Is Squam Lakes Association Legit?

Red Flags

Unusually low reported liabilities relative to assets (e.g., $63,029 liabilities vs. $11,184,522 assets in 2023), which could indicate conservative accounting or minimal debt, but also warrants a closer look at financial structure.
Consistent 0% officer compensation reported, which is highly atypical for an organization of this size and could mask executive benefits or compensation categorized elsewhere.

Strengths

Strong and consistent revenue growth, particularly in recent years (e.g., $1.2M in 2020 to $2.7M in 2023).
Significant and steady asset accumulation, indicating robust financial health and long-term stability (e.g., $7.6M in 2015 to $11.1M in 2023).
Consistent generation of substantial surpluses, with revenues significantly exceeding expenses (e.g., $2.7M revenue vs. $1.5M expenses in 2023).
Low liabilities relative to assets, suggesting minimal debt and strong financial management.
Consistent IRS 990 filings over 13 periods, demonstrating a commitment to transparency.

Spending Breakdown

How Squam Lakes Association allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

Admin Costs

Reasonable — admin costs in check

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 Squam Lakes Association

Is Squam Lakes Association a legitimate charity?

Based on AI analysis of IRS 990 filings, Squam Lakes Association (EIN: 20256498) appears trustworthy. Mission Score: 90/100. 2 red flags identified, 5 strengths noted.

Is Squam Lakes Association a good charity to donate to?

Squam Lakes Association has a Mission Score of 90/100. Revenue: $3.2M. Assets: $12.8M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Squam Lakes Association?

The Employer Identification Number (EIN) for Squam Lakes Association is 20256498. 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 Squam Lakes Association spend its money?

Squam Lakes Association allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Squam Lakes Association's tax-exempt status?

You can verify Squam Lakes Association's tax-exempt status using EIN 20256498 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

The Squam Lakes Association demonstrates strong financial health and growth, with its assets steadily increasing from $7.67 million in 2015 to $11.18 million in 2023. Revenue has also shown significant upward trends, particularly in recent years, jumping from $1.22 million in 2020 to $2.74 million in 2023. This growth indicates robust donor support and effective fundraising efforts. The organization consistently maintains a healthy surplus, with revenues significantly exceeding expenses in most periods, such as in 2023 where revenue was $2,735,430 against expenses of $1,507,670.

Spending efficiency appears to be very strong, as evidenced by the substantial surpluses generated. While specific program, administrative, and fundraising expense breakdowns are not provided in the summary data, the overall financial picture suggests that the organization is managing its resources effectively to achieve its mission. The consistent growth in assets and revenue, coupled with controlled expenses, points to a well-managed financial operation.

Transparency is positively impacted by the consistent filing of IRS 990 forms over 13 periods, indicating a commitment to public disclosure. A notable aspect of their financial management is the reported 0% officer compensation across all provided periods, which suggests that executive leadership may be volunteer-based or compensated through other means not categorized as 'Officer Comp' on these specific lines, or that the organization prioritizes directing funds to its mission rather than high executive salaries. This practice, if accurate, enhances the perception of financial integrity and donor trust.

Verdict: Squam Lakes Association appears trustworthy