Quick charity verification for Willow Canyon Foundation (EIN: 206135501)
Verdict: Willow Canyon Foundation shows mixed signals
65/100Mission Score
$34KRevenue
$409KAssets
3Red Flags
3Strengths
Red Flags
Consistent deficit spending: Expenses have exceeded revenue in most recent years (e.g., $33,088 expenses vs. $26,085 revenue in 2023).
Declining asset base: Assets have decreased from $446,409 in 2019 to $393,632 in 2023, indicating an unsustainable financial trend.
Lack of detailed spending breakdown: The provided data does not offer specific percentages for program, administrative, or fundraising expenses, making it difficult to fully assess spending efficiency.
Strengths
Zero officer compensation: No officer compensation reported across all filings, indicating a commitment to directing funds towards the mission.
Low liabilities: Liabilities have remained minimal ($1 in recent years), suggesting responsible debt management.
Consistent filing history: 9 filings available demonstrate transparency and compliance with IRS reporting requirements.
Spending Breakdown
How Willow Canyon Foundation 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 Willow Canyon Foundation
Is Willow Canyon Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Willow Canyon Foundation (EIN: 206135501) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
Is Willow Canyon Foundation a good charity to donate to?
Willow Canyon Foundation has a Mission Score of 65/100. Revenue: $34K. Assets: $409K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Willow Canyon Foundation?
The Employer Identification Number (EIN) for Willow Canyon Foundation is 206135501. 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 Willow Canyon Foundation spend its money?
Willow Canyon Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Willow Canyon Foundation's tax-exempt status?
You can verify Willow Canyon Foundation's tax-exempt status using EIN 206135501 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 Willow Canyon Foundation demonstrates consistent financial transparency, with 9 filings available, and reports no officer compensation across all periods, which is a positive indicator for donor trust. However, the organization has consistently spent more than it has brought in over the last five years, with expenses exceeding revenue by an average of $12,000 annually. For example, in 2023, expenses were $33,088 against revenues of $26,085. This trend of deficit spending, while not immediately critical given its asset base, suggests a need for improved financial sustainability or increased fundraising efforts to match its operational costs. The organization's assets have also seen a gradual decline from $446,409 in 2019 to $393,632 in 2023, which is a direct consequence of this spending pattern.
While specific program spending details are not provided in the summary data, the absence of officer compensation suggests that a significant portion of funds, after administrative costs, likely goes towards its mission. The organization's liabilities have remained minimal ($1 in recent years), indicating good financial management in terms of debt. However, the consistent operational deficits are a concern for long-term viability. Donors should seek more detailed information on how funds are allocated to programs versus administrative and fundraising costs to fully assess spending efficiency.