Quick charity verification for Lafayette Square Area Coalition Inc (EIN: 204008623)
Verdict: Lafayette Square Area Coalition Inc appears trustworthy
85/100Mission Score
$871KRevenue
$1.6MAssets
1Red Flags
3Strengths
Red Flags
Significant unexplained asset decrease from $4,740,125 in 2019 to $1,075,860 in 2020.
Strengths
Consistent 0% officer compensation, indicating strong financial stewardship and dedication to mission.
Significant asset growth over the long term, from $9,564 in 2014 to $1,581,633 in 2023.
Positive net assets in most recent filing ($1,581,633 assets vs. $584,851 liabilities in 2023).
Spending Breakdown
How Lafayette Square Area Coalition Inc 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 Lafayette Square Area Coalition Inc
Is Lafayette Square Area Coalition Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Lafayette Square Area Coalition Inc (EIN: 204008623) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 3 strengths noted.
Is Lafayette Square Area Coalition Inc a good charity to donate to?
Lafayette Square Area Coalition Inc has a Mission Score of 85/100. Revenue: $871K. Assets: $1.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Lafayette Square Area Coalition Inc?
The Employer Identification Number (EIN) for Lafayette Square Area Coalition Inc is 204008623. 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 Square Area Coalition Inc spend its money?
Lafayette Square Area Coalition Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Lafayette Square Area Coalition Inc's tax-exempt status?
You can verify Lafayette Square Area Coalition Inc's tax-exempt status using EIN 204008623 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
Lafayette Square Area Coalition Inc demonstrates a fluctuating but generally positive financial trajectory, with recent revenue in 2023 at $648,658 and assets growing to $1,581,633. The organization has shown significant growth in assets over the past decade, from $9,564 in 2014 to over $1.5 million in 2023, indicating effective asset management or significant capital inflows. However, there was a notable drop in assets from $4,740,125 in 2019 to $1,075,860 in 2020, which warrants further investigation to understand the underlying cause, such as asset divestment or reclassification. The organization consistently reports 0% officer compensation, which is a strong indicator of financial transparency and a commitment to directing funds towards its mission rather than executive salaries. While the provided data does not detail program, administrative, and fundraising expenses, the consistent lack of officer compensation suggests a lean operational structure at the top.