Essex County Legal Aid Association
Essex County Legal Aid Association: Consistent Deficits, Low Reserves, and High Administrative Costs Raise Concerns
EIN: 221487177 · Newark, NJ · Updated: 2026-04-04
| Metric | Value |
|---|---|
| Total Revenue | $211K |
| Total Expenses | $171K |
| Program Spending | 55% |
| Net Assets | $55K |
| Transparency Score | 65/100 |
Is Essex County Legal Aid Association Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Essex County Legal Aid Association directs 55% of its spending to programs. This falls below the 65% benchmark. Donors may want to investigate further.
About Essex County Legal Aid Association
Essex County Legal Aid Association (EIN: 221487177) is a nonprofit organization based in Newark, NJ. The organization reported total revenue of $211K and total assets of $217K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Essex County Legal Aid Association's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Essex County Legal Aid Association is a small nonprofit that has been operating for 85 years, with 11 years of IRS 990 filings on record (2011–2021). Revenue has grown at a compound annual rate of -6.9%.
Key Financial Metrics (2021)
From the most recent IRS 990 filing on record:
| Total Revenue | $77K |
| Total Expenses | $171K |
| Surplus / Deficit | $-93,764 |
| Total Assets | $140K |
| Total Liabilities | $85K |
| Net Assets | $55K |
| Operating Margin | -121.2% |
| Debt-to-Asset Ratio | 60.7% |
| Months of Reserves | 9.8 months |
Financial Health Grade: C
In 2021, Essex County Legal Aid Association reported a deficit of $94K with expenses exceeding revenue, holds 9.8 months of operating reserves (strong position), has a debt-to-asset ratio of 60.7% (high leverage).
Financial Trends
Over 11 years of filings (2011–2021), Essex County Legal Aid Association's revenue has declined at a compound annual growth rate (CAGR) of -6.9%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2021 | -72.9% | +19.3% | -8.7% |
| 2020 | +104.5% | -17.0% | +1297.4% |
| 2019 | -31.8% | +6.4% | -75.2% |
| 2018 | +26.6% | +5.2% | +399.4% |
| 2017 | -21.9% | -20.8% | -79.7% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 1941 |
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 Essex County Legal Aid Association with a Mission Score of 65 out of 100 (Good). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 35%
- programs: 55%
- fundraising: 10%
According to IRS 990 filings, Essex County Legal Aid Association allocates its expenses as follows: admin: 35%, programs: 55%, fundraising: 10%. Approximately 55% goes to programs, indicating moderate mission focus.
Key Financial Metrics (2021)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $94K, with expenses exceeding revenue.
- Debt-to-asset ratio: 60.7%.
Executive Compensation Analysis
Executive compensation is not explicitly detailed in the provided data, making it impossible to assess its appropriateness relative to the organization's revenue and asset base.
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 Essex County Legal Aid Association's IRS 990 filings:
- Persistent operating deficits across multiple years (e.g., 2021 deficit of $93,764, 2019 deficit of $33,165) are unsustainable.
- Low net assets ($139,804 in 2021) combined with increasing liabilities ($84,901 in 2021) indicate a precarious financial position.
- The significant jump in liabilities from $4,500 in 2020 to $84,901 in 2021 warrants further investigation into its cause and implications.
Strengths
The following positive indicators were identified for Essex County Legal Aid Association:
- The organization has consistently provided legal aid services for over seven years, demonstrating a commitment to its mission.
- Despite financial challenges, the organization has maintained operations, suggesting resilience and dedicated leadership.
Frequently Asked Questions about Essex County Legal Aid Association
Is Essex County Legal Aid Association a legitimate charity?
Essex County Legal Aid Association (EIN: 221487177) is a registered tax-exempt nonprofit based in New Jersey. Our AI analysis gives it a Mission Score of 65/100. It has 11 years of IRS 990 filings on record. Total revenue: $211K. 3 red flags identified. 2 strengths noted. Financial health grade: C.
How does Essex County Legal Aid Association spend its money?
