Quick charity verification for Welcoming Light Inc (EIN: 20481648)
Verdict: Welcoming Light Inc appears trustworthy
85/100Mission Score
$382KRevenue
$826KAssets
1Red Flags
4Strengths
Red Flags
Historical liabilities frequently exceeded assets, indicating potential long-term financial risk, though the latest filing shows improvement.
Strengths
Consistent revenue growth over the past few years (e.g., $123,632 in 2020 to $334,373 in 2023).
Expenses consistently lower than revenue, indicating sound financial management.
0% officer compensation reported across all filings, demonstrating high efficiency and dedication of resources to mission.
Positive asset growth from $250,109 in 2020 to $826,331 in 2023.
Spending Breakdown
How Welcoming Light 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 Welcoming Light Inc
Is Welcoming Light Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Welcoming Light Inc (EIN: 20481648) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Welcoming Light Inc a good charity to donate to?
Welcoming Light Inc has a Mission Score of 85/100. Revenue: $382K. Assets: $826K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Welcoming Light Inc?
The Employer Identification Number (EIN) for Welcoming Light Inc is 20481648. 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 Welcoming Light Inc spend its money?
Welcoming Light Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Welcoming Light Inc's tax-exempt status?
You can verify Welcoming Light Inc's tax-exempt status using EIN 20481648 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
Welcoming Light Inc. demonstrates a generally stable financial position with consistent revenue growth over the past few years, increasing from $123,632 in 2020 to $334,373 in 2023. The organization consistently spends less than its revenue, as seen in 2023 where expenses were $243,669 against $334,373 in revenue, indicating sound financial management and an ability to build reserves. However, a notable concern is the organization's liabilities, which have frequently exceeded its assets in prior years, such as in 2022 where liabilities were $944,055 against assets of $871,383. While the latest filing shows assets ($826,331) slightly exceeding liabilities ($808,299), this trend warrants close monitoring.
The organization's spending efficiency appears reasonable, with no reported officer compensation, suggesting that resources are directed towards operations rather than executive salaries. The NTEE code F20 (Housing/Shelter) implies a direct service mission, and the consistent operational expenses indicate ongoing program delivery. The absence of officer compensation also contributes positively to transparency, as it removes a common area of scrutiny for nonprofits. Overall, Welcoming Light Inc. appears to be a financially stable organization with a commitment to its mission, though its historical liability-to-asset ratio is a point to observe.