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Lake Area Improvement Corporation

EIN 51-0183368 · Madison, SD

Public records show a registered, tax-exempt organization in good standing.

LegitimacyPassesRegistration and standingFinancial healthWeak22 out of 100GovernanceStrong90 out of 100Impact evidenceDescribes programsHow well its results are evidenced

Points to look into

  • Only 6% of its spending went to programs.

These come from the organization's own tax return. There may be a good explanation; ask the charity.

What it says it does

TO ENHANCE THE QUALITY OF LIFE FOR ALL CITIZENS OF THE LAKE COUNTY AREA AND TO FACILITATE THE DEVELOPMENT AND RETENTION OF QUALITY JOBS THAT ARE ENVIRONMENTALLY AND ECONOMICALLY COMPATIBLE FOR LAKE COUNTY.

Income
$1.9 million
Spending
$8.0 million
Spent on programs
6%
Reserves
3.7 months of spending
Largest source of income
government grants, 77%
Employees
2
Volunteers
14
Highest pay
$168,057, executive di

Source: Form 990 for the year ending December 31, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Financial health

Weak: 22 out of 100. Higher than 2% of charities in its peer group (community improvement, $1m to $10m).

  • Reserves

    20 of 35

    Spendable reserves would cover 3.7 months of spending.

  • Debt

    2 of 20

    It owes 83% of what it owns.

  • Living within its means

    0 of 15

    Spending exceeded income by 325% of income.

  • Income trend

    0 of 15

    Income fell 73% on the year before.

  • Spending floor

    0 of 15

    6% of spending went to programs and raising each dollar of donations cost 1 cents.

Source: Form 990 for the year ending December 31, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Governance

Strong: 90 out of 100. Higher than 51% of charities in its peer group (community improvement, $1m to $10m).

  • Independent board

    25 of 25

    14 of 14 voting board members are independent.

  • Conflict of interest policy

    15 of 15

    Has a written conflict of interest policy.

  • Whistleblower policy

    8 of 8

    Has a written whistleblower policy.

  • Record keeping policy

    7 of 7

    Has a written policy on keeping and destroying records.

  • Board minutes

    5 of 5

    Keeps minutes of board meetings.

  • Board sees the tax return

    0 of 10

    Did not give the board a copy of this return before filing it.

  • Pay set independently

    5 of 5

    Sets its chief executive's pay through independent review and comparison.

  • Independent check of accounts

    15 of 15

    Its accounts were audited by an independent accountant.

  • No reported misuse

    10 of 10

    Reports no diversion of assets, excess benefits or loans to insiders.

Source: Form 990 for the year ending December 31, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Impact evidence

Describes programs. Its tax return describes what it does but we have found no measurable results in it.

