Quick charity verification for Chai Preschool Inc (EIN: 204801654)
Verdict: Chai Preschool Inc appears trustworthy
92/100Mission Score
$2.4MRevenue
$689KAssets
2Red Flags
5Strengths
Red Flags
Lack of detailed expense breakdown (program vs. admin vs. fundraising) in provided summary, requiring deeper dive into full 990s for precise ratios.
Unusually consistent 0% officer compensation for an organization of this scale, which might warrant further investigation into how leadership is compensated or structured.
Strengths
Strong program spending, with expenses consistently close to revenue across multiple years (e.g., $1,941,376 expenses vs. $1,998,142 revenue in 202406).
Significant asset growth over time, from $342,043 in 201406 to $1,899,149 in 202406, indicating financial stability and capacity.
Very low liabilities relative to assets, demonstrating sound financial management (e.g., $8,892 liabilities vs. $1,899,149 assets in 202406).
Consistent reporting of 0% officer compensation, suggesting high efficiency in leadership costs.
Consistent IRS 990 filing history (12 filings), indicating good transparency and compliance.
Spending Breakdown
How Chai Preschool Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
7%
Admin Costs
Reasonable — admin costs in check
3%
Fundraising
Within typical range
How to read this: Well-run charities typically spend 75% or more on programs, keep admin under 25%, and fundraising under 15%. A high program ratio means more of every dollar goes directly to the mission.
How to Interpret This Report
What Red Flags Mean
Red flags are potential warning signs identified by AI analysis of IRS 990 filings. They may indicate issues like declining revenue, high executive pay relative to program spending, lack of transparency, or governance concerns. A single red flag does not necessarily mean an organization is untrustworthy, but multiple flags warrant further investigation before donating.
What Mission Score Measures
The Mission Score (0-100) evaluates how effectively a nonprofit fulfills its stated purpose. It combines multiple factors: program spending efficiency (how much goes to programs vs. overhead), financial health and sustainability, governance quality, transparency in reporting, and consistency of operations over time. A score of 70+ indicates strong alignment with the organization’s mission.
Using This Data for Donation Decisions
Use this report as one input in your decision. Look at the overall Mission Score for a quick assessment, review red flags and strengths for specific concerns, check the spending breakdown to see where money goes, and compare executive compensation to the organization’s size. Consider viewing the full transparency report for deeper analysis, and always verify tax-exempt status with the IRS before making large donations.
Frequently Asked Questions about Chai Preschool Inc
Is Chai Preschool Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Chai Preschool Inc (EIN: 204801654) appears trustworthy. Mission Score: 92/100. 2 red flags identified, 5 strengths noted.
Is Chai Preschool Inc a good charity to donate to?
Chai Preschool Inc has a Mission Score of 92/100. Revenue: $2.4M. Assets: $689K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Chai Preschool Inc?
The Employer Identification Number (EIN) for Chai Preschool Inc is 204801654. This is the unique tax ID assigned by the IRS.
What is a Mission Score?
The Mission Score is a 0-100 rating that measures how effectively a nonprofit fulfills its stated mission. It factors in program spending efficiency, financial transparency, governance practices, and outcome reporting. Scores above 70 indicate strong mission alignment, 40-69 suggest mixed performance, and below 40 signals potential concerns.
How does Chai Preschool Inc spend its money?
Chai Preschool Inc allocates 90% to programs, 7% to administration, and 3% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Chai Preschool Inc's tax-exempt status?
You can verify Chai Preschool Inc's tax-exempt status using EIN 204801654 on the IRS Tax Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. You can also request copies of their Form 990 directly from the organization, as they are required by law to provide them upon request.
AI Transparency Report
Chai Preschool Inc. demonstrates a consistent pattern of strong program spending, with expenses closely aligning with revenue across most filing periods, indicating efficient use of funds for its mission. For instance, in the 202406 period, expenses were $1,941,376 against revenues of $1,998,142, showing a high proportion of funds directed towards operations. The organization has also shown significant growth in assets over time, from $242,456 in 201706 to $1,899,149 in 202406, suggesting sound financial management and capacity building.
The organization's transparency is bolstered by its consistent filing of IRS Form 990s, with 12 filings available, providing a clear historical financial record. A notable aspect is the reported 0% officer compensation across all available filings, which indicates that executive leadership is either unpaid or compensated through other means not categorized as officer compensation, potentially contributing to a higher proportion of funds available for programs. While the exact breakdown of program, administrative, and fundraising expenses isn't explicitly detailed in the provided summary, the close alignment of total expenses to total revenue suggests a lean operational structure.
Overall, Chai Preschool Inc. appears to be a financially healthy and efficiently run organization, consistently directing its resources towards its educational mission. The growth in revenue and assets, coupled with minimal liabilities and no reported officer compensation, paints a positive picture of its financial stewardship and commitment to its purpose.