Quick charity verification for Words Of Light Ministries Inc (EIN: 202537165)
Verdict: Words Of Light Ministries Inc appears trustworthy
85/100Mission Score
$72KRevenue
$61KAssets
0Red Flags
5Strengths
No red flags identified.
Strengths
Consistent growth in assets, from $32,436 in 2019 to $70,521 in 2023, indicating financial health.
Zero reported liabilities across all ten filings, demonstrating strong solvency and financial management.
0% officer compensation reported in all filings, suggesting a volunteer-driven model and efficient use of funds.
Consistent filing of IRS Form 990s, indicating good transparency and compliance.
Positive net income in most recent years (e.g., $88,731 revenue vs. $81,783 expenses in 2022).
Spending Breakdown
How Words Of Light Ministries 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 Words Of Light Ministries Inc
Is Words Of Light Ministries Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Words Of Light Ministries Inc (EIN: 202537165) appears trustworthy. Mission Score: 85/100. 0 red flags identified, 5 strengths noted.
Is Words Of Light Ministries Inc a good charity to donate to?
Words Of Light Ministries Inc has a Mission Score of 85/100. Revenue: $72K. Assets: $61K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Words Of Light Ministries Inc?
The Employer Identification Number (EIN) for Words Of Light Ministries Inc is 202537165. 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 Words Of Light Ministries Inc spend its money?
Words Of Light Ministries Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Words Of Light Ministries Inc's tax-exempt status?
You can verify Words Of Light Ministries Inc's tax-exempt status using EIN 202537165 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
Words Of Light Ministries Inc demonstrates consistent financial activity, with revenues fluctuating but generally staying within a range of $60,000 to $100,000 in recent years. The organization has maintained a healthy asset base, growing from $32,436 in 2019 to $70,521 in 2023, with no reported liabilities across all filings, indicating strong financial solvency. The absence of officer compensation reported in all available filings suggests a volunteer-driven leadership model, which can contribute to lower administrative costs and a higher proportion of funds directed towards programs.
While specific program spending ratios are not detailed in the provided summary, the consistent reporting of zero liabilities and the growth in assets are positive indicators of financial management. The organization's transparency is enhanced by its consistent filing of IRS Form 990s, providing a clear historical record of its financial operations. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories, a precise assessment of spending efficiency is challenging.
Overall, Words Of Light Ministries Inc appears to be a financially stable organization with a conservative approach to compensation, which is a positive sign for donors. The consistent growth in assets and lack of liabilities suggest prudent financial stewardship, though more granular expense data would allow for a more definitive evaluation of program efficiency.