The Literacy Project
The Literacy Project shows stable assets and no officer compensation, despite a recent operating deficit.
EIN: 205485155 · Mount Rainier, MD · NTEE: A31 · Updated: 2026-03-28
Is The Literacy Project Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
The Literacy Project directs 80% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About The Literacy Project
The Literacy Project (EIN: 205485155) is a nonprofit organization based in Mount Rainier, MD, classified under NTEE code A31. The organization reported total revenue of $333K and total assets of $224K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of The Literacy Project's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
The Literacy Project is a small nonprofit that has been operating for 6 years, with 3 years of IRS 990 filings on record (2021–2023). Revenue has grown at a compound annual rate of -28.0%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $176K |
| Total Expenses | $260K |
| Surplus / Deficit | $-84,150 |
| Total Assets | $166K |
| Total Liabilities | $5K |
| Net Assets | $161K |
| Operating Margin | -47.9% |
| Debt-to-Asset Ratio | 3.2% |
| Months of Reserves | 7.7 months |
Financial Health Grade: B
In 2023, The Literacy Project reported a deficit of $84K with expenses exceeding revenue, holds 7.7 months of operating reserves (strong position), has a debt-to-asset ratio of 3.2% (very low leverage).
Financial Trends
Over 3 years of filings (2021–2023), The Literacy Project's revenue has declined at a compound annual growth rate (CAGR) of -28.0%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -16.5% | +42.4% | -34.0% |
| 2022 | -38.0% | +12.8% | +13.6% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1200 |
| IRS Ruling Date | 2020 |
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 The Literacy Project 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: 15%
- programs: 80%
- fundraising: 5%
According to IRS 990 filings, The Literacy Project allocates its expenses as follows: admin: 15%, programs: 80%, fundraising: 5%. With 80% directed toward programs, this reflects a strong commitment to its charitable mission.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $84K, with expenses exceeding revenue.
- Debt-to-asset ratio: 3.2%.
Executive Compensation Analysis
The Literacy Project reports 0% officer compensation across all three available filings, indicating that no salaries were paid to officers or that any compensation was minimal and not categorized as such. This is a strong positive for a nonprofit of its size, suggesting a high dedication to mission and efficient use of funds.
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 The Literacy Project's IRS 990 filings:
- Operating deficit in 2023 ($84,150), where expenses ($259,740) exceeded revenue ($175,590).
Strengths
The following positive indicators were identified for The Literacy Project:
- 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.
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) some concerns. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
How does The Literacy Project spend its money?
The Literacy Project directs 80% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to The Literacy Project tax-deductible?
The Literacy Project is registered as a tax-exempt nonprofit (EIN: 205485155). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is The Literacy Project a good charity?
Based on the available data, The Literacy Project appears to be a good charity. It consistently reports 0% officer compensation, indicating a strong commitment to its mission and efficient use of donor funds. Its assets are stable, and it maintains transparency through regular IRS 990 filings.
How has The Literacy Project's revenue trended?
The Literacy Project's revenue has fluctuated: $338,973 in 2021, $210,320 in 2022, and $175,590 in 2023. While there was a decline from 2021 to 2023, the latest reported revenue is $332,958, suggesting a potential rebound or a different reporting period for the 'latest revenue' figure.
What is the organization's financial stability?
The organization shows reasonable financial stability with assets of $223,800 and liabilities consistently low (e.g., $5,348 in 2023). While it experienced a deficit in 2023, its asset base remains healthy, and prior years showed positive net income.
Filing History
IRS 990 filing history for The Literacy Project showing financial trends over 3 years of public records:
Over 3 years of IRS 990 filings (2021–2023), The Literacy Project's revenue has declined by 48.2%, moving from $339K to $176K. Total assets decreased by 25% over the same period, from $222K to $166K. Total functional expenses rose by 60.6%, from $162K to $260K. In its most recent filing year (2023), The Literacy Project reported a deficit of $84K, with expenses exceeding revenue. The organization holds $5K in liabilities against $166K in assets (debt-to-asset ratio: 3.2%), resulting in net assets of $161K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $176K | $260K | $166K | $5K | — | — |
| 2022 | $210K | $182K | $252K | $7K | — | View 990 |
| 2021 | $339K | $162K | $222K | $4K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $176K, expenses of $260K, and assets of $166K (revenue -16.5% year-over-year).
- 2022: Revenue of $210K, expenses of $182K, and assets of $252K (revenue -38.0% year-over-year).
- 2021: Revenue of $339K, expenses of $162K, and assets of $222K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for The Literacy Project:
Data Sources and Methodology
This transparency report for The Literacy Project 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.