Housing Development Fund Corporation demonstrates a consistent commitment to its mission, as evidenced by its NTEE code S210 (Housing Development, Construction & Management). The organization has shown significant growth in assets over the past decade, from $9.59 million in 2012 to $46.45 million in 2023, indicating successful capital accumulation for its housing initiatives. However, recent filings show expenses exceeding revenue, with $9.68 million in expenses against $7.77 million in revenue in 2023, and $9.49 million in expenses against $7.95 million in revenue in 2022. This trend of operating deficits in the last two reported periods warrants closer examination to ensure long-term financial sustainability.
The organization's transparency is bolstered by its consistent filing of IRS Form 990s, with 11 filings available. A notable aspect is the reported 0% officer compensation across all available filings, which suggests either a volunteer-led executive structure or that executive compensation is not reported in this specific line item, which would require further investigation for full transparency. The substantial liabilities, reaching $35.30 million in 2023, relative to assets, indicate a high reliance on debt financing, which is common for housing development funds but still merits careful monitoring.
Overall, while the organization has successfully grown its asset base to support its housing mission, the recent operating deficits and high liabilities are key areas for financial scrutiny. The absence of reported officer compensation is a positive indicator for resource allocation to programs, assuming it accurately reflects the compensation structure. Further analysis of program spending ratios would provide a more complete picture of spending efficiency.