Is United Way Legit?

Spending Breakdown

How United Way allocates its funds across programs, administration, and fundraising.

75%

Program Spending

Healthy — majority goes to mission

15%

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 United Way

Is United Way a legitimate charity?

Based on AI analysis of IRS 990 filings, United Way (EIN: 10276862) appears trustworthy. Mission Score: 70/100. 3 red flags identified, 3 strengths noted.

Is United Way a good charity to donate to?

United Way has a Mission Score of 70/100. Revenue: $1.4M. Assets: $2.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for United Way?

The Employer Identification Number (EIN) for United Way is 10276862. 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 United Way spend its money?

United Way allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify United Way's tax-exempt status?

You can verify United Way's tax-exempt status using EIN 10276862 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

United Way of Kennebunk, ME demonstrates consistent financial activity, with revenues and expenses generally hovering around $1.4 million to $1.7 million over the past nine years. The organization's assets have remained stable, typically around $2 million, indicating a solid financial base. However, the latest filing (201912) shows expenses exceeding revenue by approximately $107,740 ($1,518,092 expenses vs. $1,410,352 revenue), which, while not uncommon for a single year, warrants monitoring to ensure long-term sustainability. The consistent reporting of 0% officer compensation across all filings suggests either a volunteer-led executive team or that compensation is reported under other expense categories, which could impact transparency regarding leadership costs.

Spending efficiency appears to be a mixed bag. While specific program spending percentages are not directly provided in the summary data, the consistent revenue and expense levels suggest a stable operational model. The organization's liabilities have fluctuated but remained a significant portion of assets, for example, $736,116 in liabilities against $1,962,416 in assets in 201912. This level of liabilities, while not necessarily alarming, should be managed carefully. The absence of reported officer compensation is a notable point for transparency, as it could either indicate a highly efficient, volunteer-driven leadership or a lack of detailed disclosure in the provided summary data.

Overall, United Way of Kennebunk, ME appears to be a financially stable organization with consistent operations. The primary areas for closer examination would be the recent deficit in the 201912 period and the detailed breakdown of expenses, particularly regarding administrative and fundraising costs, to fully assess spending efficiency. The consistent asset base and revenue streams are positive indicators of its capacity to continue its mission.

Verdict: United Way appears trustworthy

Red Flags

Strengths