Quick charity verification for Wafa House Inc (EIN: 200845890)
Verdict: Wafa House Inc appears trustworthy
75/100Mission Score
$1.8MRevenue
$634KAssets
3Red Flags
3Strengths
Red Flags
Consistent operating deficits in recent years (e.g., $123,740 in 2023, $33,277 in 2021, $21,425 in 2018, $4,949 in 2017, $35,614 in 2016), indicating potential financial instability if not managed by reserves.
0% reported officer compensation for an organization with over $1.5 million in expenses, which warrants further scrutiny for transparency.
Relatively low asset base ($278,784 in 2023) compared to annual expenses ($1,651,336), suggesting limited financial reserves to buffer against future deficits or unexpected costs.
Strengths
Consistent and significant revenue growth over the past decade, from $216,689 in 2014 to $1,527,596 in 2023, demonstrating strong fundraising capabilities.
No reported officer compensation, suggesting a high dedication of funds directly to mission-related activities or volunteer leadership.
Steady increase in assets over time, from $67,456 in 2014 to $278,784 in 2023, indicating some financial growth and capacity building.
Spending Breakdown
How Wafa House 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
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 Wafa House Inc
Is Wafa House Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Wafa House Inc (EIN: 200845890) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is Wafa House Inc a good charity to donate to?
Wafa House Inc has a Mission Score of 75/100. Revenue: $1.8M. Assets: $634K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Wafa House Inc?
The Employer Identification Number (EIN) for Wafa House Inc is 200845890. 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 Wafa House Inc spend its money?
Wafa House Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Wafa House Inc's tax-exempt status?
You can verify Wafa House Inc's tax-exempt status using EIN 200845890 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
Wafa House Inc. demonstrates consistent growth in revenue and expenses over the past decade, indicating an expanding operational scope. For instance, revenue grew from $216,689 in 2014 to $1,527,596 in 2023. The organization generally operates with expenses closely tracking revenue, sometimes exceeding it, as seen in 2023 where expenses were $1,651,336 against $1,527,596 in revenue, leading to a deficit. This suggests a tight financial margin and reliance on current funding for operations. The asset base has also grown significantly, from $67,456 in 2014 to $278,784 in 2023, though it remains relatively modest compared to its annual revenue, indicating limited reserves. The consistent reporting of 0% officer compensation across all filings suggests a commitment to directing funds towards programs, or that executive roles are filled by volunteers or compensated through other means not classified as officer compensation on the 990. Further details on program spending efficiency would require a deeper dive into their functional expense breakdown, which is not provided in this summary.