The Literacy Connection

Nonprofit profile at a glance

EIN
363576823
IRS 990 coverage
2011–2024
Forms available
Form 990 2024, Form 990-EZ 2023
Location
Elgin, IL, USA
Phone
8477426565
Rating
86
Verdict
STRONG
Rating confidence
Moderate
Sector
Remedial Reading, Reading Encouragement

Official website

Reported finances

Revenue
$220,633
Expenses
$261,120
Assets
$162,295
Liabilities
$3,866

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

Leadership & pay

8 people listed

Executive titles in this filing

  • COLLEEN STRIBLING (Vice President)
  • DAVID ESQUIVEL (President)

Highest reported compensation

  • MEGAN WHELESS (Executive Dir.): $62,500 total reported compensation

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

Overview

Mission

The Literacy Connection is a community-based organization helping adults learners in Elgin and the surrounding northwest suburban area acquire fundamental literacy skills.

What it reported doing in 2024

In this AVL program, we train volunteer literacy tutors to work one-on-one with Basic Literacy learners or English as a Second Language (ESL) learners. Our learners are adult men and women of all ages, nationalities, economic and social backgrounds, living in Northwest suburban Chicago.

Operating model

Revenue model
Grant-funded. 74% of the money available for current operations came from government grants.
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. Revenue has declined or grown slowly and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 94
  • Transparency & Controls: 86
  • Accountability: 95
  • Sustainability: 22
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 93%; rating input score 93
  • Fundraising efficiency: $29.02 raised per $1 spent on fundraising; rating input score 66; 66th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 22nd 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: 7 of 8 controls in place; rating input score 88
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -18.4%; rating input score 15; 15th percentile among comparable filings
  • Total-asset coverage ratio: 0.62; rating input score 29; 29th percentile among comparable filings
  • Liabilities to assets ratio: 0.02; rating input score 39; 39th percentile among comparable filings
  • Officer compensation ratio: 23.9%; rating input score 15; 15th percentile among comparable filings

Growth

  • Program expense growth: 7.2% per year; rating input score 100; 62nd percentile among comparable filings
  • Revenue growth: -9.2% per year; rating input score 0; 6th percentile among comparable filings
  • Asset growth: 4% per year; rating input score 100; 43rd percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 93% of spending went to programs
  • Governance: 7 of 7 board members independent · 7 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $243K in reported program spending
  • Leadership: top reported pay $62K · 8 people listed
  • Consistency: 21 of 22 current checks pass · 1 finding to review
  • Schedules: 4 filed schedules · includes major donors
  • Filing history: 7 filing years from 2011 to 2024
  • Contacts: How to reach this organization
  • Money network: 3 filed money-flow records
  • 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 — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Operating margin scored 15/100.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • High — Sustainability: Total-asset coverage ratio scored 29/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Sustainability: Officer compensation ratio scored 15/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 39/100.