Better Business Bureau Inc
Better Business Bureau Inc maintains stable assets despite recent operational deficit and no reported officer compensation.
EIN: 160365335 · Amherst, NY · Updated: 2026-03-28
Is Better Business Bureau Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Better Business Bureau Inc directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Better Business Bureau Inc
Better Business Bureau Inc (EIN: 160365335) is a nonprofit organization based in Amherst, NY. The organization reported total revenue of $4.7M and total assets of $5.4M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Better Business Bureau Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Better Business Bureau Inc is a mid-size nonprofit that has been operating for 84 years, with 13 years of IRS 990 filings on record (2012–2023). Revenue has grown at a compound annual rate of 4.9%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $4.1M |
| Total Expenses | $4.4M |
| Surplus / Deficit | $-288,771 |
| Total Assets | $5.4M |
| Total Liabilities | $1.4M |
| Net Assets | $4.0M |
| Operating Margin | -7.0% |
| Debt-to-Asset Ratio | 25.2% |
| Months of Reserves | 14.7 months |
Financial Health Grade: B
In 2023, Better Business Bureau Inc reported a deficit of $289K with expenses exceeding revenue, holds 14.7 months of operating reserves (strong position), has a debt-to-asset ratio of 25.2% (moderate leverage).
Financial Trends
Over 13 years of filings (2012–2023), Better Business Bureau Inc's revenue has grown at a compound annual growth rate (CAGR) of 4.9%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +8.6% | +16.7% | +3.0% |
| 2022 | -13.5% | -2.4% | -7.9% |
| 2021 | +27.1% | +19.2% | +19.2% |
| 2020 | -1.2% | -5.4% | +8.3% |
| 2019 | +9.6% | +10.5% | +6.6% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 1942 |
Classification data from ProPublica Nonprofit Explorer. Additional BMF data may be available after enrichment.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Better Business Bureau Inc with a Mission Score of 78 out of 100 (Good). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 15%
- programs: 75%
- fundraising: 10%
According to IRS 990 filings, Better Business Bureau Inc allocates its expenses as follows: admin: 15%, programs: 75%, fundraising: 10%. With 75% directed toward programs, this reflects a strong commitment to its charitable mission.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $289K, with expenses exceeding revenue.
- Debt-to-asset ratio: 25.2%.
Executive Compensation Analysis
The organization consistently reports 0% officer compensation across all available filings, which is unusual for an organization of its size with annual revenues exceeding $4 million. This suggests either a volunteer executive leadership or that executive compensation is categorized differently within the IRS 990, warranting further investigation into the full filing details.
Executive compensation data is sourced from IRS 990 filings, which require nonprofits to disclose the compensation of officers, directors, trustees, and key employees. NonprofitSpending analyzes this data relative to the organization's total revenue and sector benchmarks to assess whether executive pay is reasonable.
Red Flags
The following concerns were identified during AI analysis of Better Business Bureau Inc's IRS 990 filings:
- Operational deficit in the most recent filing (2023 expenses exceeded revenue by $288,771)
- Consistent 0% reported officer compensation, which is atypical for an organization of this size and could indicate a lack of transparency in executive remuneration reporting if compensation exists but is not disclosed under this line item.
Strengths
The following positive indicators were identified for Better Business Bureau Inc:
- Consistent filing of IRS Form 990s for 13 periods, demonstrating transparency.
- Strong asset base ($5,400,813 in 2023) relative to liabilities ($1,361,975 in 2023), indicating good financial health.
- General revenue growth trend over the past decade, from $2.6M in 2014 to over $4.1M in 2023.
- History of operational surpluses in most years prior to 2023, suggesting effective financial management.
Frequently Asked Questions about Better Business Bureau Inc
Is Better Business Bureau Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Better Business Bureau Inc (EIN: 160365335) some concerns. Mission Score: 78/100. 2 red flags identified, 4 strengths noted.
How does Better Business Bureau Inc spend its money?
Better Business Bureau Inc directs 75% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Better Business Bureau Inc tax-deductible?
Better Business Bureau Inc is registered as a tax-exempt nonprofit (EIN: 160365335). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is Better Business Bureau Inc financially stable?
Yes, the organization appears financially stable. While it experienced a deficit in 2023 ($4,120,547 revenue vs. $4,409,318 expenses), its assets of $5,400,813 significantly outweigh its liabilities of $1,361,975, indicating a strong reserve.
How has Better Business Bureau Inc's revenue trended?
Better Business Bureau Inc's revenue has shown a general upward trend over the past decade, growing from $2,630,126 in 2014 to $4,120,547 in 2023, with some fluctuations year-to-year.
