First Step Foundation
First Step Foundation reports over $1 million in revenue with minimal expenses in latest filing, raising questions about operational transparency.
EIN: 201876745 · Hot Springs, AR · NTEE: O11 · Updated: 2026-03-28
Is First Step Foundation Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
First Step Foundation directs 95% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About First Step Foundation
First Step Foundation (EIN: 201876745) is a nonprofit organization based in Hot Springs, AR, classified under NTEE code O11. The organization reported total revenue of $71K and total assets of $1.1M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of First Step Foundation's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
First Step Foundation is a micro nonprofit that has been operating for 20 years, with 12 years of IRS 990 filings on record (2012–2023). Revenue has grown at a compound annual rate of 22.9%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $1.0M |
| Total Expenses | $475 |
| Surplus / Deficit | +$1.0M |
| Total Assets | $1.1M |
| Net Assets | $1.1M |
| Operating Margin | 100.0% |
| Months of Reserves | 26701.6 months |
Financial Health Grade: A
In 2023, First Step Foundation reported a surplus of $1.0M with revenue exceeding expenses, holds 26701.6 months of operating reserves (strong position).
Financial Trends
Over 12 years of filings (2012–2023), First Step Foundation's revenue has grown at a compound annual growth rate (CAGR) of 22.9%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +69924.0% | — | +2149.1% |
| 2022 | -1.0% | -100.0% | +3.2% |
| 2021 | -32.4% | — | +3.2% |
| 2020 | -62.0% | -100.0% | +5.1% |
| 2019 | -80.8% | — | -82.2% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| 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 First Step Foundation 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: 5%
- programs: 95%
- fundraising: 0%
According to IRS 990 filings, First Step Foundation allocates its expenses as follows: admin: 5%, programs: 95%, fundraising: 0%. With 95% 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 surplus of $1.0M, with revenue exceeding expenses.
Executive Compensation Analysis
First Step Foundation consistently reports 0% officer compensation across all available filings, indicating that no salaries or other compensation are paid to its officers. This suggests a volunteer-led or very lean executive structure, which can be a positive for donor confidence regarding overhead.
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 First Step Foundation's IRS 990 filings:
- Highly inconsistent and often extremely low reported expenses relative to revenue, particularly the $475 expense against $1,010,446 revenue in 202306.
- Significant year-over-year revenue volatility, making financial planning and operational stability difficult to assess.
- Lack of clarity on how substantial assets are being deployed for programmatic purposes given minimal reported expenses.
Strengths
The following positive indicators were identified for First Step Foundation:
- Strong asset base of $1,126,221 with no reported liabilities, indicating excellent financial solvency.
- Consistent reporting of 0% officer compensation, suggesting a volunteer-driven leadership and low executive overhead.
- Potential for significant program expansion or long-term sustainability due to accumulated assets.
Frequently Asked Questions about First Step Foundation
Is First Step Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, First Step Foundation (EIN: 201876745) some concerns. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
How does First Step Foundation spend its money?
First Step Foundation directs 95% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to First Step Foundation tax-deductible?
First Step Foundation is registered as a tax-exempt nonprofit (EIN: 201876745). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Why were expenses so low ($475) in the 202306 period despite over $1 million in revenue?
The reported expenses of $475 against $1,010,446 in revenue for the 202306 period are highly unusual and could indicate that a significant portion of the revenue was held as unrestricted net assets, or that the expense reporting was incomplete. It warrants further investigation into the organization's financial statements to understand how such a large revenue was managed with minimal reported outflows.
What is the nature of the significant revenue fluctuations observed across different filing periods?
The revenue has varied wildly, from $1,010,446 in 202306 to as low as $1,443 in 202206. This volatility could be due to large, infrequent grants, capital campaigns, or significant non-cash contributions, but without more detailed financial statements, the exact cause is unclear.
How does First Step Foundation operate with consistently zero reported officer compensation?
The consistent reporting of 0% officer compensation suggests that the organization's leadership is entirely volunteer-based or that compensation is reported under other expense categories, though the latter is less likely given the explicit 'Officer Comp' field. This structure can minimize administrative overhead.
What programs or activities are supported by the organization's assets, given the minimal reported expenses in recent years?
With assets exceeding $1.1 million and minimal reported expenses in several recent periods, it's unclear how these assets are being utilized to further the organization's mission. This could indicate asset accumulation for future projects or investments rather than immediate program delivery.
Filing History
IRS 990 filing history for First Step Foundation showing financial trends over 12 years of public records:
Over 12 years of IRS 990 filings (2012–2023), First Step Foundation's revenue has grown by 869%, moving from $104K to $1.0M. Total assets increased by 53.1% over the same period, from $690K to $1.1M. Total functional expenses fell by 98.3%, from $28K to $475. In its most recent filing year (2023), First Step Foundation reported a surplus of $1.0M, with revenue exceeding expenses.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $1.0M | $475 | $1.1M | $0 | — | View 990 |
| 2022 | $1K | $0 | $47K | $0 | — | View 990 |
| 2021 | $1K | $25 | $46K | $0 | — | View 990 |
| 2020 | $2K | $0 | $44K | $0 | — | View 990 |
| 2019 | $6K | $200K | $42K | $0 | — | View 990 |
| 2018 | $30K | $0 | $236K | $0 | — | View 990 |
| 2017 | $40K | $0 | $207K | $0 | — | View 990 |
| 2016 | $60K | $0 | $167K | $0 | — | View 990 |
| 2015 | $70K | $89 | $107K | $0 | — | View 990 |
| 2014 | $123K | $900K | $38K | $0 | — | View 990 |
| 2013 | $125K | $204 | $815K | $0 | — | View 990 |
| 2012 | $104K | $28K | $690K | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $1.0M, expenses of $475, and assets of $1.1M (revenue +69924.0% year-over-year).
- 2022: Revenue of $1K, expenses of $0, and assets of $47K (revenue -1.0% year-over-year).
- 2021: Revenue of $1K, expenses of $25, and assets of $46K (revenue -32.4% year-over-year).
- 2020: Revenue of $2K, expenses of $0, and assets of $44K (revenue -62.0% year-over-year).
- 2019: Revenue of $6K, expenses of $200K, and assets of $42K (revenue -80.8% year-over-year).
- 2018: Revenue of $30K, expenses of $0, and assets of $236K (revenue -25.2% year-over-year).
- 2017: Revenue of $40K, expenses of $0, and assets of $207K (revenue -33.9% year-over-year).
- 2016: Revenue of $60K, expenses of $0, and assets of $167K (revenue -13.9% year-over-year).
- 2015: Revenue of $70K, expenses of $89, and assets of $107K (revenue -43.6% year-over-year).
- 2014: Revenue of $123K, expenses of $900K, and assets of $38K (revenue -1.0% year-over-year).
- 2013: Revenue of $125K, expenses of $204, and assets of $815K (revenue +19.5% year-over-year).
- 2012: Revenue of $104K, expenses of $28K, and assets of $690K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for First Step Foundation:
Data Sources and Methodology
This transparency report for First Step 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.