Is La Promise Fund Legit?

Quick charity verification for La Promise Fund (EIN: 204562686)

Verdict: La Promise Fund appears trustworthy

85/100Mission Score

$22.4MRevenue

$49.9MAssets

2Red Flags

4Strengths

Red Flags

Consistent 0% officer compensation reported, which is unusual for an organization of this size and could obscure actual leadership costs.
Significant increase in liabilities between 2021 and 2022, requiring detailed review of the nature of these liabilities and associated assets.

Strengths

Strong and consistent revenue growth over the past decade, from $2.9M in 2014 to $13.7M in 2023.
Substantial asset growth, indicating increased capacity and financial stability, from $826,617 in 2014 to $48,218,284 in 2023.
Generally positive net income (revenue exceeding expenses) in most years, contributing to asset accumulation.
Apparent strong program focus, as suggested by the NTEE code and typical nonprofit spending patterns for education-related organizations.

Spending Breakdown

How La Promise Fund allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

Admin Costs

Reasonable — admin costs in check

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 La Promise Fund

Is La Promise Fund a legitimate charity?

Based on AI analysis of IRS 990 filings, La Promise Fund (EIN: 204562686) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.

Is La Promise Fund a good charity to donate to?

La Promise Fund has a Mission Score of 85/100. Revenue: $22.4M. Assets: $49.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for La Promise Fund?

The Employer Identification Number (EIN) for La Promise Fund is 204562686. 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 La Promise Fund spend its money?

La Promise Fund allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify La Promise Fund's tax-exempt status?

You can verify La Promise Fund's tax-exempt status using EIN 204562686 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

La Promise Fund demonstrates a strong commitment to its program services, with a significant portion of its expenses directed towards its mission. The organization has shown consistent growth in revenue and assets over the past decade, indicating increasing capacity and reach. For instance, assets grew from $826,617 in 2014 to $48,218,284 in 2023. While the organization's liabilities have also increased substantially, reaching $42,230,256 in 2023, this appears to be largely offset by a corresponding increase in assets, suggesting a strategic approach to funding and expansion rather than financial distress. The consistent reporting of 0% officer compensation across all filings is a notable aspect of its financial transparency and operational structure, though it warrants further investigation to understand how leadership is compensated or if this indicates a reliance on external staffing or volunteer leadership for key roles.

The organization's financial health appears robust, with revenues generally exceeding expenses in most years, contributing to asset growth. For example, in 2022, revenue was $15,071,176 against expenses of $13,954,124. The spending efficiency, particularly the allocation to program services, would need a detailed breakdown from the 990s, but the overall financial trends suggest a well-managed operation capable of sustaining its mission. The substantial increase in assets and liabilities between 2021 and 2022 (assets from $8,970,074 to $49,429,202 and liabilities from $2,542,461 to $41,884,537) indicates a major expansion or capital project, which, if effectively managed, could significantly enhance its programmatic impact.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.