Quick charity verification for Lre Foundation (EIN: 204973856)
Verdict: Lre Foundation appears trustworthy
85/100Mission Score
$1.4MRevenue
$15.7MAssets
2Red Flags
4Strengths
Red Flags
Significant decline in revenue from $4.49 million in 2021 to $991,626 in 2023.
Operational deficits in recent years (e.g., expenses exceeded revenue by $69,694 in 2023 and $50,857 in 2022).
Strengths
Substantial and growing asset base, reaching over $15.5 million in 2023.
Consistently reports 0% officer compensation, indicating high efficiency in leadership costs.
Minimal liabilities reported across all filings, demonstrating strong financial management.
Consistent IRS 990 filing history over a decade, indicating good transparency and compliance.
Spending Breakdown
How Lre Foundation allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
0%
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 Lre Foundation
Is Lre Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Lre Foundation (EIN: 204973856) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is Lre Foundation a good charity to donate to?
Lre Foundation has a Mission Score of 85/100. Revenue: $1.4M. Assets: $15.7M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Lre Foundation?
The Employer Identification Number (EIN) for Lre Foundation is 204973856. 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 Lre Foundation spend its money?
Lre Foundation allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Lre Foundation's tax-exempt status?
You can verify Lre Foundation's tax-exempt status using EIN 204973856 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
Lre Foundation demonstrates a generally strong financial position with substantial assets relative to its annual expenses. While the organization experienced a significant drop in revenue from a peak of $4.49 million in 2021 to $991,626 in 2023, its asset base has remained robust, growing from $1.83 million in 2011 to over $15.5 million in 2023. The foundation consistently reports minimal liabilities, indicating sound financial management and low debt risk. The absence of reported officer compensation across all available filings suggests a high degree of volunteerism at the leadership level or that compensation is covered by an affiliated entity, which enhances its spending efficiency from a direct compensation perspective.
Spending efficiency appears high, as evidenced by the consistent reporting of 0% officer compensation. However, without a detailed breakdown of expenses beyond total expenses, it's challenging to fully assess the program spending ratio. The organization's expenses have fluctuated, reaching a high of $1.08 million in 2022 and $1.06 million in 2023, which are significant figures relative to its recent revenues, leading to operational deficits in these years. This trend of expenses exceeding revenue in recent years warrants closer examination to ensure long-term sustainability, especially given the decline in contributions.
Transparency is commendable regarding executive compensation, with 0% reported, which is a positive indicator. The consistent filing of IRS Form 990s over a decade also points to a commitment to regulatory compliance. However, the NTEE code T22 (Private Grantmaking Foundations) implies that the organization primarily makes grants, and a deeper dive into its grantmaking activities and the impact of those grants would further enhance transparency regarding its programmatic effectiveness.