Dreams R Us Foundation
Dreams R Us Foundation consistently spends more than it earns, relying on substantial assets.
EIN: 116458173 · Colorado Spgs, CO · NTEE: T60J · Updated: 2026-03-28
Is Dreams R Us Foundation Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Dreams R Us Foundation directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Dreams R Us Foundation
Dreams R Us Foundation (EIN: 116458173) is a nonprofit organization based in Colorado Spgs, CO, classified under NTEE code T60J. The organization reported total revenue of $5.3M and total assets of $15.5M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Dreams R Us Foundation's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Dreams R Us Foundation is a mid-size nonprofit that has been operating for 31 years, with 10 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -10.0%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $279K |
| Total Expenses | $965K |
| Surplus / Deficit | $-685,847 |
| Total Assets | $15.5M |
| Total Liabilities | $1 |
| Net Assets | $15.5M |
| Operating Margin | -245.5% |
| Debt-to-Asset Ratio | 0.0% |
| Months of Reserves | 192.8 months |
Financial Health Grade: B
In 2023, Dreams R Us Foundation reported a deficit of $686K with expenses exceeding revenue, holds 192.8 months of operating reserves (strong position), has a debt-to-asset ratio of 0.0% (very low leverage).
Financial Trends
Over 10 years of filings (2011–2023), Dreams R Us Foundation's revenue has declined at a compound annual growth rate (CAGR) of -10.0%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -57.5% | -8.9% | -4.4% |
| 2022 | -49.1% | +3.9% | -2.4% |
| 2020 | -128.4% | +7.6% | -8.9% |
| 2019 | +128.5% | -2.5% | +10.4% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 1995 |
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 Dreams R Us Foundation 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, Dreams R Us Foundation 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 $686K, with expenses exceeding revenue.
- Debt-to-asset ratio: 0.0%.
Executive Compensation Analysis
Executive compensation is reported as 0% across all available filings, which is unusual for an organization with over $5 million in latest revenue and $15 million in assets. This suggests either a volunteer leadership structure or that compensation is reported under different categories, warranting further investigation.
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 Dreams R Us Foundation's IRS 990 filings:
- Consistent operating deficits (expenses exceeding revenue) in recent years, e.g., 2023 expenses $965,167 vs. revenue $279,320.
- Negative revenue reported in 2020 ($-588,630), which is highly unusual.
- Lack of detailed expense breakdown (program, admin, fundraising) in the summary data, hindering efficiency assessment.
- 0% officer compensation reported across all filings for an organization with significant assets and revenue, which may obscure actual leadership costs.
Strengths
The following positive indicators were identified for Dreams R Us Foundation:
- Maintains substantial assets ($15,541,873 latest assets), providing a financial cushion.
- Consistent filing of IRS 990s (10 filings), indicating good transparency in reporting.
- Long operational history (filings back to 2011), suggesting established presence.
Frequently Asked Questions about Dreams R Us Foundation
Is Dreams R Us Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Dreams R Us Foundation (EIN: 116458173) some concerns. Mission Score: 55/100. 4 red flags identified, 3 strengths noted.
How does Dreams R Us Foundation spend its money?
Dreams R Us Foundation directs 70% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Dreams R Us Foundation tax-deductible?
Dreams R Us Foundation is registered as a tax-exempt nonprofit (EIN: 116458173). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is Dreams R Us Foundation financially sustainable?
Based on the provided data, the organization is not financially sustainable in the short term, as expenses have consistently exceeded revenue in recent years (e.g., $965,167 expenses vs. $279,320 revenue in 2023). It appears to be drawing from its substantial asset base to cover operating deficits.
What is the reason for 0% officer compensation?
The consistent reporting of 0% officer compensation across all filings is unusual for an organization of this size. It could indicate a volunteer leadership, compensation being paid by a related entity, or being reported under a different expense category. Further detail from the full 990 forms would be needed to clarify.
How does the organization fund its operations given the revenue deficits?
With consistent revenue deficits (e.g., -$588,630 revenue in 2020), the organization is likely funding its operations by drawing down its substantial assets, which have remained relatively stable around $15-17 million. This suggests an endowment or investment income is being utilized.
What is the breakdown of program, administrative, and fundraising expenses?
The provided summary data does not offer a detailed breakdown of program, administrative, and fundraising expenses. This information is crucial for assessing the organization's spending efficiency and how much of its budget directly supports its mission.
Filing History
IRS 990 filing history for Dreams R Us Foundation showing financial trends over 10 years of public records:
Over 10 years of IRS 990 filings (2011–2023), Dreams R Us Foundation's revenue has declined by 71.7%, moving from $985K to $279K. Total assets increased by 6.5% over the same period, from $14.6M to $15.5M. Total functional expenses rose by 13.8%, from $848K to $965K. In its most recent filing year (2023), Dreams R Us Foundation reported a deficit of $686K, with expenses exceeding revenue. The organization holds $1 in liabilities against $15.5M in assets (debt-to-asset ratio: 0.0%), resulting in net assets of $15.5M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $279K | $965K | $15.5M | $1 | — | View 990 |
| 2022 | $657K | $1.1M | $16.2M | $1 | — | View 990 |
| 2021 | $1.3M | $1.0M | $16.6M | $1 | — | View 990 |
| 2020 | $-588,630 | $926K | $16.4M | $1 | — | — |
| 2019 | $2.1M | $860K | $18.0M | $1 | — | View 990 |
| 2015 | $908K | $882K | $16.3M | $1 | — | View 990 |
| 2014 | $908K | $997K | $16.3M | $1 | — | View 990 |
| 2013 | $1.3M | $1.1M | $16.4M | $1 | — | View 990 |
| 2012 | $2.5M | $875K | $16.2M | $1 | — | View 990 |
| 2011 | $985K | $848K | $14.6M | $1 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $279K, expenses of $965K, and assets of $15.5M (revenue -57.5% year-over-year).
- 2022: Revenue of $657K, expenses of $1.1M, and assets of $16.2M (revenue -49.1% year-over-year).
- 2021: Revenue of $1.3M, expenses of $1.0M, and assets of $16.6M.
- 2020: Revenue of $-588,630, expenses of $926K, and assets of $16.4M (revenue -128.4% year-over-year).
- 2019: Revenue of $2.1M, expenses of $860K, and assets of $18.0M (revenue +128.5% year-over-year).
- 2015: Revenue of $908K, expenses of $882K, and assets of $16.3M (revenue +0.1% year-over-year).
- 2014: Revenue of $908K, expenses of $997K, and assets of $16.3M (revenue -29.1% year-over-year).
- 2013: Revenue of $1.3M, expenses of $1.1M, and assets of $16.4M (revenue -48.7% year-over-year).
- 2012: Revenue of $2.5M, expenses of $875K, and assets of $16.2M (revenue +153.2% year-over-year).
- 2011: Revenue of $985K, expenses of $848K, and assets of $14.6M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Dreams R Us Foundation:
Data Sources and Methodology
This transparency report for Dreams R Us Foundation 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.