Third Way
Third Way shows consistent revenue growth and strong asset accumulation with no reported officer compensation.
EIN: 201734070 · Washington, DC · NTEE: R99 · Updated: 2026-03-28
Is Third Way Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Third Way directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Third Way
Third Way (EIN: 201734070) is a nonprofit organization based in Washington, DC, classified under NTEE code R99. The organization reported total revenue of $60.6M and total assets of $66.0M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Third Way's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Third Way is a major 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 9.5%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $27.2M |
| Total Expenses | $21.3M |
| Surplus / Deficit | +$5.9M |
| Total Assets | $57.6M |
| Total Liabilities | $7.6M |
| Net Assets | $50.0M |
| Operating Margin | 21.7% |
| Debt-to-Asset Ratio | 13.2% |
| Months of Reserves | 32.5 months |
Financial Health Grade: A
In 2023, Third Way reported a surplus of $5.9M with revenue exceeding expenses, holds 32.5 months of operating reserves (strong position), has a debt-to-asset ratio of 13.2% (very low leverage).
Financial Trends
Over 13 years of filings (2011–2023), Third Way's revenue has grown at a compound annual growth rate (CAGR) of 9.5%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -1.0% | -7.9% | +18.5% |
| 2022 | +13.6% | +25.6% | +4.7% |
| 2021 | +31.2% | +18.6% | +19.3% |
| 2020 | +13.8% | +10.8% | +32.5% |
| 2019 | +397.0% | +25.4% | +18.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 3000 |
| 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 Third Way 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: 75%
- fundraising: 10%
According to IRS 990 filings, Third Way 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 surplus of $5.9M, with revenue exceeding expenses.
- Debt-to-asset ratio: 13.2%.
Executive Compensation Analysis
The IRS 990 filings consistently report 0% for officer compensation across all periods, which is unusual for an organization of Third Way's size and revenue, suggesting executive compensation may be categorized differently or paid through related entities.
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 Third Way's IRS 990 filings:
- Consistent 0% officer compensation reported, which is atypical for an organization of this scale and could obscure executive pay structures.
Strengths
The following positive indicators were identified for Third Way:
- Strong financial health with consistent revenue growth, from $8.7M in 2014 to $27.1M in 2023.
- Significant asset accumulation, reaching $57.6M in 2023, providing financial stability.
- Healthy operating surpluses, with 2023 revenue exceeding expenses by nearly $6 million ($27,152,185 vs. $21,266,704).
- Consistent IRS 990 filing history, indicating good compliance and transparency.
- Well-managed liabilities relative to assets, with a low liability-to-asset ratio.
Frequently Asked Questions about Third Way
Is Third Way a legitimate charity?
Based on AI analysis of IRS 990 filings, Third Way (EIN: 201734070) some concerns. Mission Score: 85/100. 1 red flag identified, 5 strengths noted.
How does Third Way spend its money?
Third Way directs 75% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Third Way tax-deductible?
Third Way is registered as a tax-exempt nonprofit (EIN: 201734070). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How does Third Way manage executive compensation if 'Officer Comp' is consistently reported as 0%?
The consistent reporting of 0% for officer compensation across all 13 filings for an organization with revenues exceeding $27 million in 2023 is highly unusual. This could indicate that key executives are compensated through a related organization, as independent contractors, or that the compensation is not classified under 'officer compensation' as defined by the IRS for Form 990 purposes.
What are the specific program activities that account for the majority of Third Way's expenses?
Based solely on the provided summary data, the specific program activities are not detailed. A deeper dive into the full IRS Form 990, particularly Part III (Statement of Program Service Accomplishments) and Schedule O, would be necessary to understand the nature and scope of their programs.
What is the source of Third Way's significant revenue growth over the past decade?
Third Way's revenue grew from $8,786,047 in 2014 to $27,152,185 in 2023. To understand the source of this growth, one would need to examine the revenue breakdown in the full 990 filings, specifically Part VIII (Statement of Revenue), to identify contributions, grants, program service revenue, or other income streams driving this increase.
Filing History
IRS 990 filing history for Third Way showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Third Way's revenue has grown by 198.4%, moving from $9.1M to $27.2M. Total assets increased by 234.6% over the same period, from $17.2M to $57.6M. Total functional expenses rose by 234.3%, from $6.4M to $21.3M. In its most recent filing year (2023), Third Way reported a surplus of $5.9M, with revenue exceeding expenses. The organization holds $7.6M in liabilities against $57.6M in assets (debt-to-asset ratio: 13.2%), resulting in net assets of $50.0M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $27.2M | $21.3M | $57.6M | $7.6M | — | View 990 |
| 2022 | $27.4M | $23.1M | $48.6M | $8.2M | — | View 990 |
| 2021 | $24.1M | $18.4M | $46.4M | $3.9M | — | View 990 |
| 2020 | $18.4M | $15.5M | $38.9M | $5.5M | — | — |
| 2019 | $16.2M | $14.0M | $29.3M | $2.1M | — | View 990 |
| 2018 | $3.3M | $11.2M | $24.9M | $2.2M | — | View 990 |
| 2017 | $11.7M | $10.6M | $33.1M | $2.0M | — | View 990 |
| 2016 | $10.4M | $8.7M | $28.0M | $372K | — | View 990 |
| 2015 | $10.9M | $8.9M | $25.5M | $526K | — | View 990 |
| 2014 | $8.8M | $8.8M | $24.7M | $738K | — | View 990 |
| 2013 | $9.3M | $8.0M | $23.8M | $696K | — | View 990 |
| 2012 | $9.3M | $7.2M | $20.0M | $522K | — | View 990 |
| 2011 | $9.1M | $6.4M | $17.2M | $574K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $27.2M, expenses of $21.3M, and assets of $57.6M (revenue -1.0% year-over-year).
- 2022: Revenue of $27.4M, expenses of $23.1M, and assets of $48.6M (revenue +13.6% year-over-year).
- 2021: Revenue of $24.1M, expenses of $18.4M, and assets of $46.4M (revenue +31.2% year-over-year).
- 2020: Revenue of $18.4M, expenses of $15.5M, and assets of $38.9M (revenue +13.8% year-over-year).
- 2019: Revenue of $16.2M, expenses of $14.0M, and assets of $29.3M (revenue +397.0% year-over-year).
- 2018: Revenue of $3.3M, expenses of $11.2M, and assets of $24.9M (revenue -72.3% year-over-year).
- 2017: Revenue of $11.7M, expenses of $10.6M, and assets of $33.1M (revenue +12.9% year-over-year).
- 2016: Revenue of $10.4M, expenses of $8.7M, and assets of $28.0M (revenue -4.5% year-over-year).
- 2015: Revenue of $10.9M, expenses of $8.9M, and assets of $25.5M (revenue +24.0% year-over-year).
- 2014: Revenue of $8.8M, expenses of $8.8M, and assets of $24.7M (revenue -5.6% year-over-year).
- 2013: Revenue of $9.3M, expenses of $8.0M, and assets of $23.8M (revenue -0.2% year-over-year).
- 2012: Revenue of $9.3M, expenses of $7.2M, and assets of $20.0M (revenue +2.5% year-over-year).
- 2011: Revenue of $9.1M, expenses of $6.4M, and assets of $17.2M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Third Way:
Data Sources and Methodology
This transparency report for Third Way 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.