Karuna Foundation
Karuna Foundation faces significant operating deficits, spending down assets in recent years.
EIN: 161731977 · Sedona, AZ · NTEE: T20 · Updated: 2026-03-28
Is Karuna Foundation Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Karuna Foundation directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Karuna Foundation
Karuna Foundation (EIN: 161731977) is a nonprofit organization based in Sedona, AZ, classified under NTEE code T20. The organization reported total revenue of $910K and total assets of $2.0M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Karuna Foundation's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Karuna Foundation is a small nonprofit that has been operating for 21 years, with 10 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -12.1%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $9K |
| Total Expenses | $165K |
| Surplus / Deficit | $-156,163 |
| Total Assets | $2.1M |
| Total Liabilities | $1 |
| Net Assets | $2.1M |
| Operating Margin | -1826.0% |
| Debt-to-Asset Ratio | 0.0% |
| Months of Reserves | 150.0 months |
Financial Health Grade: B
In 2023, Karuna Foundation reported a deficit of $156K with expenses exceeding revenue, holds 150.0 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), Karuna Foundation's revenue has declined at a compound annual growth rate (CAGR) of -12.1%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -95.1% | -15.5% | -8.2% |
| 2022 | -11.2% | +12.5% | -0.7% |
| 2021 | +77.7% | -5.7% | +1.0% |
| 2020 | -1.3% | -1.2% | -3.2% |
| 2019 | +130.5% | +8.7% | +0.1% |
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 Karuna 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, Karuna 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 $156K, with expenses exceeding revenue.
- Debt-to-asset ratio: 0.0%.
Executive Compensation Analysis
Officer compensation has consistently been reported as 0% across all available filings, indicating a volunteer-led executive structure or that compensation is covered by other means, which is positive for minimizing 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 Karuna Foundation's IRS 990 filings:
- Consistent and significant operating deficits (e.g., $8,552 revenue vs. $164,715 expenses in 2023).
- Declining revenue trends in recent years, especially compared to earlier periods (e.g., $1,349,451 revenue in 2014 vs. $8,552 in 2023).
- Reliance on asset draw-down to cover operational expenses, indicating an unsustainable financial model.
Strengths
The following positive indicators were identified for Karuna Foundation:
- No reported officer compensation, suggesting a volunteer-driven or highly efficient executive structure.
- Maintains a substantial asset base of over $2 million, providing a buffer despite recent deficits.
- Consistent filing of IRS 990 forms, indicating adherence to transparency requirements.
Frequently Asked Questions about Karuna Foundation
Is Karuna Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Karuna Foundation (EIN: 161731977) some concerns. Mission Score: 55/100. 3 red flags identified, 3 strengths noted.
How does Karuna Foundation spend its money?
Karuna Foundation directs 70% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Karuna Foundation tax-deductible?
Karuna Foundation is registered as a tax-exempt nonprofit (EIN: 161731977). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is Karuna Foundation financially sustainable?
Based on recent filings, Karuna Foundation is not financially sustainable in its current operational model, as expenses have consistently and significantly outpaced revenue, leading to a draw-down on assets. For example, in 2023, revenue was $8,552 while expenses were $164,715.
What is the primary cause of the financial deficits?
The primary cause of the financial deficits is a significant and persistent gap between the organization's revenue generation and its operational expenses. In 2023, expenses were nearly 20 times higher than revenue.
How has the organization's asset base changed over time?
The organization's asset base has generally declined over the past decade, from $2,427,367 in 2014 to $2,058,623 in 2023, reflecting the impact of consistent operating deficits.
Filing History
IRS 990 filing history for Karuna Foundation showing financial trends over 10 years of public records:
Over 10 years of IRS 990 filings (2011–2023), Karuna Foundation's revenue has declined by 78.7%, moving from $40K to $9K. Total assets increased by 47.9% over the same period, from $1.4M to $2.1M. Total functional expenses rose by 91.7%, from $86K to $165K. In its most recent filing year (2023), Karuna Foundation reported a deficit of $156K, with expenses exceeding revenue. The organization holds $1 in liabilities against $2.1M in assets (debt-to-asset ratio: 0.0%), resulting in net assets of $2.1M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $9K | $165K | $2.1M | $1 | — | View 990 |
| 2022 | $174K | $195K | $2.2M | $1 | — | View 990 |
| 2021 | $196K | $173K | $2.3M | $1 | — | — |
| 2020 | $110K | $184K | $2.2M | $1 | — | — |
| 2019 | $112K | $186K | $2.3M | $0 | — | View 990 |
| 2015 | $49K | $171K | $2.3M | $0 | — | View 990 |
| 2014 | $1.3M | $152K | $2.4M | $0 | — | View 990 |
| 2013 | $728 | $86K | $1.2M | $0 | — | View 990 |
| 2012 | $16K | $93K | $1.3M | $0 | — | View 990 |
| 2011 | $40K | $86K | $1.4M | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $9K, expenses of $165K, and assets of $2.1M (revenue -95.1% year-over-year).
- 2022: Revenue of $174K, expenses of $195K, and assets of $2.2M (revenue -11.2% year-over-year).
- 2021: Revenue of $196K, expenses of $173K, and assets of $2.3M (revenue +77.7% year-over-year).
- 2020: Revenue of $110K, expenses of $184K, and assets of $2.2M (revenue -1.3% year-over-year).
- 2019: Revenue of $112K, expenses of $186K, and assets of $2.3M (revenue +130.5% year-over-year).
- 2015: Revenue of $49K, expenses of $171K, and assets of $2.3M (revenue -96.4% year-over-year).
- 2014: Revenue of $1.3M, expenses of $152K, and assets of $2.4M (revenue +185264.1% year-over-year).
- 2013: Revenue of $728, expenses of $86K, and assets of $1.2M (revenue -95.5% year-over-year).
- 2012: Revenue of $16K, expenses of $93K, and assets of $1.3M (revenue -60.1% year-over-year).
- 2011: Revenue of $40K, expenses of $86K, and assets of $1.4M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Karuna Foundation:
Data Sources and Methodology
This transparency report for Karuna 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.