Desert Esperanza Inc
Desert Esperanza Inc. faces persistent operational deficits and declining assets over the past decade.
EIN: 202959364 · Phoenix, AZ · NTEE: L21 · Updated: 2026-03-28
Is Desert Esperanza Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Desert Esperanza Inc directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Desert Esperanza Inc
Desert Esperanza Inc (EIN: 202959364) is a nonprofit organization based in Phoenix, AZ, classified under NTEE code L21. The organization reported total revenue of $100K and total assets of $800K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Desert Esperanza Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Desert Esperanza Inc is a small nonprofit that has been operating for 21 years, with 14 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -0.2%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $89K |
| Total Expenses | $114K |
| Surplus / Deficit | $-24,752 |
| Total Assets | $846K |
| Total Liabilities | $39K |
| Net Assets | $807K |
| Operating Margin | -27.8% |
| Debt-to-Asset Ratio | 4.6% |
| Months of Reserves | 89.3 months |
Financial Health Grade: B
In 2023, Desert Esperanza Inc reported a deficit of $25K with expenses exceeding revenue, holds 89.3 months of operating reserves (strong position), has a debt-to-asset ratio of 4.6% (very low leverage).
Financial Trends
Over 14 years of filings (2011–2023), Desert Esperanza Inc's revenue has declined at a compound annual growth rate (CAGR) of -0.2%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +53.0% | -8.5% | -2.5% |
| 2022 | -26.1% | +10.4% | -5.0% |
| 2021 | -9.6% | -2.7% | -2.8% |
| 2020 | -6.8% | -12.3% | -3.1% |
| 2019 | +10.4% | +10.6% | -4.3% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 2005 |
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 Desert Esperanza Inc with a Mission Score of 55 out of 100 (Fair). 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, Desert Esperanza Inc allocates its expenses as follows: admin: 20%, programs: 70%, fundraising: 10%. Approximately 70% goes to programs, indicating moderate mission focus.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $25K, with expenses exceeding revenue.
- Debt-to-asset ratio: 4.6%.
Executive Compensation Analysis
Officer compensation has been reported as 0% across all available filings, suggesting that executive leadership may be entirely volunteer-based or compensated at extremely low levels, which is unusual for an organization with assets approaching $800,000.
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 Desert Esperanza Inc's IRS 990 filings:
- Consistent operational deficits for over a decade (e.g., 2023: $88,999 revenue vs. $113,751 expenses)
- Declining asset base over time (from $1,151,383 in 2014 to $846,409 in 2023)
- Increasing liabilities in recent years ($15,439 in 2021 to $38,946 in 2023)
- Revenue volatility (e.g., $20,559 in 2014 vs. $88,999 in 2023, with fluctuations in between)
Strengths
The following positive indicators were identified for Desert Esperanza Inc:
- Consistent IRS 990 filing history demonstrating transparency (14 filings)
- No reported officer compensation, potentially indicating efficient use of funds for mission or volunteer leadership
- Maintains a substantial asset base relative to annual revenue ($846,409 assets vs. $88,999 revenue in 2023)
Frequently Asked Questions about Desert Esperanza Inc
Is Desert Esperanza Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Desert Esperanza Inc (EIN: 202959364) some concerns. Mission Score: 55/100. 4 red flags identified, 3 strengths noted.
How does Desert Esperanza Inc spend its money?
Desert Esperanza Inc directs 70% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Desert Esperanza Inc tax-deductible?
Desert Esperanza Inc is registered as a tax-exempt nonprofit (EIN: 202959364). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Why has Desert Esperanza Inc. consistently operated at a deficit for the past decade?
The provided data shows that expenses have exceeded revenue in every filing period from 2014 to 2023, indicating a structural imbalance between income and expenditures.
What is the organization's strategy to address its declining asset base?
Assets have decreased from $1,151,383 in 2014 to $846,409 in 2023, a decline of over $300,000, suggesting a need for a clear plan to stabilize or grow its financial reserves.
