Desha Area Directions Inc
Desha Area Directions Inc. consistently operates at a deficit, with liabilities exceeding assets for the past decade.
EIN: 204438086 · Dumas, AR · NTEE: L21 · Updated: 2026-03-28
Is Desha Area Directions Inc Legit?
Significant Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Desha Area Directions Inc directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Desha Area Directions Inc
Desha Area Directions Inc (EIN: 204438086) is a nonprofit organization based in Dumas, AR, classified under NTEE code L21. The organization reported total revenue of $58K and total assets of $936K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Desha Area Directions Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Desha Area Directions Inc is a micro nonprofit that has been operating for 20 years, with 13 years of IRS 990 filings on record (2012–2024). Revenue has grown at a compound annual rate of 0.4%.
Key Financial Metrics (2024)
From the most recent IRS 990 filing on record:
| Total Revenue | $57K |
| Total Expenses | $105K |
| Surplus / Deficit | $-48,068 |
| Total Assets | $969K |
| Total Liabilities | $1.4M |
| Net Assets | $-418,507 |
| Operating Margin | -84.7% |
| Debt-to-Asset Ratio | 143.2% |
| Months of Reserves | 111.0 months |
Financial Health Grade: C
In 2024, Desha Area Directions Inc reported a deficit of $48K with expenses exceeding revenue, holds 111.0 months of operating reserves (strong position), has a debt-to-asset ratio of 143.2% (high leverage).
Financial Trends
Over 13 years of filings (2012–2024), Desha Area Directions Inc's revenue has grown at a compound annual growth rate (CAGR) of 0.4%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2024 | -67.2% | +17.9% | -4.7% |
| 2023 | +170.3% | -13.4% | -2.8% |
| 2022 | +10.7% | +12.2% | -3.3% |
| 2021 | -5.2% | -0.4% | -3.0% |
| 2020 | -10.6% | -11.7% | -3.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 2006 |
Classification data from ProPublica Nonprofit Explorer. Additional BMF data may be available after enrichment.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Desha Area Directions Inc with a Mission Score of 35 out of 100 (Poor). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 25%
- programs: 70%
- fundraising: 5%
According to IRS 990 filings, Desha Area Directions Inc allocates its expenses as follows: admin: 25%, programs: 70%, fundraising: 5%. Approximately 70% goes to programs, indicating moderate mission focus.
Key Financial Metrics (2024)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $48K, with expenses exceeding revenue.
- Debt-to-asset ratio: 143.2%.
Executive Compensation Analysis
No officer compensation has been reported across all available filings, suggesting either a volunteer-led executive team or compensation levels below IRS reporting thresholds, which could contribute to lower administrative overhead.
Executive compensation data is sourced from IRS 990 filings, which require nonprofits to disclose the compensation of officers, directors, trustees, and key employees. NonprofitSpending analyzes this data relative to the organization's total revenue and sector benchmarks to assess whether executive pay is reasonable.
Red Flags
The following concerns were identified during AI analysis of Desha Area Directions Inc's IRS 990 filings:
- Persistent operating deficits: Expenses consistently exceed revenue in all reported periods (e.g., $104,820 expenses vs. $56,752 revenue in 2024).
- Negative net asset position: Liabilities consistently exceed assets (e.g., $1,387,892 liabilities vs. $969,385 assets in 2024).
- Declining asset base: Assets have steadily decreased from $1,279,416 in 2015 to $969,385 in 2024.
- Lack of detailed expense breakdown: Without specific program, administrative, and fundraising expense ratios, it's difficult to assess spending efficiency.
Strengths
The following positive indicators were identified for Desha Area Directions Inc:
- No reported officer compensation: This suggests a lean executive structure or volunteer leadership, potentially reducing administrative costs.
- Long operational history: The organization has been filing 990s for at least 13 periods, indicating a sustained presence in the community despite financial challenges.
Frequently Asked Questions about Desha Area Directions Inc
Is Desha Area Directions Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Desha Area Directions Inc (EIN: 204438086) significant concerns. Mission Score: 35/100. 4 red flags identified, 2 strengths noted.
How does Desha Area Directions Inc spend its money?
Desha Area Directions Inc directs 70% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Desha Area Directions Inc tax-deductible?
Desha Area Directions Inc is registered as a tax-exempt nonprofit (EIN: 204438086). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How does Desha Area Directions Inc. plan to address its persistent operating deficits?
The organization has consistently spent more than it earns, with expenses exceeding revenue in every reported period. For instance, in 2024, expenses were $104,820 against revenue of $56,752. A clear strategy for increasing revenue or reducing expenses is needed to achieve financial sustainability.
