Is Underwood Club Inc Legit?

Red Flags

Consistent operating deficits (expenses exceeding revenue) in recent years, such as $248,462 in expenses vs. $229,655 in revenue in 202406, could be unsustainable long-term without drawing down reserves or increasing revenue.
Lack of detailed functional expense breakdown in provided data makes it difficult to precisely verify program spending efficiency beyond the absence of officer compensation.

Strengths

Zero officer compensation reported across all filings, indicating a strong commitment to directing funds to the mission rather than executive salaries.
Strong asset base consistently over $1.4 million, providing financial stability and reserves.
Very low liabilities, demonstrating excellent financial management and minimal debt burden.
Consistent IRS 990 filing history (13 filings) indicates good compliance and transparency.
Long-term asset growth from $1,396,785 in 201506 to $1,465,254 in 202406.

Spending Breakdown

How Underwood Club 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

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 Underwood Club Inc

Is Underwood Club Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Underwood Club Inc (EIN: 141364657) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 5 strengths noted.

Is Underwood Club Inc a good charity to donate to?

Underwood Club Inc has a Mission Score of 85/100. Revenue: $420K. Assets: $1.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Underwood Club Inc?

The Employer Identification Number (EIN) for Underwood Club Inc is 141364657. 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 Underwood Club Inc spend its money?

Underwood Club Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Underwood Club Inc's tax-exempt status?

You can verify Underwood Club Inc's tax-exempt status using EIN 141364657 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

Underwood Club Inc. demonstrates consistent financial operations, with revenues and expenses generally in a similar range over the past decade. For the most recent period (202406), the organization reported revenues of $229,655 against expenses of $248,462, indicating a slight operating deficit. This trend of expenses occasionally exceeding revenue is not uncommon for nonprofits, but it's worth noting that the organization has maintained a healthy asset base, with assets at $1,465,254 in 202406, significantly exceeding its liabilities of $1,162. The organization's financial stability is further supported by its consistent asset growth over the long term, from $1,396,785 in 201506 to its current level.

Spending efficiency appears to be a strength, as the organization consistently reports 0% officer compensation across all available filings, suggesting that administrative costs related to executive salaries are minimal or non-existent. This indicates a strong commitment to directing resources towards its mission. However, without a detailed breakdown of program, administrative, and fundraising expenses, a precise assessment of spending efficiency is challenging. The consistent low liabilities also point to good financial management.

In terms of transparency, the organization has a robust filing history with 13 IRS 990 filings, indicating regular compliance. The absence of officer compensation is a positive sign for transparency regarding executive pay. To further enhance transparency, a more detailed breakdown of functional expenses would be beneficial for external stakeholders to understand the allocation of funds across programs, administration, and fundraising efforts.

Verdict: Underwood Club Inc appears trustworthy