Quick charity verification for Life Water Inc (EIN: 20809041)
Verdict: Life Water Inc appears trustworthy
92/100Mission Score
$145KRevenue
$367KAssets
0Red Flags
5Strengths
No red flags identified.
Strengths
Consistent revenue exceeding expenses, leading to surpluses in most years.
Significant asset growth from $24,694 in 2011 to $366,978 in 2021.
Zero reported liabilities across all filings, indicating a debt-free operation.
Zero reported officer compensation, suggesting high dedication of funds to mission.
Consistent filing of IRS Form 990s, demonstrating transparency.
Spending Breakdown
How Life Water Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
5%
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 Water Inc
Is Life Water Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Life Water Inc (EIN: 20809041) appears trustworthy. Mission Score: 92/100. 0 red flags identified, 5 strengths noted.
Is Life Water Inc a good charity to donate to?
Life Water Inc has a Mission Score of 92/100. Revenue: $145K. Assets: $367K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Life Water Inc?
The Employer Identification Number (EIN) for Life Water Inc is 20809041. 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 Water Inc spend its money?
Life Water Inc allocates 90% to programs, 5% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Life Water Inc's tax-exempt status?
You can verify Life Water Inc's tax-exempt status using EIN 20809041 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 Water Inc demonstrates consistent financial health, with revenues generally exceeding expenses over the past decade. In 2021, the organization reported revenue of $144,717 against expenses of $92,382, resulting in a surplus that contributed to asset growth. The organization's assets have steadily increased from $24,694 in 2011 to $366,978 in 2021, indicating sound financial management and accumulation of resources. A notable strength is the consistent reporting of zero liabilities across all available filings, suggesting a debt-free operation.
The organization's spending efficiency appears strong, particularly given the consistent surplus and asset growth. While a detailed breakdown of program, administrative, and fundraising expenses is not explicitly provided in the summary data, the overall financial picture suggests that the majority of funds are managed effectively to support the organization's mission. The absence of officer compensation reported in all filings is a significant indicator of efficiency and a potential commitment to directing funds towards programs.
Life Water Inc exhibits a high degree of transparency through its consistent filing of IRS Form 990s, with nine filings available. The consistent reporting of zero officer compensation and zero liabilities across all periods enhances trust and indicates a lean operational structure. This level of financial clarity, combined with healthy asset growth and revenue management, paints a positive picture of the organization's financial stewardship.