Essex County Legal Aid Association directs 55% of its spending to programs and services. Fundraising costs 10%. This falls below the 65% benchmark.
Are donations to Essex County Legal Aid Association tax-deductible?
Essex County Legal Aid Association is registered as a tax-exempt nonprofit (EIN: 221487177). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
What percentage of Essex County Legal Aid Association's spending goes to programs?
Essex County Legal Aid Association directs 55% to programs, 10% to fundraising. This falls below the 65% industry benchmark, which may warrant further review by donors.
Where is Essex County Legal Aid Association located?
Essex County Legal Aid Association is headquartered in Newark, New Jersey and files with the IRS under EIN 221487177.
How many years of IRS 990 filings does Essex County Legal Aid Association have?
Essex County Legal Aid Association has 11 years of IRS 990 filings on record at NonprofitSpending. This extensive filing history provides a strong basis for evaluating long-term financial trends. The most recent filing shows $211K in total revenue.
What does Essex County Legal Aid Association do?
Essex County Legal Aid Association is a nonprofit organization in the Unknown sector, located in Newark, New Jersey. It is classified under NTEE code Unknown.
How much revenue does Essex County Legal Aid Association have?
Essex County Legal Aid Association reported total revenue of $211,086. Based on 11 IRS 990 filings on record.
What are Essex County Legal Aid Association's total assets?
Essex County Legal Aid Association holds total assets of $217,441 as reported in IRS 990 filings.
Where is Essex County Legal Aid Association located?
Essex County Legal Aid Association is based in Newark, New Jersey.
What is Essex County Legal Aid Association's EIN?
Essex County Legal Aid Association's Employer Identification Number (EIN) is 221487177. This is the unique tax ID assigned by the IRS for tax-exempt organizations.
What type of nonprofit is Essex County Legal Aid Association?
Essex County Legal Aid Association is classified under NTEE code Unknown (Unknown).
Is Essex County Legal Aid Association a registered 501(c)(3)?
Essex County Legal Aid Association appears in IRS records (EIN: 221487177). Check the IRS Tax Exempt Organization Search for the most current determination letter status.
Does Essex County Legal Aid Association file IRS Form 990?
Yes, Essex County Legal Aid Association has 11 IRS Form 990 filings on record. The most recent covers tax period 202112.
What was Essex County Legal Aid Association's revenue in 2021?
In the 202112 filing period, Essex County Legal Aid Association reported total revenue of $77,367, total expenses of $171,131, and net assets of $139,804.
Is Essex County Legal Aid Association's revenue growing or declining?
Essex County Legal Aid Association's revenue is declining. Revenue went from $285,629 (202012) to $77,367 (202112), a -72.9% change. Based on 11 filings on record.
What is Essex County Legal Aid Association's most recent 990 filing?
The most recent IRS Form 990 filing for Essex County Legal Aid Association covers tax period 202112. It shows revenue of $77,367, expenses of $171,131, total assets of $139,804, and liabilities of $84,901.
How much does Essex County Legal Aid Association spend on programs vs administration?
Based on IRS 990 analysis, Essex County Legal Aid Association allocates approximately 55% of expenses to program services, 35% to administrative costs, and 10% to fundraising. Program spending is moderate relative to overhead.
Is Essex County Legal Aid Association a trustworthy charity?
Based on AI analysis of IRS 990 data, Essex County Legal Aid Association shows mixed signals. Mission Score: 65/100 (Good). 3 red flags identified. 2 strengths noted.
What are the red flags for Essex County Legal Aid Association?
The following concerns were identified: Persistent operating deficits across multiple years (e.g., 2021 deficit of $93,764, 2019 deficit of $33,165) are unsustainable.. Low net assets ($139,804 in 2021) combined with increasing liabilities ($84,901 in 2021) indicate a precarious financial position.. The significant jump in liabilities from $4,500 in 2020 to $84,901 in 2021 warrants further investigation into its cause and implications.. These flags are based on automated analysis of IRS 990 public filings and should be verified independently.
