Recurring deficits where expenses exceed revenue (e.g., 202312, 201612, 201412), which could strain reserves if not managed.
Lack of detailed expense breakdown (program, admin, fundraising) in provided data makes precise spending efficiency analysis challenging.
Strengths
Consistent 0% reported officer compensation across all filings, indicating highly efficient leadership costs.
Stable and growing asset base, reaching $569,676, providing financial resilience.
Consistent IRS 990 filing history (13 filings), demonstrating transparency and accountability.
Relatively low liabilities in most years, suggesting sound financial management.
Spending Breakdown
How Diversity Leadership Alliance allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
Admin Costs
Reasonable — admin costs in check
5%
Fundraising
Within typical range
How to read this: Well-run charities typically spend 75% or more on programs, keep admin under 25%, and fundraising under 15%. A high program ratio means more of every dollar goes directly to the mission.
How to Interpret This Report
What Red Flags Mean
Red flags are potential warning signs identified by AI analysis of IRS 990 filings. They may indicate issues like declining revenue, high executive pay relative to program spending, lack of transparency, or governance concerns. A single red flag does not necessarily mean an organization is untrustworthy, but multiple flags warrant further investigation before donating.
What Mission Score Measures
The Mission Score (0-100) evaluates how effectively a nonprofit fulfills its stated purpose. It combines multiple factors: program spending efficiency (how much goes to programs vs. overhead), financial health and sustainability, governance quality, transparency in reporting, and consistency of operations over time. A score of 70+ indicates strong alignment with the organization’s mission.
Using This Data for Donation Decisions
Use this report as one input in your decision. Look at the overall Mission Score for a quick assessment, review red flags and strengths for specific concerns, check the spending breakdown to see where money goes, and compare executive compensation to the organization’s size. Consider viewing the full transparency report for deeper analysis, and always verify tax-exempt status with the IRS before making large donations.
Frequently Asked Questions about Diversity Leadership Alliance
Is Diversity Leadership Alliance a legitimate charity?
Based on AI analysis of IRS 990 filings, Diversity Leadership Alliance (EIN: 202260284) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is Diversity Leadership Alliance a good charity to donate to?
Diversity Leadership Alliance has a Mission Score of 85/100. Revenue: $141K. Assets: $570K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Diversity Leadership Alliance?
The Employer Identification Number (EIN) for Diversity Leadership Alliance is 202260284. This is the unique tax ID assigned by the IRS.
What is a Mission Score?
The Mission Score is a 0-100 rating that measures how effectively a nonprofit fulfills its stated mission. It factors in program spending efficiency, financial transparency, governance practices, and outcome reporting. Scores above 70 indicate strong mission alignment, 40-69 suggest mixed performance, and below 40 signals potential concerns.
How does Diversity Leadership Alliance spend its money?
Diversity Leadership Alliance allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Diversity Leadership Alliance's tax-exempt status?
You can verify Diversity Leadership Alliance's tax-exempt status using EIN 202260284 on the IRS Tax Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. You can also request copies of their Form 990 directly from the organization, as they are required by law to provide them upon request.
AI Transparency Report
Diversity Leadership Alliance demonstrates consistent financial activity, with annual revenues generally ranging between $130,000 and $220,000 over the past decade. The organization's assets have shown steady growth, reaching $569,676 in the latest period, indicating a stable financial foundation. However, the most recent filing (202312) shows expenses of $184,195 exceeding revenue of $138,974, resulting in a deficit for that year. This trend of expenses occasionally surpassing revenue has occurred in several past periods (e.g., 201612, 201412), suggesting a need for careful monitoring of operational costs relative to income.
The organization's transparency is bolstered by its consistent filing of IRS Form 990s, with 13 filings available. A significant positive aspect is the reported 0% officer compensation across all available filings, which suggests that executive leadership is either volunteer-based or compensated through other means not categorized as officer compensation, potentially indicating a high degree of dedication to the mission and efficient use of funds. The relatively low liabilities reported in most years also point to sound financial management.
While the organization maintains a healthy asset base, the recurring instances of expenses exceeding revenue warrant attention to ensure long-term sustainability without drawing down reserves excessively. The absence of reported officer compensation is a strong indicator of financial efficiency and a commitment to directing funds towards programmatic activities, though a detailed breakdown of program, administrative, and fundraising expenses would provide a clearer picture of spending efficiency.