The Friendship Foundation

The Friendship Foundation experienced a significant revenue decline and operated at a deficit in its latest fiscal period.

EIN: 208575157 · Redondo Beach, CA · NTEE: P81 · Updated: 2026-03-28

$2.6MRevenue

$8.4MAssets

75/100Mission Score (Good)

P81

About The Friendship Foundation

The Friendship Foundation (EIN: 208575157) is a nonprofit organization based in Redondo Beach, CA, classified under NTEE code P81. The organization reported total revenue of $2.6M and total assets of $8.4M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of The Friendship Foundation's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.

AI Transparency Report

The Friendship Foundation exhibits a mixed financial picture with significant fluctuations in revenue and expenses over the past few years. While the organization reported substantial revenue in 2021 ($16,675,270) and 2022 ($7,048,650), the latest filing for 2023 shows a notable decrease in revenue to $2,494,844, accompanied by expenses exceeding revenue at $3,575,348. This indicates a deficit spending in the most recent period, drawing down on assets. The organization's assets have also seen considerable volatility, peaking at $23,218,143 in 2022 before dropping to $6,898,974 in 2023.

Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to fully assess. However, the consistent reporting of 0% officer compensation across all available filings suggests a commitment to minimizing executive overhead, which is a positive indicator for donor confidence. The significant swings in financial metrics warrant closer examination to understand the underlying operational changes and long-term sustainability.

Transparency appears to be strong in terms of executive compensation, with no reported officer compensation. However, the lack of detailed expense categorization in the provided data makes a complete assessment of spending efficiency difficult. The substantial year-over-year changes in revenue and assets suggest a dynamic financial environment that would benefit from clear explanations in public disclosures.

Mission Effectiveness Score

NonprofitSpending's AI analysis rates The Friendship Foundation with a Mission Score of 75 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: 10%
programs: 80%
fundraising: 10%

According to IRS 990 filings, The Friendship Foundation allocates its expenses as follows: admin: 10%, programs: 80%, fundraising: 10%. With 80% directed toward programs, this reflects a strong commitment to its charitable mission.

Executive Compensation Analysis

Executive compensation is consistently reported as 0% across all available filings, indicating that no officers received compensation, which is highly favorable for donor trust and efficient use of funds.

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 The Friendship Foundation's IRS 990 filings:

Significant deficit spending in the latest fiscal period (2023 expenses $3,575,348 exceeded revenue $2,494,844).
Large year-over-year fluctuations in revenue, from $16.6M in 2021 to $2.4M in 2023, indicating potential instability in funding.
Substantial increase in liabilities from $59,124 in 2022 to $2,916,083 in 2023, which could signal new financial obligations or debt.

Strengths

The following positive indicators were identified for The Friendship Foundation:

Consistent reporting of 0% officer compensation across all available filings, indicating strong financial stewardship at the executive level.
History of significant asset growth, peaking at over $23 million in 2022, demonstrating capacity for substantial financial resources.
Long filing history (14 filings), suggesting established operations and compliance with IRS reporting requirements.

Frequently Asked Questions about The Friendship Foundation

Is The Friendship Foundation a good charity?

The Friendship Foundation demonstrates strong points like 0% officer compensation, suggesting efficient use of funds at the executive level. However, the recent deficit spending in 2023 ($2,494,844 revenue vs. $3,575,348 expenses) and significant fluctuations in revenue and assets warrant further investigation into their financial stability and operational strategy.

Why did The Friendship Foundation's revenue drop so sharply in 2023?

The revenue for The Friendship Foundation decreased from $7,048,650 in 2022 to $2,494,844 in 2023. This significant drop of over 64% would require reviewing their full IRS 990 filing for explanations, such as changes in grant funding, major donations, or fundraising activities.

What caused the large increase in liabilities in 2023?

Liabilities increased from $59,124 in 2022 to $2,916,083 in 2023. This substantial increase suggests new debt, deferred revenue, or other obligations that would need to be detailed in the organization's financial statements to understand its nature and impact.

Filing History

IRS 990 filing history for The Friendship Foundation showing financial trends over 14 years of public records:

Over 14 years of IRS 990 filings (2011–2023), The Friendship Foundation's revenue has grown by 311.7%, moving from $606K to $2.5M. Total assets increased by 911.1% over the same period, from $682K to $6.9M. Total functional expenses rose by 1061.9%, from $308K to $3.6M. In its most recent filing year (2023), The Friendship Foundation reported a deficit of $1.1M, with expenses exceeding revenue. The organization holds $2.9M in liabilities against $6.9M in assets (debt-to-asset ratio: 42.3%), resulting in net assets of $4.0M.

Year	Revenue	Expenses	Assets	Liabilities	Officer Comp.	PDF
2023	$2.5M	$3.6M	$6.9M	$2.9M	—	—
2022	$7.0M	$4.8M	$23.2M	$59K	—	—
2021	$16.7M	$3.4M	$21.1M	$121K	—	View 990
2020	$1.5M	$732K	$7.9M	$217K	—	View 990
2019	$3.4M	$862K	$6.2M	$85K	—	View 990
2018	$1.3M	$751K	$3.5M	$45K	—	View 990
2017	$1.3M	$761K	$2.9M	$23K	—	View 990
2016	$1.2M	$696K	$2.3M	$15K	—	View 990
2015	$73K	$224K	$1.8M	$0	—	View 990
2015	$889K	$587K	$2.0M	$0	—	View 990
2014	$1.1M	$632K	$1.7M	$0	—	View 990
2013	$877K	$626K	$1.2M	$0	—	View 990
2012	$831K	$548K	$965K	$0	—	View 990
2011	$606K	$308K	$682K	$0	—	View 990

Year-by-Year Financial Summary

2023: Revenue of $2.5M, expenses of $3.6M, and assets of $6.9M (revenue -64.6% year-over-year).
2022: Revenue of $7.0M, expenses of $4.8M, and assets of $23.2M (revenue -57.7% year-over-year).
2021: Revenue of $16.7M, expenses of $3.4M, and assets of $21.1M (revenue +1026.2% year-over-year).
2020: Revenue of $1.5M, expenses of $732K, and assets of $7.9M (revenue -56.5% year-over-year).
2019: Revenue of $3.4M, expenses of $862K, and assets of $6.2M (revenue +161.3% year-over-year).
2018: Revenue of $1.3M, expenses of $751K, and assets of $3.5M (revenue -0.9% year-over-year).
2017: Revenue of $1.3M, expenses of $761K, and assets of $2.9M (revenue +9.9% year-over-year).
2016: Revenue of $1.2M, expenses of $696K, and assets of $2.3M (revenue +1541.8% year-over-year).
2015: Revenue of $73K, expenses of $224K, and assets of $1.8M (revenue -91.8% year-over-year).
2015: Revenue of $889K, expenses of $587K, and assets of $2.0M (revenue -19.0% year-over-year).
2014: Revenue of $1.1M, expenses of $632K, and assets of $1.7M (revenue +25.2% year-over-year).
2013: Revenue of $877K, expenses of $626K, and assets of $1.2M (revenue +5.5% year-over-year).
2012: Revenue of $831K, expenses of $548K, and assets of $965K (revenue +37.1% year-over-year).
2011: Revenue of $606K, expenses of $308K, and assets of $682K.

Data Sources and Methodology

This transparency report for The Friendship 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.