Is Southwest Leadership Academy Legit? —…

Quick charity verification for Southwest Leadership Academy (EIN: 201804098)

Spending Breakdown

How Southwest Leadership Academy allocates its funds across programs, administration, and fundraising.

75%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

10%

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 Southwest Leadership Academy

Is Southwest Leadership Academy a legitimate charity?

Based on AI analysis of IRS 990 filings, Southwest Leadership Academy (EIN: 201804098) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.

Is Southwest Leadership Academy a good charity to donate to?

Southwest Leadership Academy has a Mission Score of 65/100. Revenue: $14.3M. Assets: $15.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Southwest Leadership Academy?

The Employer Identification Number (EIN) for Southwest Leadership Academy is 201804098. 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 Southwest Leadership Academy spend its money?

Southwest Leadership Academy allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Southwest Leadership Academy's tax-exempt status?

You can verify Southwest Leadership Academy's tax-exempt status using EIN 201804098 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

Southwest Leadership Academy demonstrates a consistent operational pattern, with revenues generally keeping pace with expenses over the past decade. For instance, in fiscal year 2023, the organization reported revenues of $10,972,225 against expenses of $13,623,867, indicating a deficit for that period. However, in 2022, revenues of $13,472,093 slightly exceeded expenses of $13,356,617. The organization's assets have shown significant growth, from $1,418,649 in 2013 to $11,517,705 in 2023, reflecting an expanding operational scale. Liabilities have also increased proportionally, reaching $12,241,177 in 2023, which is higher than its assets for that year, suggesting a reliance on debt or deferred revenue.

Spending efficiency appears to be a key area for further analysis, as the provided data does not break down expenses into program, administrative, and fundraising categories. Without this detailed breakdown, it's challenging to fully assess how efficiently funds are being directed towards its mission. The consistent reporting of 0% officer compensation across all filings is a notable aspect of its financial structure, indicating that top leadership may not be directly compensated through traditional salaries, or that compensation is reported differently. This could be a positive sign for resource allocation, but warrants further investigation into how leadership is supported.

Overall, Southwest Leadership Academy appears to be a growing organization with increasing financial activity. While its asset growth is positive, the fluctuating relationship between revenues and expenses, and the high liabilities in recent years, suggest a need for careful financial management. The lack of detailed spending breakdown in the provided data limits a comprehensive assessment of its spending efficiency and transparency regarding program delivery versus overhead.

Is Southwest Leadership Academy Legit?

Verdict: Southwest Leadership Academy shows mixed signals

Red Flags

Strengths