CharityWatch is unable to provide a rating for For The Troops (the Organization) based on its fiscal year ended 12/31/2024 due to the charity's small size. CharityWatch's inability to provide a rating for the Organization at this time does not imply a negative or positive evaluation. According to its fiscal 2024 IRS Form 990, the Organization raised $673,521 in cash contributions. Once donated care packages are subtracted from the charity's total reported 2024 expenses of $831,229, CharityWatch computed that For the Troops incurred less than $500,000 in cash expenses during 2024. The most recent letter grade rating of the Organization was a "F" on CharityWatch's A+ to F rating scale based on our analysis of its IRS Form 990 for the fiscal year ended December 31, 2022. For that year, CharityWatch found that the Organization spent only 36% of its cash budget on Programs and that it cost the charity $74 to raise each $100 in cash support. The Organization reports that it formed in 2006, according to its IRS tax Form 990. Also according to Form 990 reporting, it raised approximately $8.7 million in cash and in-kind contributions during the five-year period 2020 through 2024, which averages to approximately $1,750,000 annually (IRS Form 990, Schedule A, Part II, Section A). By comparison, the charity raised only about $1 million in cash and in-kind contributions in 2024, of which only $673,521 consisted of cash. The financial reporting of small charities is often not comparable to that of larger ones for several reasons, including Economies of Scale: Economies of Scale Economies of scale occur when the size of an organization's operations allow it to operate more efficiently. As an organization grows it costs it less (per unit) to produce its goods or services due to its overhead and other fixed costs being spread over a larger volume of output. For example, a small charity that serves 500 poor people per year may need to pay $8,000 for its annual financial audit. A larger charity that serves 3,000 poor people per year may need to pay $10,000 for its annual financial audit. The first charity spent $16 per person served for the overhead cost of its audit, while the second spent far less at only $3.33 per person served. Charity rating methods suitable for larger organizations often cannot be fairly applied to much smaller charities given that the latter lack the economies of scale necessary to operate at the same level of efficiency. |
