Is Lafayette River Foundation Legit? —…

Red Flags

Significant revenue volatility, with annual revenue ranging from $358,438 to $10,866,863 over the past decade, making consistent financial planning challenging.
Expenses frequently exceed revenue in recent years (e.g., 2023, 2022, 2020), indicating reliance on reserves or prior surpluses for operations.
Lack of detailed expense breakdown (program, admin, fundraising) in the provided data prevents a precise assessment of spending efficiency.

Strengths

Maintains a very strong asset base, currently $14,527,779, providing significant financial stability.
Consistently reports extremely low liabilities ($1 across all filings), indicating excellent financial management and minimal debt.
Reports 0% officer compensation across all filings, suggesting high transparency regarding executive pay or a volunteer-driven leadership model.
Long operational history with 10 filings, demonstrating sustained commitment to its mission.

Spending Breakdown

How Lafayette River Foundation allocates its funds across programs, administration, and fundraising.

75%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Lafayette River Foundation

Is Lafayette River Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Lafayette River Foundation (EIN: 20729969) appears trustworthy. Mission Score: 85/100. 3 red flags identified, 4 strengths noted.

Is Lafayette River Foundation a good charity to donate to?

Lafayette River Foundation has a Mission Score of 85/100. Revenue: $5.6M. Assets: $14.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Lafayette River Foundation?

The Employer Identification Number (EIN) for Lafayette River Foundation is 20729969. 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 Lafayette River Foundation spend its money?

Lafayette River Foundation allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Lafayette River Foundation's tax-exempt status?

You can verify Lafayette River Foundation's tax-exempt status using EIN 20729969 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

The Lafayette River Foundation demonstrates a consistent commitment to its mission, as evidenced by its stable asset base and low liabilities across multiple years. While revenue has fluctuated significantly, from a high of $10,866,863 in 2015 to $358,438 in 2022, the organization has maintained substantial assets, currently at $14,527,779. This suggests a strong financial foundation, likely built on endowments or long-term investments, which provides stability despite varying annual income. The consistent reporting of zero officer compensation across all available filings indicates a high degree of transparency regarding executive pay and a potential reliance on volunteer leadership or a structure where top leadership is compensated through other means not categorized as 'officer compensation' on the 990, which warrants further investigation for a complete picture.

Spending efficiency appears to be a mixed bag. In several recent years (e.g., 2023, 2022, 2020), expenses have exceeded revenue, indicating the organization is drawing from its reserves or prior year surpluses. For instance, in 2023, expenses were $1,085,439 against revenues of $857,783. However, in 2021, revenue significantly outpaced expenses ($1,227,305 vs. $906,160), demonstrating periods of strong financial performance. The lack of detailed expense breakdowns (program, administrative, fundraising) in the provided data makes a precise assessment of spending efficiency challenging. However, the consistent low liabilities ($1) across all filings is a strong indicator of sound financial management and a lack of significant debt, contributing positively to its overall financial health.

Is Lafayette River Foundation Legit?

Verdict: Lafayette River Foundation appears trustworthy