Quick charity verification for The Literacy Center (EIN: 222458322)
Verdict: The Literacy Center appears trustworthy
85/100Mission Score
$869KRevenue
$799KAssets
3Red Flags
3Strengths
Red Flags
The organization has consistently reported expenses exceeding revenue in recent years, with a deficit of $128,776 in 2023 and $192,373 in 2022.
Liabilities have significantly increased from $41,446 in 2022 to $320,184 in 2023, indicating potential financial strain or new debt.
Cash on hand (implied by assets minus liabilities) has decreased, raising concerns about liquidity.
Strengths
The Literacy Center has a long operational history, with financial data available back to 2016, suggesting stability and commitment to its mission.
Despite recent deficits, the organization consistently maintains substantial assets, with $799,104 in 2023.
The mission to promote literacy is clearly defined and addresses a vital community need.
Spending Breakdown
How The Literacy Center 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 The Literacy Center
Is The Literacy Center a legitimate charity?
Based on AI analysis of IRS 990 filings, The Literacy Center (EIN: 222458322) appears trustworthy. Mission Score: 85/100. 3 red flags identified, 3 strengths noted.
Is The Literacy Center a good charity to donate to?
The Literacy Center has a Mission Score of 85/100. Revenue: $869K. Assets: $799K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Literacy Center?
The Employer Identification Number (EIN) for The Literacy Center is 222458322. 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 The Literacy Center spend its money?
The Literacy Center allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Literacy Center's tax-exempt status?
You can verify The Literacy Center's tax-exempt status using EIN 222458322 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 Literacy Center is a education nonprofit based in Allentown, Pennsylvania, with reported revenue of $869K and assets of $799K. Our AI analysis assigns a Mission Score of 85/100 (Excellent). Approximately 75% of spending goes to programs, 15% to administration, and 10% to fundraising. Executive compensation is not explicitly detailed in the provided data, making a specific assessment difficult without further information on individual salaries. Revenue has grown +58% across 13 filing periods.