Quick charity verification for The Literacy Project (EIN: 205485155)
Verdict: The Literacy Project appears trustworthy
85/100Mission Score
$333KRevenue
$224KAssets
1Red Flags
4Strengths
Red Flags
Operating deficit in 2023 ($84,150), where expenses ($259,740) exceeded revenue ($175,590).
Strengths
Consistent 0% officer compensation reported across all three filings, indicating efficient use of funds.
Stable asset base, with assets of $223,800 and low liabilities.
Regular and transparent filing of IRS Form 990s.
Positive net income in 2021 and 2022, demonstrating past financial health.
Spending Breakdown
How The Literacy Project allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
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 The Literacy Project
Is The Literacy Project a legitimate charity?
Based on AI analysis of IRS 990 filings, The Literacy Project (EIN: 205485155) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is The Literacy Project a good charity to donate to?
The Literacy Project has a Mission Score of 85/100. Revenue: $333K. Assets: $224K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Literacy Project?
The Employer Identification Number (EIN) for The Literacy Project is 205485155. 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 Project spend its money?
The Literacy Project allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Literacy Project's tax-exempt status?
You can verify The Literacy Project's tax-exempt status using EIN 205485155 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 Project demonstrates a generally stable financial position with fluctuating but consistent revenue streams over the past three years. While the organization experienced a deficit in 2023, with expenses exceeding revenue by approximately $84,150, it maintained a healthy asset base of $166,449. The prior two years showed positive net income, indicating a capacity for financial management. The consistent reporting of 0% officer compensation across all three filings is a strong indicator of financial transparency and a commitment to directing funds towards its mission rather than executive salaries. This practice suggests a volunteer-driven leadership or very modest compensation not categorized as officer pay, which is commendable for a nonprofit of this size.
The organization's spending efficiency appears to be reasonable, especially given the absence of officer compensation. The focus on program delivery is likely high, though specific program spending ratios would provide a more detailed picture. The consistent filing of IRS Form 990s demonstrates a commitment to regulatory compliance and transparency, allowing public scrutiny of its financial activities. Overall, The Literacy Project appears to be a well-managed organization with a strong emphasis on its mission, supported by its financial reporting.