Quick charity verification for Lakes International Language Academy (EIN: 200393839)
Verdict: Lakes International Language Academy appears trustworthy
85/100Mission Score
$19.2MRevenue
$11.8MAssets
2Red Flags
4Strengths
Red Flags
Consistent negative net assets (liabilities exceeding assets) across multiple years, e.g., $14,844,103 liabilities vs. $12,726,091 assets in 202306.
Unclear executive compensation structure given 0% reported officer compensation for an organization with nearly $20M in revenue.
Strengths
Strong and consistent revenue growth, increasing from $6.1M in 2014 to $19.1M currently.
High proportion of spending dedicated to program services, with expenses closely tracking revenue.
Consistent IRS 990 filing history, indicating good transparency and compliance.
No reported officer compensation, suggesting resources are directed away from executive salaries.
Spending Breakdown
How Lakes International Language Academy allocates its funds across programs, administration, and fundraising.
95%
Program Spending
Healthy — majority goes to mission
4%
Admin Costs
Reasonable — admin costs in check
1%
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 Lakes International Language Academy
Is Lakes International Language Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Lakes International Language Academy (EIN: 200393839) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is Lakes International Language Academy a good charity to donate to?
Lakes International Language Academy has a Mission Score of 85/100. Revenue: $19.2M. Assets: $11.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Lakes International Language Academy?
The Employer Identification Number (EIN) for Lakes International Language Academy is 200393839. 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 Lakes International Language Academy spend its money?
Lakes International Language Academy allocates 95% to programs, 4% to administration, and 1% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Lakes International Language Academy's tax-exempt status?
You can verify Lakes International Language Academy's tax-exempt status using EIN 200393839 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
Lakes International Language Academy (LILA) demonstrates consistent financial growth, with revenue increasing from $6.1 million in 2014 to over $19.1 million currently. The organization consistently spends a high proportion of its budget on program services, as evidenced by the close alignment of expenses to revenue across all reported periods, indicating efficient use of funds directly for its educational mission. For instance, in the 202306 period, expenses were $17,654,729 against revenues of $18,352,789, showing a strong commitment to program delivery.
However, a notable concern is the consistent reporting of liabilities exceeding assets, particularly in recent years. For example, in 202306, liabilities were $14,844,103 compared to assets of $12,726,091, suggesting a reliance on debt or other obligations. While this is not uncommon for educational institutions with significant infrastructure, it warrants closer examination. The organization's transparency is bolstered by its consistent filing history and the explicit reporting of 0% officer compensation, which indicates that top executives are not drawing salaries from the organization, or their compensation is not reported in this category.
Overall, LILA appears to be a financially stable and program-focused organization, effectively growing its operations to serve its mission. The primary area for further scrutiny would be the long-term implications of its asset-to-liability ratio, though its consistent revenue growth and operational efficiency suggest it is managing these obligations effectively.