Rainbow Of Challenges Homes Of Bradley

Rainbow Of Challenges Homes Of Bradley faces significant financial challenges with consistent deficits and a recent surge in liabilities.

EIN: 201933279 · Hope, AR · NTEE: L21 · Updated: 2026-03-28

$70KRevenue

$303KAssets

45/100Mission Score (Fair)

L21

About Rainbow Of Challenges Homes Of Bradley

Rainbow Of Challenges Homes Of Bradley (EIN: 201933279) is a nonprofit organization based in Hope, AR, classified under NTEE code L21. The organization reported total revenue of $70K and total assets of $303K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Rainbow Of Challenges Homes Of Bradley's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.

AI Transparency Report

Rainbow Of Challenges Homes Of Bradley appears to be a small organization with consistent revenue and expenses, typically operating at a slight deficit. For example, in 2023, revenue was $59,689 against expenses of $69,918, indicating a $10,229 shortfall. This pattern of expenses exceeding revenue is consistent across most of the reported periods, suggesting a reliance on existing assets or other funding sources to cover operational costs. The organization's assets have shown a gradual decline over the years, from $425,712 in 2015 to $327,591 in 2023, which aligns with the consistent operational deficits. A significant red flag is the substantial increase in liabilities in the 2023 period, jumping from $3,575 in 2022 to $591,103, which warrants further investigation as it far exceeds their assets and could indicate severe financial distress or a major accounting change.

The organization reports 0% officer compensation across all filings, which is a positive indicator for spending efficiency in that area. However, without a detailed breakdown of expenses (program, administrative, fundraising) from the provided data, it's challenging to fully assess spending efficiency. The consistent operational deficits, coupled with declining assets, suggest that while executive compensation is not a concern, the overall financial model may not be sustainable in the long term without significant changes or new funding streams. The sudden spike in liabilities in the latest filing is a critical point for concern regarding financial health and transparency.

Mission Effectiveness Score

NonprofitSpending's AI analysis rates Rainbow Of Challenges Homes Of Bradley with a Mission Score of 45 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: 15%
programs: 80%
fundraising: 5%

According to IRS 990 filings, Rainbow Of Challenges Homes Of Bradley 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.

Executive Compensation Analysis

Executive compensation is reported as 0% across all available filings, indicating that no officers or directors received compensation, which is a positive sign for minimizing overhead in this area for an organization of its size.

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 Rainbow Of Challenges Homes Of Bradley's IRS 990 filings:

Consistent operational deficits (expenses exceeding revenue in most periods).
Significant decline in assets over the past nine years, from $425,712 in 2015 to $327,591 in 2023.
Dramatic and unexplained increase in liabilities from $3,575 in 2022 to $591,103 in 2023, far exceeding current assets.

Strengths

The following positive indicators were identified for Rainbow Of Challenges Homes Of Bradley:

No reported officer compensation, indicating efficient use of funds in executive salaries.
Consistent revenue generation, albeit at a level below expenses.

Frequently Asked Questions about Rainbow Of Challenges Homes Of Bradley

What caused the dramatic increase in liabilities from $3,575 in 2022 to $591,103 in 2023?

The provided data does not specify the reason for this sudden and substantial increase in liabilities. This is a critical financial event that would require reviewing the full IRS Form 990 for the 2023 period, specifically Schedule D (Supplemental Financial Statements) and the Statement of Functional Expenses, to understand the nature of these new obligations.

How does the organization cover its consistent operational deficits?

The consistent pattern of expenses exceeding revenue suggests the organization is drawing down on its assets or utilizing prior year surpluses. The declining trend in assets from $425,712 in 2015 to $327,591 in 2023 supports the idea that deficits are being covered by existing reserves.

What is the long-term sustainability of the organization given its financial trends?

The long-term sustainability is questionable given the consistent operational deficits, declining asset base, and the recent, very large increase in liabilities. Without a significant change in revenue generation or expense management, the current financial trajectory appears unsustainable.

Filing History

IRS 990 filing history for Rainbow Of Challenges Homes Of Bradley showing financial trends over 9 years of public records:

Over 9 years of IRS 990 filings (2015–2023), Rainbow Of Challenges Homes Of Bradley's revenue has grown by 12.8%, moving from $53K to $60K. Total assets decreased by 23% over the same period, from $426K to $328K. Total functional expenses rose by 21.9%, from $57K to $70K. In its most recent filing year (2023), Rainbow Of Challenges Homes Of Bradley reported a deficit of $10K, with expenses exceeding revenue. The organization holds $591K in liabilities against $328K in assets (debt-to-asset ratio: 180.4%), resulting in net assets of $-263,512.

Year	Revenue	Expenses	Assets	Liabilities	Officer Comp.	PDF
2023	$60K	$70K	$328K	$591K	—	View 990
2022	$58K	$64K	$339K	$4K	—	—
2021	$59K	$67K	$344K	$3K	—	—
2020	$57K	$68K	$354K	$5K	—	View 990
2019	$60K	$60K	$373K	$9K	—	View 990
2018	$53K	$60K	$391K	$27K	—	View 990
2017	$48K	$57K	$407K	$38K	—	View 990
2016	$56K	$61K	$417K	$50K	—	View 990
2015	$53K	$57K	$426K	$54K	—	View 990

Year-by-Year Financial Summary

2023: Revenue of $60K, expenses of $70K, and assets of $328K (revenue +2.6% year-over-year).
2022: Revenue of $58K, expenses of $64K, and assets of $339K (revenue -1.2% year-over-year).
2021: Revenue of $59K, expenses of $67K, and assets of $344K (revenue +3.6% year-over-year).
2020: Revenue of $57K, expenses of $68K, and assets of $354K (revenue -4.7% year-over-year).
2019: Revenue of $60K, expenses of $60K, and assets of $373K (revenue +11.7% year-over-year).
2018: Revenue of $53K, expenses of $60K, and assets of $391K (revenue +11.8% year-over-year).
2017: Revenue of $48K, expenses of $57K, and assets of $407K (revenue -15.0% year-over-year).
2016: Revenue of $56K, expenses of $61K, and assets of $417K (revenue +6.1% year-over-year).
2015: Revenue of $53K, expenses of $57K, and assets of $426K.

Data Sources and Methodology

This transparency report for Rainbow Of Challenges Homes Of Bradley 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.