Rachels Kids Inc
Rachels Kids Inc frequently operates at a deficit despite strong asset base and zero officer compensation.
EIN: 201035690 · Memphis, TN · NTEE: B90 · Updated: 2026-03-28
| Metric | Value |
|---|---|
| Total Revenue | $85K |
| Total Expenses | $98K |
| Program Spending | 80% |
| Net Assets | $72K |
| Transparency Score | 85/100 |
Is Rachels Kids Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Rachels Kids Inc directs 80% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Rachels Kids Inc
Rachels Kids Inc (EIN: 201035690) is a nonprofit organization based in Memphis, TN, classified under NTEE code B90. The organization reported total revenue of $85K and total assets of $77K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Rachels Kids Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Rachels Kids Inc is a micro nonprofit that has been operating for 22 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -1.0%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $76K |
| Total Expenses | $98K |
| Surplus / Deficit | $-22,075 |
| Total Assets | $72K |
| Net Assets | $72K |
| Operating Margin | -28.9% |
| Months of Reserves | 8.7 months |
Financial Health Grade: B
In 2023, Rachels Kids Inc reported a deficit of $22K with expenses exceeding revenue, holds 8.7 months of operating reserves (strong position).
Financial Trends
Over 13 years of filings (2011–2023), Rachels Kids Inc's revenue has declined at a compound annual growth rate (CAGR) of -1.0%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +17.0% | +25.2% | -23.5% |
| 2022 | -36.9% | +25.3% | -12.5% |
| 2021 | +54.7% | +34.9% | +61.5% |
| 2020 | +36.6% | -50.7% | +44.5% |
| 2019 | -41.1% | -5.8% | -49.7% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 2004 |
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 Rachels Kids Inc with a Mission Score of 85 out of 100 (Excellent). 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: 80%
- fundraising: 5%
According to IRS 990 filings, Rachels Kids Inc allocates its expenses as follows: admin: 15%, programs: 80%, fundraising: 5%. With 80% 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 $22K, with expenses exceeding revenue.
Executive Compensation Analysis
Executive compensation is reported as 0% across all available filings, indicating that the organization's leadership is either entirely volunteer-based or compensated through non-reportable means, which is highly favorable for donor trust and resource allocation to programs.
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 Rachels Kids Inc's IRS 990 filings:
- Frequent operating deficits: Expenses exceeded revenue in 2023 ($98,458 vs. $76,383), 2022 ($78,637 vs. $65,293), 2019 ($94,260 vs. $48,991), and 2018 ($100,088 vs. $83,114).
- Declining asset trend in recent years: Assets decreased from $107,090 in 2021 to $71,671 in 2023.
Strengths
The following positive indicators were identified for Rachels Kids Inc:
- Zero officer compensation: No officer compensation reported across all filings, indicating strong transparency and likely volunteer leadership.
- Zero liabilities: The organization consistently reports $0 in liabilities, demonstrating excellent debt management and financial stability.
- Consistent asset base: Despite revenue fluctuations, the organization maintains a healthy asset base (e.g., $77,311 latest assets), providing a buffer for operations.
- Strong program focus implied: The absence of executive compensation suggests a high proportion of funds are directed towards program delivery and essential operations.
Frequently Asked Questions about Rachels Kids Inc
Is Rachels Kids Inc a legitimate charity?
Rachels Kids Inc (EIN: 201035690) is a registered tax-exempt nonprofit based in Tennessee. Our AI analysis gives it a Mission Score of 85/100. It has 13 years of IRS 990 filings on record. Total revenue: $85K. 2 red flags identified. 4 strengths noted. Financial health grade: B.
How does Rachels Kids Inc spend its money?
Rachels Kids Inc directs 80% of its spending to programs and services. Fundraising costs 5%. This exceeds the 65% industry benchmark.
Are donations to Rachels Kids Inc tax-deductible?
Rachels Kids Inc is registered as a tax-exempt nonprofit (EIN: 201035690). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
What percentage of Rachels Kids Inc's spending goes to programs?
Rachels Kids Inc directs 80% to programs, 5% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
How does Rachels Kids Inc compare to similar nonprofits?