What is the organization's asset-to-liability ratio?
In 2023, the organization's assets were $5,400,813 and liabilities were $1,361,975, resulting in an asset-to-liability ratio of approximately 3.96:1, which is a healthy indicator of financial solvency.
Why is officer compensation reported as 0%?
The consistent reporting of 0% officer compensation across all filings is unusual for an organization of this scale. This could mean executive leadership is entirely volunteer, or their compensation is reported under different categories within the full IRS 990, which would require reviewing the detailed forms to understand fully.
Filing History
IRS 990 filing history for Better Business Bureau Inc showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2012–2023), Better Business Bureau Inc's revenue has grown by 68.6%, moving from $2.4M to $4.1M. Total assets increased by 57.4% over the same period, from $3.4M to $5.4M. Total functional expenses rose by 102.8%, from $2.2M to $4.4M. In its most recent filing year (2023), Better Business Bureau Inc reported a deficit of $289K, with expenses exceeding revenue. The organization holds $1.4M in liabilities against $5.4M in assets (debt-to-asset ratio: 25.2%), resulting in net assets of $4.0M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $4.1M | $4.4M | $5.4M | $1.4M | — | View 990 |
| 2022 | $3.8M | $3.8M | $5.2M | $1.2M | — | View 990 |
| 2021 | $4.4M | $3.9M | $5.7M | $1.2M | — | — |
| 2020 | $3.5M | $3.2M | $4.8M | $1.0M | — | — |
| 2019 | $3.5M | $3.4M | $4.4M | $1.0M | — | View 990 |
| 2018 | $3.2M | $3.1M | $4.1M | $960K | — | View 990 |
| 2017 | $3.1M | $3.1M | $3.8M | $651K | — | View 990 |
| 2016 | $2.9M | $2.7M | $4.0M | $855K | — | View 990 |
| 2015 | $2.7M | $2.5M | $3.8M | $763K | — | View 990 |
| 2014 | $2.6M | $2.4M | $3.5M | $714K | — | View 990 |
| 2013 | $2.0M | $1.8M | $3.3M | $789K | — | View 990 |
| 2013 | $2.5M | $2.1M | $3.1M | $805K | — | View 990 |
| 2012 | $2.4M | $2.2M | $3.4M | $1.5M | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $4.1M, expenses of $4.4M, and assets of $5.4M (revenue +8.6% year-over-year).
- 2022: Revenue of $3.8M, expenses of $3.8M, and assets of $5.2M (revenue -13.5% year-over-year).
- 2021: Revenue of $4.4M, expenses of $3.9M, and assets of $5.7M (revenue +27.1% year-over-year).
- 2020: Revenue of $3.5M, expenses of $3.2M, and assets of $4.8M (revenue -1.2% year-over-year).
- 2019: Revenue of $3.5M, expenses of $3.4M, and assets of $4.4M (revenue +9.6% year-over-year).
- 2018: Revenue of $3.2M, expenses of $3.1M, and assets of $4.1M (revenue +3.7% year-over-year).
- 2017: Revenue of $3.1M, expenses of $3.1M, and assets of $3.8M (revenue +7.2% year-over-year).
- 2016: Revenue of $2.9M, expenses of $2.7M, and assets of $4.0M (revenue +6.9% year-over-year).
- 2015: Revenue of $2.7M, expenses of $2.5M, and assets of $3.8M (revenue +1.9% year-over-year).
- 2014: Revenue of $2.6M, expenses of $2.4M, and assets of $3.5M (revenue +31.6% year-over-year).
- 2013: Revenue of $2.0M, expenses of $1.8M, and assets of $3.3M (revenue -18.5% year-over-year).
- 2013: Revenue of $2.5M, expenses of $2.1M, and assets of $3.1M (revenue +0.3% year-over-year).
- 2012: Revenue of $2.4M, expenses of $2.2M, and assets of $3.4M.
Data Sources and Methodology
This transparency report for Better Business Bureau Inc is generated by NonprofitSpending's AI analysis engine. The data is sourced from publicly available IRS 990 filings accessed through the ProPublica Nonprofit Explorer API and IRS electronic filing records. The Mission Score, spending breakdown, and other analytical insights are produced by artificial intelligence and should be used as one of multiple factors when evaluating a nonprofit organization.
IRS 990 forms are annual information returns that most tax-exempt organizations must file with the IRS. These forms provide detailed financial information including revenue, expenses, assets, liabilities, and compensation of officers. NonprofitSpending processes this data to provide accessible transparency reports for donors, researchers, and the general public.
Disclaimer
AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.