W Earl Richards Charitable Foundation Inc
W Earl Richards Charitable Foundation consistently expends assets for mission, reporting no officer compensation.
EIN: 201939160 · Birmingham, AL · NTEE: B21 · Updated: 2026-03-28
Is W Earl Richards Charitable Foundation Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
W Earl Richards Charitable Foundation Inc directs 90% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About W Earl Richards Charitable Foundation Inc
W Earl Richards Charitable Foundation Inc (EIN: 201939160) is a nonprofit organization based in Birmingham, AL, classified under NTEE code B21. The organization reported total revenue of $4.6M and total assets of $11.3M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of W Earl Richards Charitable Foundation Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
W Earl Richards Charitable Foundation Inc is a mid-size nonprofit that has been operating for 21 years, with 10 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -14.9%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $1.7M |
| Total Expenses | $2.5M |
| Surplus / Deficit | $-857,316 |
| Total Assets | $10.7M |
| Total Liabilities | $1 |
| Net Assets | $10.7M |
| Operating Margin | -51.9% |
| Debt-to-Asset Ratio | 0.0% |
| Months of Reserves | 51.3 months |
Financial Health Grade: B
In 2023, W Earl Richards Charitable Foundation Inc reported a deficit of $857K with expenses exceeding revenue, holds 51.3 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), W Earl Richards Charitable Foundation Inc's revenue has declined at a compound annual growth rate (CAGR) of -14.9%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +265.7% | +25.9% | -8.9% |
| 2022 | -84.2% | -24.6% | -10.2% |
| 2021 | +36.0% | +41.6% | -1.0% |
| 2020 | +417.6% | +2.1% | +1.8% |
| 2019 | -25.7% | +7.7% | -24.1% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| 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 W Earl Richards Charitable Foundation Inc with a Mission Score of 90 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: 5%
- programs: 90%
- fundraising: 5%
According to IRS 990 filings, W Earl Richards Charitable Foundation Inc allocates its expenses as follows: admin: 5%, programs: 90%, fundraising: 5%. With 90% 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 $857K, with expenses exceeding revenue.
- Debt-to-asset ratio: 0.0%.
Executive Compensation Analysis
The organization consistently reports 0% officer compensation across all available filings, indicating that no salaries or other compensation are paid to its officers. This suggests a highly efficient operational model where leadership is likely volunteer-based or compensated through other means not classified as officer compensation, maximizing funds available for charitable programs.
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 W Earl Richards Charitable Foundation Inc's IRS 990 filings:
- Significant asset decline over time (from $21.7M in 2011 to $10.7M in 2023), indicating reliance on asset drawdowns to cover expenses.
- Highly volatile revenue streams, including a negative revenue year in 2014, which could pose long-term sustainability challenges if not managed effectively.
Strengths
The following positive indicators were identified for W Earl Richards Charitable Foundation Inc:
- Zero officer compensation reported across all filings, demonstrating exceptional financial efficiency and dedication to mission.
- Consistently low liabilities, often reported as $1, indicating strong financial management and minimal debt.
- Consistent expenditure levels despite revenue fluctuations, suggesting a stable commitment to program delivery.
- Active distribution of funds, as evidenced by the decline in assets, indicating the foundation is not accumulating wealth but deploying it for charitable purposes.
Frequently Asked Questions about W Earl Richards Charitable Foundation Inc
Is W Earl Richards Charitable Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, W Earl Richards Charitable Foundation Inc (EIN: 201939160) some concerns. Mission Score: 90/100. 2 red flags identified, 4 strengths noted.
How does W Earl Richards Charitable Foundation Inc spend its money?
W Earl Richards Charitable Foundation Inc directs 90% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to W Earl Richards Charitable Foundation Inc tax-deductible?
W Earl Richards Charitable Foundation Inc is registered as a tax-exempt nonprofit (EIN: 201939160). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How does the foundation sustain its operations given fluctuating revenue and consistent expenses?
The foundation appears to sustain its operations by drawing down its substantial asset base. For example, in 2023, revenue was $1,653,255 while expenses were $2,510,571, indicating a deficit covered by existing assets. This trend is visible in multiple years where expenses exceed revenue, leading to a decrease in total assets over time.
What is the nature of the 'Liabilities=$1' reported in most filings?
The consistent reporting of '$1' in liabilities across many years is unusual and often indicates a nominal placeholder or a technical accounting entry rather than a significant financial obligation. It suggests the organization operates with virtually no debt.
What caused the negative revenue reported in 2014?
A negative revenue figure, such as the -$568,417 reported in 2014, typically indicates significant investment losses or substantial returns of contributions during that fiscal period. Without further detail, it's difficult to pinpoint the exact cause, but it points to a year with adverse financial events.
Filing History
IRS 990 filing history for W Earl Richards Charitable Foundation Inc showing financial trends over 10 years of public records:
Over 10 years of IRS 990 filings (2011–2023), W Earl Richards Charitable Foundation Inc's revenue has declined by 85.6%, moving from $11.5M to $1.7M. Total assets decreased by 50.7% over the same period, from $21.8M to $10.7M. Total functional expenses rose by 54.4%, from $1.6M to $2.5M. In its most recent filing year (2023), W Earl Richards Charitable Foundation Inc reported a deficit of $857K, with expenses exceeding revenue. The organization holds $1 in liabilities against $10.7M in assets (debt-to-asset ratio: 0.0%), resulting in net assets of $10.7M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $1.7M | $2.5M | $10.7M | $1 | — | View 990 |
| 2022 | $452K | $2.0M | $11.8M | $1 | — | View 990 |
| 2021 | $2.9M | $2.6M | $13.1M | $1 | — | View 990 |
| 2020 | $2.1M | $1.9M | $13.3M | $1 | — | View 990 |
| 2019 | $407K | $1.8M | $13.0M | $1 | — | — |
| 2015 | $548K | $1.7M | $17.2M | $95K | — | View 990 |
| 2014 | $-568,417 | $1.8M | $18.3M | $115K | — | View 990 |
| 2013 | $1.2M | $2.0M | $20.8M | $135K | — | View 990 |
| 2012 | $1.2M | $1.4M | $21.5M | $6K | — | View 990 |
| 2011 | $11.5M | $1.6M | $21.8M | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $1.7M, expenses of $2.5M, and assets of $10.7M (revenue +265.7% year-over-year).
- 2022: Revenue of $452K, expenses of $2.0M, and assets of $11.8M (revenue -84.2% year-over-year).
- 2021: Revenue of $2.9M, expenses of $2.6M, and assets of $13.1M (revenue +36.0% year-over-year).
- 2020: Revenue of $2.1M, expenses of $1.9M, and assets of $13.3M (revenue +417.6% year-over-year).
- 2019: Revenue of $407K, expenses of $1.8M, and assets of $13.0M (revenue -25.7% year-over-year).
- 2015: Revenue of $548K, expenses of $1.7M, and assets of $17.2M.
- 2014: Revenue of $-568,417, expenses of $1.8M, and assets of $18.3M (revenue -149.1% year-over-year).
- 2013: Revenue of $1.2M, expenses of $2.0M, and assets of $20.8M (revenue +-0.0% year-over-year).
- 2012: Revenue of $1.2M, expenses of $1.4M, and assets of $21.5M (revenue -89.9% year-over-year).
- 2011: Revenue of $11.5M, expenses of $1.6M, and assets of $21.8M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for W Earl Richards Charitable Foundation Inc:
Data Sources and Methodology
This transparency report for W Earl Richards Charitable Foundation 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.