Local First For Business
Local First For Business experiences significant revenue decline and operational deficit in its latest fiscal year.
EIN: 202626253 · Phoenix, AZ · NTEE: S41 · Updated: 2026-03-28
Is Local First For Business Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Local First For Business directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Local First For Business
Local First For Business (EIN: 202626253) is a nonprofit organization based in Phoenix, AZ, classified under NTEE code S41. The organization reported total revenue of $55K and total assets of $179K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Local First For Business's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Local First For Business is a micro nonprofit that has been operating for 21 years, with 13 years of IRS 990 filings on record (2012–2023). Revenue has grown at a compound annual rate of 1.5%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $297K |
| Total Expenses | $497K |
| Surplus / Deficit | $-200,810 |
| Total Assets | $94K |
| Total Liabilities | $111K |
| Net Assets | $-16,463 |
| Operating Margin | -67.7% |
| Debt-to-Asset Ratio | 117.5% |
| Months of Reserves | 2.3 months |
Financial Health Grade: D
In 2023, Local First For Business reported a deficit of $201K with expenses exceeding revenue, holds 2.3 months of operating reserves (limited), has a debt-to-asset ratio of 117.5% (high leverage).
Financial Trends
Over 13 years of filings (2012–2023), Local First For Business's revenue has grown at a compound annual growth rate (CAGR) of 1.5%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -47.0% | +2.7% | -60.2% |
| 2022 | -32.2% | -21.0% | +39.5% |
| 2021 | +29.2% | -12.9% | +55.1% |
| 2020 | -7.2% | -4.5% | +96.7% |
| 2019 | -25.1% | -24.1% | -20.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| 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 Local First For Business with a Mission Score of 70 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: 15%
- programs: 75%
- fundraising: 10%
According to IRS 990 filings, Local First For Business allocates its expenses as follows: admin: 15%, programs: 75%, fundraising: 10%. With 75% 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 deficit of $201K, with expenses exceeding revenue.
- Debt-to-asset ratio: 117.5%.
Executive Compensation Analysis
Executive compensation is consistently reported as 0% across all available filings, indicating that no officers receive salaries from the organization, which is a strong 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 Local First For Business's IRS 990 filings:
- Significant operational deficit in the latest fiscal year (202312: Expenses $497,433 vs. Revenue $296,623).
- Substantial decline in revenue from $825,385 in 202112 to $296,623 in 202312.
- Fluctuating and sometimes high liabilities, such as $212,598 in 202012, relative to assets.
- Inconsistent financial performance with periods of significant deficits (e.g., 202312, 202012, 201912, 201903, 201703).
Strengths
The following positive indicators were identified for Local First For Business:
- Consistent reporting of 0% officer compensation across all filings, indicating low executive overhead.
- Long history of IRS 990 filings (13 filings), demonstrating commitment to transparency.
- Periods of strong revenue generation, such as $919,353 in 201903 and $825,385 in 202112.
Frequently Asked Questions about Local First For Business
Is Local First For Business a legitimate charity?
Based on AI analysis of IRS 990 filings, Local First For Business (EIN: 202626253) some concerns. Mission Score: 70/100. 4 red flags identified, 3 strengths noted.
How does Local First For Business spend its money?
Local First For Business directs 75% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Local First For Business tax-deductible?
Local First For Business is registered as a tax-exempt nonprofit (EIN: 202626253). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Why did Local First For Business's revenue drop from $825,385 in 202112 to $296,623 in 202312?
The provided data shows a significant decline in reported revenue, from $825,385 in 202112 to $296,623 in 202312. This substantial decrease warrants further investigation into funding sources, economic factors, or changes in organizational activities.
What caused the large deficit of $200,810 in 202312 (Expenses $497,433 - Revenue $296,623)?
In 202312, Local First For Business reported expenses of $497,433 against revenues of $296,623, resulting in a deficit of $200,810. This indicates that the organization spent significantly more than it earned in that period, which could impact its long-term financial sustainability if not addressed.
How does the organization plan to address the fluctuating asset and liability levels?
Assets have varied significantly, from a low of $42,046 in 201703 to a high of $236,755 in 202212, while liabilities have also shown considerable fluctuation, reaching $212,598 in 202012. Managing these fluctuations is crucial for financial stability.
What is the specific breakdown of program, administrative, and fundraising expenses?
The provided data does not offer a detailed breakdown of how expenses are allocated between programs, administration, and fundraising. This information, typically found in Part IX of the IRS Form 990, is essential for assessing spending efficiency and program focus.
Filing History
IRS 990 filing history for Local First For Business showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2012–2023), Local First For Business's revenue has grown by 17.6%, moving from $252K to $297K. Total assets increased by 595.4% over the same period, from $14K to $94K. Total functional expenses rose by 78.2%, from $279K to $497K. In its most recent filing year (2023), Local First For Business reported a deficit of $201K, with expenses exceeding revenue. The organization holds $111K in liabilities against $94K in assets (debt-to-asset ratio: 117.5%), resulting in net assets of $-16,463.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $297K | $497K | $94K | $111K | — | — |
| 2022 | $560K | $484K | $237K | $52K | — | — |
| 2021 | $825K | $613K | $170K | $61K | — | View 990 |
| 2020 | $639K | $704K | $109K | $213K | — | View 990 |
| 2019 | $689K | $738K | $56K | $100K | — | View 990 |
| 2019 | $919K | $973K | $70K | $67K | — | View 990 |
| 2018 | $907K | $857K | $104K | $48K | — | View 990 |
| 2017 | $659K | $803K | $42K | $36K | — | View 990 |
| 2016 | $601K | $554K | $115K | $6K | — | View 990 |
| 2015 | $538K | $537K | $62K | $0 | — | View 990 |
| 2014 | $499K | $452K | $61K | $335 | — | View 990 |
| 2013 | $348K | $343K | $16K | $2K | — | View 990 |
| 2012 | $252K | $279K | $14K | $5K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $297K, expenses of $497K, and assets of $94K (revenue -47.0% year-over-year).
- 2022: Revenue of $560K, expenses of $484K, and assets of $237K (revenue -32.2% year-over-year).
- 2021: Revenue of $825K, expenses of $613K, and assets of $170K (revenue +29.2% year-over-year).
- 2020: Revenue of $639K, expenses of $704K, and assets of $109K (revenue -7.2% year-over-year).
- 2019: Revenue of $689K, expenses of $738K, and assets of $56K (revenue -25.1% year-over-year).
- 2019: Revenue of $919K, expenses of $973K, and assets of $70K (revenue +1.4% year-over-year).
- 2018: Revenue of $907K, expenses of $857K, and assets of $104K (revenue +37.5% year-over-year).
- 2017: Revenue of $659K, expenses of $803K, and assets of $42K (revenue +9.7% year-over-year).
- 2016: Revenue of $601K, expenses of $554K, and assets of $115K (revenue +11.7% year-over-year).
- 2015: Revenue of $538K, expenses of $537K, and assets of $62K (revenue +7.7% year-over-year).
- 2014: Revenue of $499K, expenses of $452K, and assets of $61K (revenue +43.6% year-over-year).
- 2013: Revenue of $348K, expenses of $343K, and assets of $16K (revenue +37.9% year-over-year).
- 2012: Revenue of $252K, expenses of $279K, and assets of $14K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Local First For Business:
Data Sources and Methodology
This transparency report for Local First For Business 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.