Quick charity verification for Willow Lake Area Advancement (EIN: 204662248)
Verdict: Willow Lake Area Advancement appears trustworthy
70/100Mission Score
$265KRevenue
$33KAssets
3Red Flags
3Strengths
Red Flags
Significant deficit in 2023, with expenses ($74,070) far exceeding revenue ($46,147).
Dramatic decline in assets from $5,878 in 2022 to $1 in 2023.
High liabilities ($27,923) relative to assets ($1) in 2023, indicating potential insolvency.
Strengths
Consistent reporting of 0% officer compensation across all filings, indicating efficient use of funds for mission.
Long and consistent filing history with the IRS, demonstrating transparency.
NTEE code S32 suggests a direct focus on community development programs.
Spending Breakdown
How Willow Lake Area Advancement allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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 Willow Lake Area Advancement
Is Willow Lake Area Advancement a legitimate charity?
Based on AI analysis of IRS 990 filings, Willow Lake Area Advancement (EIN: 204662248) appears trustworthy. Mission Score: 70/100. 3 red flags identified, 3 strengths noted.
Is Willow Lake Area Advancement a good charity to donate to?
Willow Lake Area Advancement has a Mission Score of 70/100. Revenue: $265K. Assets: $33K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Willow Lake Area Advancement?
The Employer Identification Number (EIN) for Willow Lake Area Advancement is 204662248. 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 Willow Lake Area Advancement spend its money?
Willow Lake Area Advancement allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Willow Lake Area Advancement's tax-exempt status?
You can verify Willow Lake Area Advancement's tax-exempt status using EIN 204662248 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
Willow Lake Area Advancement demonstrates a fluctuating financial picture over its filing history. While the organization has maintained a consistent program focus with no reported officer compensation, its financial health shows some volatility. In 2023, the organization reported expenses exceeding revenue by over $27,000, leading to a negative net asset position and significant liabilities. This contrasts with earlier periods where assets were considerably higher, such as $109,983 in 2017. The recent decline in assets to just $1 in 2023, coupled with liabilities of $27,923, indicates potential financial strain.
The organization's spending efficiency is difficult to fully assess without a detailed breakdown of expenses beyond the summary data. However, the consistent reporting of 0% officer compensation suggests that administrative costs related to executive salaries are minimal, which is a positive indicator for donor funds being directed towards the mission. The lack of detailed expense categories in the provided data makes it challenging to precisely determine the proportion of spending on programs versus administrative or fundraising activities.
In terms of transparency, the organization has a consistent filing history with the IRS, which is a good practice. The absence of officer compensation is also a transparent aspect. However, the significant shift in asset levels and the recent deficit in 2023 warrant closer examination for potential donors or stakeholders to understand the underlying causes and the organization's plan for financial stability. The NTEE code S32 (Community Development Corporations) suggests a focus on local community improvement, which aligns with a direct program spending model.