The Literacy Alliance Inc

Nonprofit profile at a glance

EIN
351710780
IRS 990 coverage
2019–2024
Forms available
Form 990 2024
Location
Fort Wayne, IN, USA
Phone
2604267323
Rating
86
Verdict
STRONG
Rating confidence
Moderate
Sector
Remedial Reading, Reading Encouragement

Reported finances

Revenue
$1,559,033
Expenses
$1,472,052
Assets
$945,345
Liabilities
$110,115

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

Leadership & pay

17 people listed

Executive titles in this filing

  • MELINDA HAINES (CEO)

Highest reported compensation

  • MELINDA HAINES (CEO): $107,240 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 changes lives. Our mission is to empower people and strengthen community through education. In support of its mission, the literacy alliance serves adults through free instruction in adult basic education skills, high school equivalency preparation, and english language learning. Tla serves k-3 school children by providing tutors who help students achieve grade-level reading goals. The literacy alliance collaborates with local schools and community organizations to provide on-site instruction and mutual referrals. Tla also places a family library in each new habitat for humanity home at the time of dedication. Volunteers are an essential part of the instruction team in all program areas.

What it reported doing in 2024

The literacy alliance began operating project reads in fy 21-22. Project reads serves k-3 students to help them attain grade-level reading. All other programs serve adults by offering adult basic education in reading, writing and math under the guidance of teachers, site coordinators and volunteer tutors. Project build assists in basic skill building. Project graduate offers high school equivalency preparation. Project connect offers english language learning. All programs are free of cost to students. In 2024-25, 614 total students were served. Staff was assisted by 193 volunteers providing 5,502 hours of service.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
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.
  • Includes noncash contributions: Reported contributions include donated property or goods.

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: 77
  • Transparency & Controls: 92
  • Accountability: 100
  • Sustainability: 43
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 79%; rating input score 79
  • Program expense ratio: 84.1%; rating input score 84
  • Fundraising efficiency: $11.95 raised per $1 spent on fundraising; rating input score 44; 44th 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: 100%; rating input score 100; 63rd 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: 5.6%; rating input score 51; 51st percentile among comparable filings
  • Total-asset coverage ratio: 0.64; rating input score 30; 30th percentile among comparable filings
  • Liabilities to assets ratio: 0.12; rating input score 40; 40th percentile among comparable filings
  • Officer compensation ratio: 7.3%; rating input score 46; 46th percentile among comparable filings

Growth

  • Program expense growth: 18.3% per year; rating input score 100; 80th percentile among comparable filings
  • Revenue growth: 14.2% per year; rating input score 100; 77th percentile among comparable filings
  • Asset growth: 3.6% per year; rating input score 100; 32nd percentile among comparable filings

Details

  • Where the money goes: 79% of revenue deployed · 84.1% of spending went to programs
  • Governance: 16 of 16 board members independent · 8 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $1.2M in reported program spending
  • Leadership: top reported pay $107K · 17 people listed
  • Consistency: 34 of 34 current checks pass
  • Schedules: 5 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
  • Related organizations: Filed and resolved organization relationships.
  • 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

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

  • Moderate — Financial Efficiency: Fundraising efficiency scored 44/100.
  • Review — Sustainability: Operating margin scored 51/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 30/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 40/100.
  • Moderate — Sustainability: Officer compensation ratio scored 46/100.