HeroBox

CharityWatch has analyzed the HeroBox IRS Form 990 for the fiscal year ended 12/31/2020 and has assigned HeroBox a "?" rating.

In its 2020 IRS Form 990, HeroBox responded "No" to the question: "Were the organization's financial statements audited by an independent accountant?" (Part XII, line 2b).

In its tax filings for 2012-2020, HeroBox reports that the accounting method it used to prepare its Form 990 was cash-basis, not accrual. With the exception of very small nonprofits, most charities report their financial activities on an accrual-basis. In simple terms, this means that expenses are reported when incurred, irrespective of when they are paid; and revenue is recognized when earned or pledged, irrespective of when cash happens to flow into a charity's bank account. Accrual-basis accounting is the method used for charity audited financial statements in order to comply with Generally Accepted Accounting Principles (GAAP) in the United States. The accrual method of accounting is favored because it provides a more complete picture of an organization's finances and is less susceptible to manipulation that could occur based on the timing of when cash deposits are made, or vendors paid. 

Given that HeroBox reported its financial activities in its 2020 IRS Form 990 on a cash-basis, and that it did not have an audit conducted of its 2020 financial activities, CharityWatch is unable to assign a letter grade rating to HeroBox. Therefore, we have assigned HeroBox a "?" rating for its fiscal year ended 12/31/2020.