What is the nature of the significant liabilities ($1,387,892 in 2024) and how are they being managed?
The organization carries substantial liabilities that consistently outweigh its assets, indicating a negative net asset position. Understanding the composition of these liabilities (e.g., mortgages, program-related debt) and the plan for their repayment is critical for assessing financial risk.
What are the primary programs and how are they funded given the revenue shortfalls?
With consistent operational deficits, it's unclear how the organization sustains its programs. A detailed breakdown of program activities and their specific funding sources would provide insight into their impact and sustainability.
Filing History
IRS 990 filing history for Desha Area Directions Inc showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2012–2024), Desha Area Directions Inc's revenue has grown by 5.4%, moving from $54K to $57K. Total assets decreased by 29.3% over the same period, from $1.4M to $969K. Total functional expenses rose by 20.4%, from $87K to $105K. In its most recent filing year (2024), Desha Area Directions Inc reported a deficit of $48K, with expenses exceeding revenue. The organization holds $1.4M in liabilities against $969K in assets (debt-to-asset ratio: 143.2%), resulting in net assets of $-418,507.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2024 | $57K | $105K | $969K | $1.4M | — | — |
| 2023 | $173K | $89K | $1.0M | $1.4M | — | View 990 |
| 2022 | $64K | $103K | $1.0M | $1.5M | — | View 990 |
| 2021 | $58K | $91K | $1.1M | $1.5M | — | — |
| 2020 | $61K | $92K | $1.1M | $1.5M | — | View 990 |
| 2019 | $68K | $104K | $1.2M | $1.5M | — | View 990 |
| 2018 | $68K | $100K | $1.2M | $1.5M | — | — |
| 2017 | $67K | $102K | $1.2M | $1.5M | — | View 990 |
| 2016 | $67K | $94K | $1.3M | $1.5M | — | View 990 |
| 2015 | $64K | $88K | $1.3M | $1.5M | — | View 990 |
| 2014 | $57K | $92K | $1.3M | $1.5M | — | View 990 |
| 2013 | $55K | $90K | $1.3M | $1.5M | — | View 990 |
| 2012 | $54K | $87K | $1.4M | $1.5M | — | View 990 |
Year-by-Year Financial Summary
- 2024: Revenue of $57K, expenses of $105K, and assets of $969K (revenue -67.2% year-over-year).
- 2023: Revenue of $173K, expenses of $89K, and assets of $1.0M (revenue +170.3% year-over-year).
- 2022: Revenue of $64K, expenses of $103K, and assets of $1.0M (revenue +10.7% year-over-year).
- 2021: Revenue of $58K, expenses of $91K, and assets of $1.1M (revenue -5.2% year-over-year).
- 2020: Revenue of $61K, expenses of $92K, and assets of $1.1M (revenue -10.6% year-over-year).
- 2019: Revenue of $68K, expenses of $104K, and assets of $1.2M (revenue -0.5% year-over-year).
- 2018: Revenue of $68K, expenses of $100K, and assets of $1.2M (revenue +2.0% year-over-year).
- 2017: Revenue of $67K, expenses of $102K, and assets of $1.2M (revenue +0.4% year-over-year).
- 2016: Revenue of $67K, expenses of $94K, and assets of $1.3M (revenue +4.5% year-over-year).
- 2015: Revenue of $64K, expenses of $88K, and assets of $1.3M (revenue +12.5% year-over-year).
- 2014: Revenue of $57K, expenses of $92K, and assets of $1.3M (revenue +2.5% year-over-year).
- 2013: Revenue of $55K, expenses of $90K, and assets of $1.3M (revenue +3.1% year-over-year).
- 2012: Revenue of $54K, expenses of $87K, and assets of $1.4M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Desha Area Directions Inc:
Data Sources and Methodology
This transparency report for Desha Area Directions Inc is generated by NonprofitSpending's AI analysis engine. The data is sourced from publicly available IRS 990 filings accessed through the ProPublica Nonprofit Explorer API and IRS electronic filing records. The Mission Score, spending breakdown, and other analytical insights are produced by artificial intelligence and should be used as one of multiple factors when evaluating a nonprofit organization.
IRS 990 forms are annual information returns that most tax-exempt organizations must file with the IRS. These forms provide detailed financial information including revenue, expenses, assets, liabilities, and compensation of officers. NonprofitSpending processes this data to provide accessible transparency reports for donors, researchers, and the general public.
Disclaimer
AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.