Root Cause Institute Inc
Root Cause Institute Inc. faces sustained operational deficits and declining assets over the past decade.
EIN: 200703238 · Cambridge, MA · Updated: 2026-03-28
| Metric | Value |
|---|---|
| Total Revenue | $1.9M |
| Total Expenses | $1.9M |
| Program Spending | 75% |
| CEO/Top Officer Pay | $1.5 |
| Net Assets | $643K |
| Transparency Score | 60/100 |
Is Root Cause Institute Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Root Cause Institute Inc directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Root Cause Institute Inc
Root Cause Institute Inc (EIN: 200703238) is a nonprofit organization based in Cambridge, MA. The organization reported total revenue of $1.9M and total assets of $862K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Root Cause Institute Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Root Cause Institute Inc is a mid-size nonprofit that has been operating for 21 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -4.7%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $1.8M |
| Total Expenses | $1.9M |
| Surplus / Deficit | $-162,736 |
| Total Assets | $875K |
| Total Liabilities | $232K |
| Net Assets | $643K |
| Operating Margin | -9.1% |
| Debt-to-Asset Ratio | 26.6% |
| Months of Reserves | 5.4 months |
Financial Health Grade: B
In 2023, Root Cause Institute Inc reported a deficit of $163K with expenses exceeding revenue, holds 5.4 months of operating reserves (adequate), has a debt-to-asset ratio of 26.6% (moderate leverage).
Financial Trends
Over 13 years of filings (2011–2023), Root Cause Institute Inc's revenue has declined at a compound annual growth rate (CAGR) of -4.7%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +10.1% | -4.2% | -32.2% |
| 2022 | -8.6% | +9.1% | -17.3% |
| 2021 | -21.5% | -26.4% | +2.8% |
| 2020 | -2.6% | +5.6% | -9.1% |
| 2019 | -4.0% | +14.1% | -14.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1200 |
| 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 Root Cause Institute Inc with a Mission Score of 60 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, Root Cause Institute Inc 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 $163K, with expenses exceeding revenue.
- Debt-to-asset ratio: 26.6%.
Executive Compensation Analysis
Executive compensation is reported as 0% across all available filings, indicating that no officers received compensation from the organization, which is highly unusual for an organization with revenues consistently over $1.5 million.
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 Root Cause Institute Inc's IRS 990 filings:
- Consistent operational deficits (8 out of 10 years)
- Significant decline in total assets over the past decade (from $2.8M in 2014 to $0.87M in 2023)
- Unusually low (0%) reported officer compensation for an organization of this size
Strengths
The following positive indicators were identified for Root Cause Institute Inc:
- No reported officer compensation, indicating resources are not used for executive salaries
- Long filing history (13 filings) suggests consistent compliance with IRS reporting requirements
Frequently Asked Questions about Root Cause Institute Inc
Is Root Cause Institute Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Root Cause Institute Inc (EIN: 200703238) some concerns. Mission Score: 60/100. 3 red flags identified, 2 strengths noted.
How does Root Cause Institute Inc spend its money?
Root Cause Institute Inc directs 75% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Root Cause Institute Inc tax-deductible?
Root Cause Institute Inc is registered as a tax-exempt nonprofit (EIN: 200703238). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How much does the Root Cause Institute Inc CEO make?
Root Cause Institute Inc's highest-compensated officer earns $1.5 annually. The organization reported $1.9M in total revenue. Executive compensation data is disclosed in IRS 990 filings.
What percentage of Root Cause Institute Inc's spending goes to programs?
Root Cause Institute Inc directs 75% to programs, 10% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
Where is Root Cause Institute Inc located?
Root Cause Institute Inc is headquartered in Cambridge, Massachusetts and files with the IRS under EIN 200703238.
How many years of IRS 990 filings does Root Cause Institute Inc have?
Root Cause Institute 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 $1.9M in total revenue.
Is Root Cause Institute Inc. financially sustainable given its consistent deficits?