How does Desert Esperanza Inc. sustain its operations without reporting officer compensation?
The consistent 0% officer compensation across all filings raises questions about the nature of its leadership and operational model, potentially indicating a high reliance on volunteers or external support.
What are the specific breakdowns of program, administrative, and fundraising expenses?
Without this detailed information, it is difficult to fully assess the efficiency of spending and how funds are allocated across different activities.
What caused the significant increase in liabilities from $15,439 in 2021 to $38,946 in 2023?
The nearly tripling of liabilities in two years warrants investigation to understand the nature of these obligations and their impact on the organization's financial health.
Filing History
IRS 990 filing history for Desert Esperanza Inc showing financial trends over 14 years of public records:
Over 14 years of IRS 990 filings (2011–2023), Desert Esperanza Inc's revenue has declined by 1.9%, moving from $91K to $89K. Total assets decreased by 34.8% over the same period, from $1.3M to $846K. Total functional expenses fell by 7.4%, from $123K to $114K. In its most recent filing year (2023), Desert Esperanza Inc reported a deficit of $25K, with expenses exceeding revenue. The organization holds $39K in liabilities against $846K in assets (debt-to-asset ratio: 4.6%), resulting in net assets of $807K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $89K | $114K | $846K | $39K | — | View 990 |
| 2022 | $58K | $124K | $868K | $36K | — | View 990 |
| 2021 | $79K | $113K | $914K | $15K | — | View 990 |
| 2020 | $87K | $116K | $940K | $8K | — | — |
| 2019 | $93K | $132K | $970K | $9K | — | View 990 |
| 2018 | $85K | $119K | $1.0M | $15K | — | View 990 |
| 2017 | $95K | $113K | $1.0M | $6K | — | View 990 |
| 2016 | $92K | $137K | $1.1M | $26K | — | View 990 |
| 2015 | $69K | $106K | $1.1M | $19K | — | View 990 |
| 2014 | $21K | $25K | $1.2M | $10K | — | View 990 |
| 2014 | $74K | $102K | $1.2M | $29K | — | View 990 |
| 2013 | $78K | $113K | $1.2M | $6K | — | View 990 |
| 2012 | $84K | $116K | $1.2M | $12K | — | View 990 |
| 2011 | $91K | $123K | $1.3M | $58K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $89K, expenses of $114K, and assets of $846K (revenue +53.0% year-over-year).
- 2022: Revenue of $58K, expenses of $124K, and assets of $868K (revenue -26.1% year-over-year).
- 2021: Revenue of $79K, expenses of $113K, and assets of $914K (revenue -9.6% year-over-year).
- 2020: Revenue of $87K, expenses of $116K, and assets of $940K (revenue -6.8% year-over-year).
- 2019: Revenue of $93K, expenses of $132K, and assets of $970K (revenue +10.4% year-over-year).
- 2018: Revenue of $85K, expenses of $119K, and assets of $1.0M (revenue -11.3% year-over-year).
- 2017: Revenue of $95K, expenses of $113K, and assets of $1.0M (revenue +3.4% year-over-year).
- 2016: Revenue of $92K, expenses of $137K, and assets of $1.1M (revenue +33.3% year-over-year).
- 2015: Revenue of $69K, expenses of $106K, and assets of $1.1M (revenue +236.6% year-over-year).
- 2014: Revenue of $21K, expenses of $25K, and assets of $1.2M (revenue -72.1% year-over-year).
- 2014: Revenue of $74K, expenses of $102K, and assets of $1.2M (revenue -5.6% year-over-year).
- 2013: Revenue of $78K, expenses of $113K, and assets of $1.2M (revenue -7.2% year-over-year).
- 2012: Revenue of $84K, expenses of $116K, and assets of $1.2M (revenue -7.2% year-over-year).
- 2011: Revenue of $91K, expenses of $123K, and assets of $1.3M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Desert Esperanza Inc:
Data Sources and Methodology
This transparency report for Desert Esperanza 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.