Is William H And Ella W Mcmahanfoundation Inc Legit?
Quick charity verification for William H And Ella W Mcmahanfoundation Inc (EIN: 208721865)
Verdict: William H And Ella W Mcmahanfoundation Inc shows mixed signals
60/100Mission Score
$1.7MRevenue
$804KAssets
3Red Flags
2Strengths
Red Flags
Consistent deficit spending, with expenses exceeding revenue in all reported periods.
Significant decline in assets over the past decade, from $2.1 million in 2011 to $416,431 in 2023.
Discrepancy between 'Latest Revenue' provided and annual reported revenues in IRS 990 filings.
Strengths
No officer compensation reported, indicating efficient use of funds at the executive level.
Low reported liabilities across all filing periods, suggesting good debt management.
Spending Breakdown
How William H And Ella W Mcmahanfoundation 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 William H And Ella W Mcmahanfoundation Inc
Is William H And Ella W Mcmahanfoundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, William H And Ella W Mcmahanfoundation Inc (EIN: 208721865) shows mixed signals. Mission Score: 60/100. 3 red flags identified, 2 strengths noted.
Is William H And Ella W Mcmahanfoundation Inc a good charity to donate to?
William H And Ella W Mcmahanfoundation Inc has a Mission Score of 60/100. Revenue: $1.7M. Assets: $804K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for William H And Ella W Mcmahanfoundation Inc?
The Employer Identification Number (EIN) for William H And Ella W Mcmahanfoundation Inc is 208721865. 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 William H And Ella W Mcmahanfoundation Inc spend its money?
William H And Ella W Mcmahanfoundation Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify William H And Ella W Mcmahanfoundation Inc's tax-exempt status?
You can verify William H And Ella W Mcmahanfoundation Inc's tax-exempt status using EIN 208721865 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 William H And Ella W Mcmahanfoundation Inc demonstrates a consistent pattern of spending more than its revenue in recent years, as evidenced by expenses exceeding revenue in all reported periods from 2011 to 2023. For example, in 2023, the organization reported $241,869 in revenue against $270,301 in expenses. This trend has led to a significant decline in assets over the past decade, from $2,135,449 in 2011 to $416,431 in 2023. While the organization does not report any officer compensation, which is a positive for transparency, the sustained deficit spending raises questions about its long-term financial sustainability and the source of funds covering these shortfalls. The NTEE code T20 suggests it is a grantmaking foundation, which typically distributes funds rather than directly operating programs, making the expense structure important to scrutinize for efficiency in grant distribution versus administrative overhead.
The foundation's financial health appears to be in decline, with assets shrinking considerably. The latest reported assets of $416,431 are significantly lower than the 'Latest Revenue' figure of $1,726,335 provided, which seems to be an outlier or a different type of revenue not reflected in the annual filings. Assuming the annual filing data is the primary source, the foundation's ability to continue its mission at its historical levels is questionable given the asset depletion. The absence of officer compensation is a strong point for transparency and efficient use of funds at the executive level, but the overall financial trajectory warrants close monitoring.