The organization has consistently spent more than it earned in 8 of the last 10 years, with expenses exceeding revenue by $162,736 in 2023 and $410,694 in 2022. This pattern raises concerns about its long-term financial sustainability without a clear strategy to balance its budget.
What is the reason for the significant decline in assets?
Assets have decreased from a peak of $2,830,317 in 2014 to $874,826 in 2023. This decline, coupled with consistent operational deficits, suggests that the organization may be drawing down its reserves to cover expenses.
How does the organization manage to operate with 0% officer compensation?
The consistent reporting of 0% officer compensation is highly unusual for an organization of this size and revenue. It suggests that officers may be compensated through other means, or that the organization relies heavily on pro-bono leadership, which could be a strength or a potential area for further inquiry regarding transparency.
Filing History
IRS 990 filing history for Root Cause Institute Inc showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Root Cause Institute Inc's revenue has declined by 44%, moving from $3.2M to $1.8M. Total assets decreased by 21.3% over the same period, from $1.1M to $875K. Total functional expenses fell by 24.9%, from $2.6M to $1.9M. In its most recent filing year (2023), Root Cause Institute Inc reported a deficit of $163K, with expenses exceeding revenue. The organization holds $232K in liabilities against $875K in assets (debt-to-asset ratio: 26.6%), resulting in net assets of $643K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $1.8M | $1.9M | $875K | $232K | — | View 990 |
| 2022 | $1.6M | $2.0M | $1.3M | $529K | — | View 990 |
| 2021 | $1.8M | $1.9M | $1.6M | $389K | — | View 990 |
| 2020 | $2.3M | $2.5M | $1.5M | $256K | — | View 990 |
| 2019 | $2.3M | $2.4M | $1.7M | $136K | — | View 990 |
| 2018 | $2.4M | $2.1M | $1.9M | $330K | — | View 990 |
| 2017 | $2.5M | $1.9M | $1.5M | $198K | — | View 990 |
| 2016 | $2.6M | $3.0M | $1.1M | $297K | — | View 990 |
| 2015 | $2.9M | $3.5M | $1.5M | $313K | — | View 990 |
| 2014 | $4.0M | $3.7M | $2.8M | $527K | — | View 990 |
| 2013 | $2.6M | $3.5M | $2.3M | $357K | — | View 990 |
| 2012 | $4.7M | $2.6M | $2.9M | $113K | — | View 990 |
| 2011 | $3.2M | $2.6M | $1.1M | $346K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $1.8M, expenses of $1.9M, and assets of $875K (revenue +10.1% year-over-year).
- 2022: Revenue of $1.6M, expenses of $2.0M, and assets of $1.3M (revenue -8.6% year-over-year).
- 2021: Revenue of $1.8M, expenses of $1.9M, and assets of $1.6M (revenue -21.5% year-over-year).
- 2020: Revenue of $2.3M, expenses of $2.5M, and assets of $1.5M (revenue -2.6% year-over-year).
- 2019: Revenue of $2.3M, expenses of $2.4M, and assets of $1.7M (revenue -4.0% year-over-year).
- 2018: Revenue of $2.4M, expenses of $2.1M, and assets of $1.9M (revenue -1.7% year-over-year).
- 2017: Revenue of $2.5M, expenses of $1.9M, and assets of $1.5M (revenue -4.4% year-over-year).
- 2016: Revenue of $2.6M, expenses of $3.0M, and assets of $1.1M (revenue -10.5% year-over-year).
- 2015: Revenue of $2.9M, expenses of $3.5M, and assets of $1.5M (revenue -29.1% year-over-year).
- 2014: Revenue of $4.0M, expenses of $3.7M, and assets of $2.8M (revenue +53.2% year-over-year).
- 2013: Revenue of $2.6M, expenses of $3.5M, and assets of $2.3M (revenue -43.6% year-over-year).
- 2012: Revenue of $4.7M, expenses of $2.6M, and assets of $2.9M (revenue +47.4% year-over-year).
- 2011: Revenue of $3.2M, expenses of $2.6M, and assets of $1.1M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Root Cause Institute Inc:
Data Sources and Methodology
This transparency report for Root Cause Institute 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.