What are Essex County Legal Aid Association's strengths?
Positive indicators for Essex County Legal Aid Association include: The organization has consistently provided legal aid services for over seven years, demonstrating a commitment to its mission.. Despite financial challenges, the organization has maintained operations, suggesting resilience and dedicated leadership.. These findings are derived from AI analysis of the organization's financial filings.
How does Essex County Legal Aid Association compensate executives?
Executive compensation is not explicitly detailed in the provided data, making it impossible to assess its appropriateness relative to the organization's revenue and asset base. Executive compensation data is sourced from IRS 990 filings, which require disclosure of officer, director, and key employee pay.
Given the consistent operating deficits and increasing liabilities, what specific strategies are being implemented to achieve financial sustainability and rebuild reserves?
The provided data does not detail specific strategies, but the trend suggests a need for either increased revenue generation, significant cost reductions, or a combination of both to avoid future insolvency.
What is the nature of the substantial increase in liabilities from $4,500 in 2020 to $84,901 in 2021, and how does this impact the organization's ability to deliver services?
Without further information, the exact nature of this liability increase is unclear. It could represent deferred revenue, new debt, or other obligations, all of which could strain future cash flow and operational capacity.
Filing History
IRS 990 filing history for Essex County Legal Aid Association showing financial trends over 11 years of public records:
Over 11 years of IRS 990 filings (2011–2021), Essex County Legal Aid Association's revenue has declined by 51.3%, moving from $159K to $77K. Total assets increased by 378.1% over the same period, from $29K to $140K. Total functional expenses rose by 0.5%, from $170K to $171K. In its most recent filing year (2021), Essex County Legal Aid Association reported a deficit of $94K, with expenses exceeding revenue. The organization holds $85K in liabilities against $140K in assets (debt-to-asset ratio: 60.7%), resulting in net assets of $55K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2021 | $77K | $171K | $140K | $85K | — | View 990 |
| 2020 | $286K | $143K | $153K | $5K | — | View 990 |
| 2019 | $140K | $173K | $11K | $5K | — | View 990 |
| 2018 | $205K | $162K | $44K | $5K | — | View 990 |
| 2017 | $162K | $155K | $9K | $11K | — | View 990 |
| 2016 | $207K | $195K | $44K | $53K | — | View 990 |
| 2015 | $184K | $192K | $4K | $26K | — | View 990 |
| 2014 | $163K | $178K | $6K | $20K | — | View 990 |
| 2013 | $164K | $175K | $6K | $5K | — | View 990 |
| 2012 | $166K | $177K | $18K | $6K | — | View 990 |
| 2011 | $159K | $170K | $29K | $6K | — | View 990 |
Year-by-Year Financial Summary
- 2021: Revenue of $77K, expenses of $171K, and assets of $140K (revenue -72.9% year-over-year).
- 2020: Revenue of $286K, expenses of $143K, and assets of $153K (revenue +104.5% year-over-year).
- 2019: Revenue of $140K, expenses of $173K, and assets of $11K (revenue -31.8% year-over-year).
- 2018: Revenue of $205K, expenses of $162K, and assets of $44K (revenue +26.6% year-over-year).
- 2017: Revenue of $162K, expenses of $155K, and assets of $9K (revenue -21.9% year-over-year).
- 2016: Revenue of $207K, expenses of $195K, and assets of $44K (revenue +12.4% year-over-year).
- 2015: Revenue of $184K, expenses of $192K, and assets of $4K (revenue +13.0% year-over-year).
- 2014: Revenue of $163K, expenses of $178K, and assets of $6K (revenue -0.7% year-over-year).
- 2013: Revenue of $164K, expenses of $175K, and assets of $6K (revenue -1.0% year-over-year).
- 2012: Revenue of $166K, expenses of $177K, and assets of $18K (revenue +4.4% year-over-year).
- 2011: Revenue of $159K, expenses of $170K, and assets of $29K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Essex County Legal Aid Association:
Data Sources and Methodology
This transparency report for Essex County Legal Aid Association 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.