Quick charity verification for Verhagen Foundation (EIN: 203604163)
Verdict: Verhagen Foundation shows mixed signals
55/100Mission Score
$3.7MRevenue
$29KAssets
5Red Flags
3Strengths
Red Flags
Latest reported assets ($28,903) are drastically lower than historical assets (consistently around $3 million), indicating a significant unexplained loss or transfer of assets.
Latest reported revenue ($3,742,534) is an extreme outlier compared to historical revenues (e.g., $31,414 in 2022), suggesting a potential one-time event or reporting anomaly.
Historical expenses frequently exceeded revenue (e.g., 2022 expenses of $180,032 vs. revenue of $31,414), indicating potential operational deficits.
Lack of detailed expense breakdown for the latest period prevents a thorough assessment of spending efficiency.
The combination of a massive revenue surge and a dramatic asset decline in the latest period creates significant financial uncertainty and transparency concerns.
Strengths
Consistent reporting of 0% officer compensation across all filings, indicating a commitment to minimizing executive overhead.
Historically low or zero reported liabilities, suggesting prudent debt management.
Long filing history (8 filings) indicates consistent compliance with IRS reporting requirements, despite financial anomalies.
Spending Breakdown
How Verhagen Foundation allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
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 Verhagen Foundation
Is Verhagen Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Verhagen Foundation (EIN: 203604163) shows mixed signals. Mission Score: 55/100. 5 red flags identified, 3 strengths noted.
Is Verhagen Foundation a good charity to donate to?
Verhagen Foundation has a Mission Score of 55/100. Revenue: $3.7M. Assets: $29K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Verhagen Foundation?
The Employer Identification Number (EIN) for Verhagen Foundation is 203604163. 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 Verhagen Foundation spend its money?
Verhagen Foundation allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Verhagen Foundation's tax-exempt status?
You can verify Verhagen Foundation's tax-exempt status using EIN 203604163 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 Verhagen Foundation exhibits a concerning financial trend, with its latest reported revenue of $3,742,534 significantly diverging from its historical pattern of much lower annual revenues, such as $31,414 in 2022 and $310,545 in 2021. This substantial increase in revenue, coupled with a remarkably low asset base of $28,903 compared to historical assets consistently around $3 million, suggests a potential data discrepancy or a significant, recent financial event that warrants further investigation. The organization's consistent reporting of zero officer compensation across all available filings indicates a commitment to minimizing administrative overhead in this area, which is a positive sign for donor confidence regarding executive pay.
However, the dramatic drop in reported assets from millions to under $30,000, while revenue simultaneously surged, raises serious questions about asset management and financial stability. Without detailed expense breakdowns for the latest period, it's challenging to assess spending efficiency accurately. The historical pattern of expenses often exceeding revenue in earlier periods (e.g., 2022 expenses of $180,032 against revenue of $31,414) also points to potential reliance on reserves or other funding sources, which is not sustainable long-term. The lack of liabilities reported in most periods is a strength, but the overall financial picture is clouded by the recent, drastic changes in reported revenue and assets.