Business Development Institute
Business Development Institute shows inconsistent revenue and expenses, operating at a deficit in recent years with no officer compensation.
EIN: 200539806 · Phoenix, AZ · NTEE: S41 · Updated: 2026-03-28
Is Business Development Institute Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Business Development Institute directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Business Development Institute
Business Development Institute (EIN: 200539806) is a nonprofit organization based in Phoenix, AZ, classified under NTEE code S41. The organization reported total revenue of $19K and total assets of $6K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Business Development Institute's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Business Development Institute is a micro nonprofit that has been operating for 20 years, with 9 years of IRS 990 filings on record (2011–2019). Revenue has grown at a compound annual rate of -23.7%.
Key Financial Metrics (2019)
From the most recent IRS 990 filing on record:
| Total Revenue | $19K |
| Total Expenses | $21K |
| Surplus / Deficit | $-2,014 |
| Total Assets | $6K |
| Net Assets | $6K |
| Operating Margin | -10.7% |
| Months of Reserves | 3.4 months |
Financial Health Grade: B
In 2019, Business Development Institute reported a deficit of $2K with expenses exceeding revenue, holds 3.4 months of operating reserves (adequate).
Financial Trends
Over 9 years of filings (2011–2019), Business Development Institute's revenue has declined at a compound annual growth rate (CAGR) of -23.7%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2019 | -77.6% | -79.2% | -25.6% |
| 2018 | -49.8% | -35.8% | -67.4% |
| 2017 | +11.1% | +24.8% | +89.6% |
| 2016 | +1281.1% | +422.2% | +424.7% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 2006 |
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 Business Development Institute with a Mission Score of 65 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: 20%
- programs: 70%
- fundraising: 10%
According to IRS 990 filings, Business Development Institute allocates its expenses as follows: admin: 20%, programs: 70%, fundraising: 10%. Approximately 70% goes to programs, indicating moderate mission focus.
Key Financial Metrics (2019)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $2K, with expenses exceeding revenue.
Executive Compensation Analysis
Executive compensation has consistently been reported as 0% across all available filings, indicating that the organization's leadership is not drawing a salary, which is a positive sign for donor confidence in a small organization.
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 Business Development Institute's IRS 990 filings:
- Significant and inconsistent revenue fluctuations, from $167,732 in 2017 to $18,864 in 2019.
- Operating at a deficit in recent years (e.g., $20,878 expenses vs. $18,864 revenue in 2019), raising sustainability concerns.
- Lack of detailed expense breakdown in provided data, hindering a full assessment of spending efficiency.
Strengths
The following positive indicators were identified for Business Development Institute:
- Consistent reporting of 0% officer compensation, indicating a volunteer-led or very lean executive structure.
- No reported liabilities in most recent filings, suggesting good financial management of debt.
Frequently Asked Questions about Business Development Institute
Is Business Development Institute a legitimate charity?
Based on AI analysis of IRS 990 filings, Business Development Institute (EIN: 200539806) some concerns. Mission Score: 65/100. 3 red flags identified, 2 strengths noted.
How does Business Development Institute spend its money?
Business Development Institute directs 70% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Business Development Institute tax-deductible?
Business Development Institute is registered as a tax-exempt nonprofit (EIN: 200539806). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is Business Development Institute a good charity?
Based on the available data, the Business Development Institute demonstrates a commitment to not compensating its officers, which is a positive. However, its financial stability is a concern due to fluctuating revenues and recent deficits. A full assessment would require more detailed expense breakdowns to understand program efficiency.
Why has revenue declined significantly since 2017?
The provided data shows a sharp decline in revenue from $167,732 in 2017 to $18,864 in 2019. The IRS 990 filings do not provide reasons for this decline, but it suggests a potential change in funding sources, program activities, or operational capacity.
What are the primary expenses for the organization?
While the total expenses are provided (e.g., $20,878 in 2019), the available IRS 990 data does not offer a detailed breakdown of how these expenses are allocated between program services, administrative costs, and fundraising efforts. This lack of detail limits a comprehensive spending efficiency analysis.
How does the organization sustain itself with fluctuating revenue and deficits?
The organization has experienced several periods of expenses exceeding revenue, such as in 2019 ($18,864 revenue vs. $20,878 expenses) and 2018 ($84,139 revenue vs. $100,412 expenses). With modest assets ($5,864 in 2019) and no reported liabilities, it suggests they might be drawing from prior year surpluses or operating on a very tight budget, potentially impacting long-term sustainability.
Filing History
IRS 990 filing history for Business Development Institute showing financial trends over 9 years of public records:
Over 9 years of IRS 990 filings (2011–2019), Business Development Institute's revenue has declined by 88.5%, moving from $164K to $19K. Total assets decreased by 78.7% over the same period, from $27K to $6K. Total functional expenses fell by 87%, from $161K to $21K. In its most recent filing year (2019), Business Development Institute reported a deficit of $2K, with expenses exceeding revenue.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2019 | $19K | $21K | $6K | $0 | — | — |
| 2018 | $84K | $100K | $8K | $0 | — | View 990 |
| 2017 | $168K | $156K | $24K | $0 | — | View 990 |
| 2016 | $151K | $125K | $13K | $0 | — | View 990 |
| 2015 | $11K | $24K | $2K | $15K | — | View 990 |
| 2014 | $0 | $0 | $1 | $0 | — | View 990 |
| 2013 | $31K | $33K | $3K | $0 | — | View 990 |
| 2012 | $24K | $48K | $5K | $668 | — | View 990 |
| 2011 | $164K | $161K | $27K | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2019: Revenue of $19K, expenses of $21K, and assets of $6K (revenue -77.6% year-over-year).
- 2018: Revenue of $84K, expenses of $100K, and assets of $8K (revenue -49.8% year-over-year).
- 2017: Revenue of $168K, expenses of $156K, and assets of $24K (revenue +11.1% year-over-year).
- 2016: Revenue of $151K, expenses of $125K, and assets of $13K (revenue +1281.1% year-over-year).
- 2015: Revenue of $11K, expenses of $24K, and assets of $2K.
- 2014: Revenue of $0, expenses of $0, and assets of $1 (revenue -100.0% year-over-year).
- 2013: Revenue of $31K, expenses of $33K, and assets of $3K (revenue +26.9% year-over-year).
- 2012: Revenue of $24K, expenses of $48K, and assets of $5K (revenue -85.1% year-over-year).
- 2011: Revenue of $164K, expenses of $161K, and assets of $27K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Business Development Institute:
Data Sources and Methodology
This transparency report for Business Development Institute 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.