Lakes International Language Academy
Lakes International Language Academy shows strong program spending and revenue growth, but consistently reports liabilities exceeding assets.
EIN: 200393839 · Forest Lake, MN · NTEE: B29 · Updated: 2026-03-28
Is Lakes International Language Academy Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Lakes International Language Academy directs 95% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Lakes International Language Academy
Lakes International Language Academy (EIN: 200393839) is a nonprofit organization based in Forest Lake, MN, classified under NTEE code B29. The organization reported total revenue of $19.2M and total assets of $11.8M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Lakes International Language Academy's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Lakes International Language Academy with a Mission Score of 85 out of 100 (Excellent). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 4%
- programs: 95%
- fundraising: 1%
According to IRS 990 filings, Lakes International Language Academy allocates its expenses as follows: admin: 4%, programs: 95%, fundraising: 1%. With 95% directed toward programs, this reflects a strong commitment to its charitable mission.
Executive Compensation Analysis
The organization consistently reports 0% officer compensation across all available filings, suggesting that executive leadership either serves without direct compensation from the organization or their compensation is categorized differently, which is a positive indicator for resource allocation directly to mission-related activities.
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 Lakes International Language Academy's IRS 990 filings:
- Consistent negative net assets (liabilities exceeding assets) across multiple years, e.g., $14,844,103 liabilities vs. $12,726,091 assets in 202306.
- Unclear executive compensation structure given 0% reported officer compensation for an organization with nearly $20M in revenue.
Strengths
The following positive indicators were identified for Lakes International Language Academy:
- Strong and consistent revenue growth, increasing from $6.1M in 2014 to $19.1M currently.
- High proportion of spending dedicated to program services, with expenses closely tracking revenue.
- Consistent IRS 990 filing history, indicating good transparency and compliance.
- No reported officer compensation, suggesting resources are directed away from executive salaries.
Frequently Asked Questions about Lakes International Language Academy
Is Lakes International Language Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Lakes International Language Academy (EIN: 200393839) some concerns. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
How does Lakes International Language Academy spend its money?
Lakes International Language Academy directs 95% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Lakes International Language Academy tax-deductible?
Lakes International Language Academy is registered as a tax-exempt nonprofit (EIN: 200393839). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is Lakes International Language Academy financially stable despite liabilities exceeding assets?
While liabilities consistently exceed assets, the organization's strong and consistent revenue growth (from $6.1M in 2014 to $19.1M currently) and efficient spending (expenses closely track revenue) suggest operational stability and an ability to manage its obligations.
How does Lakes International Language Academy fund its operations without officer compensation?
The 0% officer compensation reported indicates that either executive roles are volunteer-based, or compensation for key management is not classified under 'officer compensation' in the 990 filings, which is unusual for an organization of this size and warrants further inquiry into their operational structure.
What is the trend in the organization's net assets?
Net assets (Assets - Liabilities) have been consistently negative, for example, -$2,118,012 in 202306. This trend has persisted over several years, indicating a long-term reliance on debt or other obligations to finance operations and assets.
Filing History
IRS 990 filing history for Lakes International Language Academy showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Lakes International Language Academy's revenue has grown by 276.3%, moving from $4.9M to $18.4M. Total assets increased by 391.1% over the same period, from $2.6M to $12.7M. Total functional expenses rose by 270.9%, from $4.8M to $17.7M. In its most recent filing year (2023), Lakes International Language Academy reported a surplus of $698K, with revenue exceeding expenses. The organization holds $14.8M in liabilities against $12.7M in assets (debt-to-asset ratio: 116.6%), resulting in net assets of $-2,118,012.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. | |
|---|---|---|---|---|---|---|
| 2023 | $18.4M | $17.7M | $12.7M | $14.8M | — | View 990 |
| 2022 | $17.6M | $17.5M | $12.9M | $15.9M | — | View 990 |
| 2021 | $15.7M | $16.0M | $12.2M | $15.2M | — | — |
| 2020 | $15.2M | $14.1M | $12.8M | $14.9M | — | View 990 |
| 2019 | $12.6M | $12.1M | $13.0M | $15.1M | — | View 990 |
| 2018 | $11.5M | $10.9M | $13.5M | $17.6M | — | View 990 |
| 2017 | $10.3M | $9.8M | $13.6M | $15.8M | — | View 990 |
| 2016 | $8.7M | $8.6M | $3.9M | $4.7M | — | View 990 |
| 2015 | $7.0M | $7.0M | $3.8M | $4.6M | — | View 990 |
| 2014 | $6.1M | $6.4M | $2.6M | $130K | — | View 990 |
| 2013 | $5.7M | $5.5M | $2.9M | $181K | — | View 990 |
| 2012 | $5.3M | $5.0M | $2.8M | $164K | — | View 990 |
| 2011 | $4.9M | $4.8M | $2.6M | $205K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $18.4M, expenses of $17.7M, and assets of $12.7M (revenue +4.4% year-over-year).
- 2022: Revenue of $17.6M, expenses of $17.5M, and assets of $12.9M (revenue +11.6% year-over-year).
- 2021: Revenue of $15.7M, expenses of $16.0M, and assets of $12.2M (revenue +3.6% year-over-year).
- 2020: Revenue of $15.2M, expenses of $14.1M, and assets of $12.8M (revenue +20.9% year-over-year).
- 2019: Revenue of $12.6M, expenses of $12.1M, and assets of $13.0M (revenue +9.6% year-over-year).
- 2018: Revenue of $11.5M, expenses of $10.9M, and assets of $13.5M (revenue +11.3% year-over-year).
- 2017: Revenue of $10.3M, expenses of $9.8M, and assets of $13.6M (revenue +18.7% year-over-year).
- 2016: Revenue of $8.7M, expenses of $8.6M, and assets of $3.9M (revenue +23.9% year-over-year).
- 2015: Revenue of $7.0M, expenses of $7.0M, and assets of $3.8M (revenue +14.9% year-over-year).
- 2014: Revenue of $6.1M, expenses of $6.4M, and assets of $2.6M (revenue +6.6% year-over-year).
- 2013: Revenue of $5.7M, expenses of $5.5M, and assets of $2.9M (revenue +9.0% year-over-year).
- 2012: Revenue of $5.3M, expenses of $5.0M, and assets of $2.8M (revenue +7.7% year-over-year).
- 2011: Revenue of $4.9M, expenses of $4.8M, and assets of $2.6M.
Data Sources and Methodology
This transparency report for Lakes International Language Academy 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.