According to the Earthworks audit of December 31, 2022 (Note 12, Related Party Transactions): "Earthworks Action Fund, a Section 501(c)(4) nonprofit organization, is a legally-separate, tax-exempt organization established by Earthworks in December 2017. Earthworks Action Fund is an affiliated but separate organization from Earthworks. As a 501(c)(4) organization, Earthworks Action Fund engages in various advocacy and political activities for which Earthworks, a 501(c)(3) organization, faces certain legal limitations or restrictions." "Earthworks provides various administrative services for Earthworks Action Fund, including office space, personnel, use of equipment, and other overhead costs. Total expenses paid by Earthworks and charged to Earthworks Action Fund were $361,656 and $70,252 for the years ended December 31, 2022 and 2021, respectively..."
[Note: CharityWatch does not rate Earthworks Action Fund at this time due to its small size. Should CharityWatch provide a rating for Earthworks Action Fund in the future, it will be rated separately from Earthworks because CharityWatch separates the ratings for 501(c)(3) & 501(c)(4) organizations, even when they are included together in a consolidated audit, due to their differing treatments under the IRS tax code. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found on the Our Process page. For more information about things to consider when donating to organizations that have related public charity and social welfare entities, read "Sorting Out Nonprofit Pairs" in the Articles & Alerts section, below.] |
According to the Earthworks audit of December 31, 2022 (Note 4, Concentrations of Risk, Revenue Risk): "For the years ended December 31, 2022 and 2021, a substantial portion of Earthworks' revenue was generated from two donors in each year. The contributions totaled 28% and 34% of Earthworks' total revenue and support for the years ended December 31, 2022 and 2021, respectively. A potential reduction or change in funding from these donors in the future could significantly impact Earthworks' ability to carry out its current program activities."
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