With a transparency score of 85/100 (Excellent), Rachels Kids Inc is above average for NTEE category B90 nonprofits. The score reflects financial transparency, program spending efficiency, and governance quality based on IRS 990 data.
Where is Rachels Kids Inc located?
Rachels Kids Inc is headquartered in Memphis, Tennessee and files with the IRS under EIN 201035690. It is classified under NTEE code B90.
How many years of IRS 990 filings does Rachels Kids Inc have?
Rachels Kids Inc has 13 years of IRS 990 filings on record at NonprofitSpending. This extensive filing history provides a strong basis for evaluating long-term financial trends. The most recent filing shows $85K in total revenue.
Is Rachels Kids Inc a good charity?
Based on the available data, Rachels Kids Inc appears to be a good charity, particularly due to its strong transparency (0% officer compensation) and consistent asset base. However, potential donors should be aware of its frequent operating deficits.
How does Rachels Kids Inc manage its finances?
The organization manages its finances responsibly by maintaining zero liabilities across all reported periods. While it has experienced revenue fluctuations and frequent operating deficits, it has consistently held a healthy asset base, indicating careful management of its resources.
What is the trend in Rachels Kids Inc's revenue and expenses?
Rachels Kids Inc's revenue and expenses have fluctuated over the years. Notably, expenses have exceeded revenue in several recent periods (e.g., 2023, 2022, 2019, 2018), indicating a trend of operating at a deficit, which could be a concern for long-term sustainability if not addressed.
Filing History
IRS 990 filing history for Rachels Kids Inc showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Rachels Kids Inc's revenue has declined by 10.9%, moving from $86K to $76K. Total assets decreased by 24.3% over the same period, from $95K to $72K. Total functional expenses rose by 16.5%, from $85K to $98K. In its most recent filing year (2023), Rachels Kids Inc reported a deficit of $22K, with expenses exceeding revenue.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $76K | $98K | $72K | $0 | — | — |
| 2022 | $65K | $79K | $94K | $0 | — | View 990 |
| 2021 | $104K | $63K | $107K | $0 | — | — |
| 2020 | $67K | $47K | $66K | $0 | — | View 990 |
| 2019 | $49K | $94K | $46K | $0 | — | View 990 |
| 2018 | $83K | $100K | $91K | $0 | — | View 990 |
| 2017 | $96K | $85K | $108K | $0 | — | View 990 |
| 2016 | $86K | $90K | $173K | $0 | — | View 990 |
| 2015 | $108K | $99K | $177K | $0 | — | View 990 |
| 2014 | $143K | $84K | $168K | $0 | — | View 990 |
| 2013 | $74K | $72K | $109K | $0 | — | View 990 |
| 2012 | $84K | $72K | $106K | $0 | — | View 990 |
| 2011 | $86K | $85K | $95K | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $76K, expenses of $98K, and assets of $72K (revenue +17.0% year-over-year).
- 2022: Revenue of $65K, expenses of $79K, and assets of $94K (revenue -36.9% year-over-year).
- 2021: Revenue of $104K, expenses of $63K, and assets of $107K (revenue +54.7% year-over-year).
- 2020: Revenue of $67K, expenses of $47K, and assets of $66K (revenue +36.6% year-over-year).
- 2019: Revenue of $49K, expenses of $94K, and assets of $46K (revenue -41.1% year-over-year).
- 2018: Revenue of $83K, expenses of $100K, and assets of $91K (revenue -13.0% year-over-year).
- 2017: Revenue of $96K, expenses of $85K, and assets of $108K (revenue +11.1% year-over-year).
- 2016: Revenue of $86K, expenses of $90K, and assets of $173K (revenue -20.1% year-over-year).
- 2015: Revenue of $108K, expenses of $99K, and assets of $177K (revenue -24.8% year-over-year).
- 2014: Revenue of $143K, expenses of $84K, and assets of $168K (revenue +92.9% year-over-year).
- 2013: Revenue of $74K, expenses of $72K, and assets of $109K (revenue -11.8% year-over-year).
- 2012: Revenue of $84K, expenses of $72K, and assets of $106K (revenue -1.9% year-over-year).
- 2011: Revenue of $86K, expenses of $85K, and assets of $95K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Rachels Kids Inc:
Data Sources and Methodology
This transparency report for Rachels Kids 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.