Quick charity verification for Welchwood Foundation Inc (EIN: 203199483)
Verdict: Welchwood Foundation Inc appears trustworthy
75/100Mission Score
$693KRevenue
$3.2MAssets
3Red Flags
4Strengths
Red Flags
Frequent deficit spending (expenses exceeding revenue) in multiple years (e.g., 2020, 2019, 2014, 2012).
Significant year-over-year revenue volatility, making financial planning challenging.
Lack of detailed program spending breakdown in summary data, making efficiency assessment difficult without full 990 review.
Strengths
Strong and stable asset base, consistently over $3 million, providing financial cushion.
Extremely low liabilities ($1 across all filings), indicating excellent debt management.
0% reported officer compensation, suggesting efficient use of funds for leadership or volunteer-driven model.
Consistent filing history, indicating good compliance and transparency with IRS requirements.
Spending Breakdown
How Welchwood Foundation Inc allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
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 Welchwood Foundation Inc
Is Welchwood Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Welchwood Foundation Inc (EIN: 203199483) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 4 strengths noted.
Is Welchwood Foundation Inc a good charity to donate to?
Welchwood Foundation Inc has a Mission Score of 75/100. Revenue: $693K. Assets: $3.2M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Welchwood Foundation Inc?
The Employer Identification Number (EIN) for Welchwood Foundation Inc is 203199483. 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 Welchwood Foundation Inc spend its money?
Welchwood Foundation Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Welchwood Foundation Inc's tax-exempt status?
You can verify Welchwood Foundation Inc's tax-exempt status using EIN 203199483 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 Welchwood Foundation Inc. demonstrates a consistent asset base, maintaining over $3 million in assets in recent years, which suggests financial stability. However, the organization has frequently operated with expenses exceeding revenue, as seen in 2020 ($246,663 expenses vs. $99,599 revenue) and 2019 ($238,750 expenses vs. $157,217 revenue). This trend of deficit spending, while not immediately critical given their substantial assets, warrants closer examination to understand how these deficits are covered and if they are sustainable long-term. The absence of reported officer compensation across all available filings indicates a potential reliance on volunteer leadership or that compensation falls below reporting thresholds, which can be a positive sign for donor confidence regarding administrative costs.
The organization's NTEE code T20 (Philanthropy, Voluntarism, and Grantmaking Foundations) suggests its primary activity is grantmaking. Without detailed program expense breakdowns, it's challenging to fully assess spending efficiency. However, the consistent low liabilities ($1 across all filings) points to strong financial management regarding debt. The significant fluctuation in revenue, from a high of $595,817 in 2013 to $99,599 in 2020, indicates an inconsistent funding stream, which could impact long-term planning and program delivery. The latest reported revenue of $692,991, while higher than previous years, needs to be contextualized with corresponding expenses to determine current financial health.