Quick charity verification for Life Change Academy Inc (EIN: 205981950)
Verdict: Life Change Academy Inc shows mixed signals
45/100Mission Score
$124KRevenue
$0Assets
4Red Flags
2Strengths
Red Flags
Significant and recurring financial deficits, with expenses exceeding revenue in 5 out of 10 reported periods.
Sudden and unexplained drop in assets from $233,692 in 2019 to $0 in the latest 2020 filing.
Latest revenue of $124,286 is considerably lower than historical averages, indicating a potential decline in support or activity.
No assets reported in the latest filing, which raises concerns about financial stability and long-term viability.
Strengths
Consistent reporting with 10 IRS 990 filings available, indicating transparency.
0% officer compensation reported across all filings, demonstrating efficient use of funds regarding executive pay.
Spending Breakdown
How Life Change Academy 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 Life Change Academy Inc
Is Life Change Academy Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Life Change Academy Inc (EIN: 205981950) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
Is Life Change Academy Inc a good charity to donate to?
Life Change Academy Inc has a Mission Score of 45/100. Revenue: $124K. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Life Change Academy Inc?
The Employer Identification Number (EIN) for Life Change Academy Inc is 205981950. 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 Life Change Academy Inc spend its money?
Life Change Academy Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Life Change Academy Inc's tax-exempt status?
You can verify Life Change Academy Inc's tax-exempt status using EIN 205981950 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
Life Change Academy Inc. appears to be in a precarious financial position, as evidenced by its latest filing (Period 202012) showing expenses of $174,205 significantly exceeding revenue of $124,286, resulting in a deficit. This negative trend is concerning, especially when coupled with the reported $0 in assets for the same period, a sharp decline from $233,692 in assets in 201912. The organization has consistently spent more than it earned in recent years, with expenses exceeding revenue in 2020, 2019, 2017, 2016, and 2011. This pattern of operating at a deficit suggests potential long-term sustainability issues if not addressed.
The organization's transparency is generally good, with 10 filings available, indicating consistent reporting. However, the sudden disappearance of assets to $0 in the latest filing without a clear explanation in the provided data raises questions about asset management or potential restructuring. The consistent reporting of 0% officer compensation across all filings is a positive indicator regarding executive pay efficiency, suggesting resources are not being diverted to high salaries. However, without a detailed breakdown of expenses, it's difficult to fully assess spending efficiency beyond the overall deficit.
Overall, while the lack of executive compensation is a strength, the significant and recurring financial deficits, particularly the $0 asset figure in the most recent period, point to substantial financial health challenges. The organization needs to demonstrate a clear path to financial stability and asset rebuilding to ensure its long-term viability and impact.