Quick charity verification for Gary Literacy Coalition Inc (EIN: 201323689)
Verdict: Gary Literacy Coalition Inc has notable concerns
30/100Mission Score
$123KRevenue
$1Assets
5Red Flags
2Strengths
Red Flags
Consistent operating deficits for the past three years (e.g., $160,514 expenses vs. $123,373 revenue in 202312).
Drastic decline in assets from $185,839 in 202012 to $1 in 202312.
Significant increase in liabilities to $57,642 in 202312, indicating potential unpaid obligations.
No reported officer compensation across all filings, which could be a transparency concern for an organization of this size.
Negative net assets (assets minus liabilities) in the latest filing (-$57,641).
Strengths
Long operating history with 13 filings.
Focus on a critical community need (literacy).
Spending Breakdown
How Gary Literacy Coalition Inc allocates its funds across programs, administration, and fundraising.
60%
Program Spending
Below average — room for improvement
30%
Admin Costs
High — over 25% on administration
10%
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 Gary Literacy Coalition Inc
Is Gary Literacy Coalition Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Gary Literacy Coalition Inc (EIN: 201323689) has notable concerns. Mission Score: 30/100. 5 red flags identified, 2 strengths noted.
Is Gary Literacy Coalition Inc a good charity to donate to?
Gary Literacy Coalition Inc has a Mission Score of 30/100. Revenue: $123K. Assets: $1. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Gary Literacy Coalition Inc?
The Employer Identification Number (EIN) for Gary Literacy Coalition Inc is 201323689. 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 Gary Literacy Coalition Inc spend its money?
Gary Literacy Coalition Inc allocates 60% to programs, 30% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Gary Literacy Coalition Inc's tax-exempt status?
You can verify Gary Literacy Coalition Inc's tax-exempt status using EIN 201323689 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
Gary Literacy Coalition Inc. exhibits significant financial instability and potential operational challenges. In the latest filing period (202312), the organization reported expenses of $160,514 against revenues of only $123,373, resulting in a deficit. This trend of expenses exceeding revenue is consistent over the past three years, with expenses of $169,541 against $59,036 in 202212 and $160,618 against $64,783 in 202112. The organization's assets have also drastically declined from $185,839 in 202012 to just $1 in the latest two periods, while liabilities have surged to $57,642 in 202312. This suggests a severe depletion of reserves and a reliance on debt or unpaid obligations.
The lack of reported officer compensation across all filings indicates either a fully volunteer-run leadership or that compensation is not being reported in a standard manner, which could impact transparency. The NTEE code B90 (Adult Education Programs) suggests a focus on literacy, but the financial data raises concerns about the sustainability of its programs given the consistent operating deficits and near-zero assets. The organization's ability to continue its mission effectively is questionable under current financial trends.