Literacy Works

Nonprofit profile at a glance

EIN
364350749
IRS 990 coverage
2019–2024
Forms available
Form 990 2024
Location
Chicago, IL, USA
Phone
7733348255
Rating
84
Verdict
STRONG
Rating confidence
Moderate
Sector
Adult, Continuing Education

Official website

Reported finances

Revenue
$542,154
Expenses
$625,496
Assets
$600,146
Liabilities
$35,838

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

9 people listed

Executive titles in this filing

  • KELLY HALLBERG (PRESIDENT)
  • BRIGETTE CHAPUT (VICE PRESIDENT)
  • CHRISTINE KENNY (EXECUTIVE DIRECTOR)

Highest reported compensation

  • CHRISTINE KENNY (EXECUTIVE DIRECTOR): $81,900 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Literacy works provides training and consultation to adult literacy professionals and volunteer tutors, as well as training and consultation to professionals from mission-driven organizations across sectors on plain language practices.

What it reported doing in 2024

To prepare volunteers at adult education programs, we provide our 12-hour tutor essentials training in teaching english as a second language (esl) and adult basic education (abe). Tutors receive ongoing training and support through our robust ongoing training and learning opportunities which cover a wide variety of relevant topics.for adult literacy professionals, we offer training, networking and a variety of learning opportunities. We also offer customized training and program consultation services.for professional outside of the adult literacy field, we offer training and consultation on clear communication strategies.

Operating model

Revenue model
Donor-supported. 61% of the money available for current operations came from contributions and gifts.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Fundraising costs are high for each dollar raised and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 79
  • Transparency & Controls: 92
  • Accountability: 94
  • Sustainability: 27
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 91.1%; rating input score 91
  • Program expense ratio: 78.7%; rating input score 79
  • Fundraising efficiency: $4.54 raised per $1 spent on fundraising; rating input score 15; 15th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 88.9%; rating input score 89; 22nd percentile among comparable filings
  • Governance controls: 8 of 8 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -15.4%; rating input score 12; 12th percentile among comparable filings
  • Total-asset coverage ratio: 0.96; rating input score 41; 41st percentile among comparable filings
  • Liabilities to assets ratio: 0.06; rating input score 50; 50th percentile among comparable filings
  • Officer compensation ratio: 13.1%; rating input score 27; 27th percentile among comparable filings

Growth

  • Program expense growth: 17.4% per year; rating input score 100; 79th percentile among comparable filings
  • Revenue growth: 10.3% per year; rating input score 100; 67th percentile among comparable filings
  • Asset growth: 16.2% per year; rating input score 100; 75th percentile among comparable filings

Details

  • Where the money goes: 91.1% of revenue deployed · 78.7% of spending went to programs
  • Governance: 8 of 9 board members independent · 8 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $492K in reported program spending
  • Leadership: top reported pay $82K · 9 people listed
  • Consistency: 22 of 22 current checks pass
  • Schedules: 4 filed schedules · includes major donors
  • Filing history: 6 filing years from 2019 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Financial Efficiency: Fundraising efficiency scored 15/100.
  • High — Sustainability: Operating margin scored 12/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 41/100.
  • High — Sustainability: Officer compensation ratio scored 27/100.
  • Review — Sustainability: Liabilities to assets ratio scored 50/100.