Ray Foundation
Ray Foundation consistently spends more than it earns, drawing down assets.
EIN: 201209964 · Tuscaloosa, AL · NTEE: T22 · Updated: 2026-03-28
Is Ray Foundation Legit?
Significant Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Ray Foundation directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Ray Foundation
Ray Foundation (EIN: 201209964) is a nonprofit organization based in Tuscaloosa, AL, classified under NTEE code T22. The organization reported total revenue of $27K and total assets of $260K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Ray Foundation's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Ray Foundation is a micro nonprofit that has been operating for 22 years, with 10 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -22.8%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $2K |
| Total Expenses | $29K |
| Surplus / Deficit | $-27,275 |
| Total Assets | $260K |
| Total Liabilities | $1 |
| Net Assets | $260K |
| Operating Margin | -1643.1% |
| Debt-to-Asset Ratio | 0.0% |
| Months of Reserves | 107.9 months |
Financial Health Grade: B
In 2023, Ray Foundation reported a deficit of $27K with expenses exceeding revenue, holds 107.9 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), Ray Foundation's revenue has declined at a compound annual growth rate (CAGR) of -22.8%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -64.7% | -47.5% | -3.0% |
| 2022 | -93.7% | +63.1% | -26.8% |
| 2021 | +3087.2% | +268.5% | +6.8% |
| 2020 | -81.4% | -58.6% | -2.0% |
| 2019 | +11.7% | +119.5% | +2.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| 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 Ray Foundation 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: 20%
- programs: 70%
- fundraising: 10%
According to IRS 990 filings, Ray 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 $27K, with expenses exceeding revenue.
- Debt-to-asset ratio: 0.0%.
Executive Compensation Analysis
The Ray Foundation reports 0% officer compensation across all available filings, indicating that no executive salaries are paid, which is highly unusual for an organization with assets over $260,000.
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 Ray Foundation's IRS 990 filings:
- Consistent operating deficits: Expenses frequently and significantly exceed revenue (e.g., 2023 revenue $1,660, expenses $28,935).
- Declining asset base: Assets decreased from $366,458 in 2021 to $260,119 in 2023.
- Negative net income in multiple recent years, indicating unsustainable financial operations.
- Lack of detailed expense breakdown in provided data makes it difficult to assess spending efficiency.
Strengths
The following positive indicators were identified for Ray Foundation:
- Zero officer compensation reported across all filings, indicating no executive salary burden.
- Minimal liabilities ($1 in recent years), suggesting no significant debt burden.
Frequently Asked Questions about Ray Foundation
Is Ray Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Ray Foundation (EIN: 201209964) significant concerns. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
How does Ray Foundation spend its money?
Ray Foundation directs 70% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Ray Foundation tax-deductible?
Ray Foundation is registered as a tax-exempt nonprofit (EIN: 201209964). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How does the Ray Foundation sustain its operations with consistent revenue shortfalls?
The organization appears to be sustaining operations by drawing down its asset base, as evidenced by the decline from $366,458 in 2021 to $260,119 in 2023, given that expenses frequently exceed revenue.
What are the specific categories of expenses that constitute the majority of the organization's spending?
Without a detailed breakdown in the provided data, it's unclear how expenses are categorized beyond total expenses. Further investigation into their Form 990, Part IX, would be needed to determine program, administrative, and fundraising costs.
Is the Ray Foundation at risk of financial insolvency given its spending patterns?
While current liabilities are minimal ($1), the consistent trend of expenses significantly exceeding revenue (e.g., $1,660 revenue vs. $28,935 expenses in 2023) suggests a long-term risk to financial solvency if this trend continues and assets are depleted.
Filing History
IRS 990 filing history for Ray Foundation showing financial trends over 10 years of public records:
Over 10 years of IRS 990 filings (2011–2023), Ray Foundation's revenue has declined by 95.5%, moving from $37K to $2K. Total assets decreased by 39.7% over the same period, from $431K to $260K. Total functional expenses fell by 37.9%, from $47K to $29K. In its most recent filing year (2023), Ray Foundation reported a deficit of $27K, with expenses exceeding revenue. The organization holds $1 in liabilities against $260K in assets (debt-to-asset ratio: 0.0%), resulting in net assets of $260K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $2K | $29K | $260K | $1 | — | — |
| 2022 | $5K | $55K | $268K | $1 | — | View 990 |
| 2021 | $75K | $34K | $366K | $1 | — | View 990 |
| 2020 | $2K | $9K | $343K | $1 | — | View 990 |
| 2019 | $13K | $22K | $350K | $1 | — | View 990 |
| 2015 | $11K | $10K | $343K | $1 | — | View 990 |
| 2014 | $48K | $11K | $342K | $1 | — | View 990 |
| 2013 | $33K | $12K | $306K | $1 | — | View 990 |
| 2012 | $-29,709 | $117K | $284K | $0 | — | View 990 |
| 2011 | $37K | $47K | $431K | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $2K, expenses of $29K, and assets of $260K (revenue -64.7% year-over-year).
- 2022: Revenue of $5K, expenses of $55K, and assets of $268K (revenue -93.7% year-over-year).
- 2021: Revenue of $75K, expenses of $34K, and assets of $366K (revenue +3087.2% year-over-year).
- 2020: Revenue of $2K, expenses of $9K, and assets of $343K (revenue -81.4% year-over-year).
- 2019: Revenue of $13K, expenses of $22K, and assets of $350K (revenue +11.7% year-over-year).
- 2015: Revenue of $11K, expenses of $10K, and assets of $343K (revenue -76.4% year-over-year).
- 2014: Revenue of $48K, expenses of $11K, and assets of $342K (revenue +42.8% year-over-year).
- 2013: Revenue of $33K, expenses of $12K, and assets of $306K.
- 2012: Revenue of $-29,709, expenses of $117K, and assets of $284K (revenue -180.6% year-over-year).
- 2011: Revenue of $37K, expenses of $47K, and assets of $431K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Ray Foundation:
Data Sources and Methodology
This transparency report for Ray 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.