Programs described in its return (1)
  1. $491,911 spent. IN 2025, MADISON AREA DEVELOPMENT CORPORATION (FORMERLY LAKE AREA IMPROVEMENT CORPORATION) CONTINUED ITS MISSION OF ADVANCING ECONOMIC DEVELOPMENT THROUGHOUT MADISON AND THE SURROUNDING REGION. A SIGNIFICANT MILESTONE WAS THE COMPLETION OF THE MADISON EARLY LEARNING CENTER, A 4.5 MILLION COMMUNITY INVESTMENT DEVELOPED IN PARTNERSHIP WITH EMBE TO HELP ADDRESS THE AREA'S CRITICAL CHILDCARE SHORTAGE. THE CENTER WELCOMED ITS FIRST FAMILIES AND BEGAN PROVIDING HIGH-QUALITY EARLY LEARNING OPPORTUNITIES, STRENGTHENING THE LOCAL WORKFORCE AND SUPPORTING LONG-TERM ECONOMIC GROWTH. MADC ALSO COMPLETED THE EXPANSION OF THE LAKEVIEW INDUSTRIAL PARK, ADDING APPROXIMATELY 50 ACRES OF SHOVEL-READY INDUSTRIAL LAND WITH NEW STREETS AND INFRASTRUCTURE TO SUPPORT FUTURE BUSINESS INVESTMENT AND JOB CREATION. THE ORGANIZATION ALSO INTRODUCED A NEW SOCIAL TO LEARN APPROACH TO ITS ENGLISH LANGUAGE LEARNING (ELL) PROGRAM IN PARTNERSHIP WITH THE MADISON PUBLIC LIBRARY. THIS COMMUNITY-BASED MODEL CREATES OPPORTUNITIES FOR PARTICIPANTS TO BUILD ENGLISH LANGUAGE SKILLS THROUGH CONVERSATION, RELATIONSHIP-BUILDING, AND REAL-WORLD INTERACTIONS, HELPING STRENGTHEN WORKFORCE INTEGRATION AND COMMUNITY CONNECTIONS. THE RELENDING PROGRAM CONTINUES TO PROVIDE FINANCING ASSISTANCE TO BUSINESSES, SUPPORTING BUSINESS EXPANSION, RETENTION, JOB CREATION, AND LONG-TERM ECONOMIC VITALITY THROUGHOUT THE REGION. IN 2025, MADISON AREA DEVELOPMENT CORPORATION (FORMERLY LAKE AREA IMPROVEMENT CORPORATION) CONTINUED ITS MISSION OF ADVANCING ECONOMIC DEVELOPMENT THROUGHOUT MADISON AND THE SURROUNDING REGION. A SIGNIFICANT MILESTONE WAS THE COMPLETION OF THE MADISON EARLY LEARNING CENTER, A 4.5 MILLION COMMUNITY INVESTMENT DEVELOPED IN PARTNERSHIP WITH EMBE TO HELP ADDRESS THE AREA'S CRITICAL CHILDCARE SHORTAGE. THE CENTER WELCOMED ITS FIRST FAMILIES AND BEGAN PROVIDING HIGH-QUALITY EARLY LEARNING OPPORTUNITIES, STRENGTHENING THE LOCAL WORKFORCE AND SUPPORTING LONG-TERM ECONOMIC GROWTH. MADC ALSO COMPLETED THE EXPANSION OF THE LAKEVIEW INDUSTRIAL PARK, ADDING APPROXIMATELY 50 ACRES OF SHOVEL-READY INDUSTRIAL LAND WITH NEW STREETS AND INFRASTRUCTURE TO SUPPORT FUTURE BUSINESS INVESTMENT AND JOB CREATION. THE ORGANIZATION ALSO INTRODUCED A NEW SOCIAL TO LEARN APPROACH TO ITS ENGLISH LANGUAGE LEARNING (ELL) PROGRAM IN PARTNERSHIP WITH THE MADISON PUBLIC LIBRARY. THIS COMMUNITY-BASED MODEL CREATES OPPORTUNITIES FOR PARTICIPANTS TO BUILD ENGLISH LANGUAGE SKILLS THROUGH CONVERSATION, RELATIONSHIP-BUILDING, AND REAL-WORLD INTERACTIONS, HELPING STRENGTHEN WORKFORCE INTEGRATION AND COMMUNITY CONNECTIONS. THE RELENDING PROGRAM CONTINUES TO PROVIDE FINANCING ASSISTANCE TO BUSINESSES, SUPPORTING BUSINESS EXPANSION, RETENTION, JOB CREATION, AND LONG-TERM ECONOMIC VITALITY THROUGHOUT THE REGION.

Source: Form 990 for the year ending December 31, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Legitimacy checks

  1. Is it registered with the IRS? Passed.

    Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  2. Has the IRS revoked its tax-exempt status? Passed.

    Not on the IRS automatic revocation list.

    Source: Automatic revocation of exemption list, Internal Revenue Service, file dated November 6, 2026.

  3. Are donations tax-deductible? Passed.

    On the IRS list of organizations eligible to receive tax-deductible contributions.

    Source: Publication 78 data: organizations eligible for tax-deductible contributions, Internal Revenue Service, file dated October 13, 2026.

  4. Is it keeping up with its IRS filings? Passed.

    Most recent return on file covers the year ending December 2025.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  5. How long has it been tax-exempt? Passed.

    Recognized by the IRS since October 1992.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  6. Is it in good standing with state regulators? Passed.

    Not on California's list of charities barred from soliciting. Other states are not yet checked.

    Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated November 4, 2026.

Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.