Is Chance Academy Legit?

Red Flags

Significant deficit in 2023 ($681,291, with expenses of $1,677,119 exceeding revenue of $995,828).
Substantial increase in liabilities from $57,592 in 2022 to $402,230 in 2023.
Fluctuating revenue and expenses, indicating potential instability in funding or operational costs.
Assets decreased from $1,559,693 in 2022 to $1,223,040 in 2023 while liabilities increased.

Spending Breakdown

How Chance Academy allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

Admin Costs

Reasonable — admin costs in check

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 Chance Academy

Is Chance Academy a legitimate charity?

Based on AI analysis of IRS 990 filings, Chance Academy (EIN: 134361892) appears trustworthy. Mission Score: 70/100. 4 red flags identified, 4 strengths noted.

Is Chance Academy a good charity to donate to?

Chance Academy has a Mission Score of 70/100. Revenue: $1.4M. Assets: $800K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Chance Academy?

The Employer Identification Number (EIN) for Chance Academy is 134361892. 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 Chance Academy spend its money?

Chance Academy allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Chance Academy's tax-exempt status?

You can verify Chance Academy's tax-exempt status using EIN 134361892 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

Chance Academy demonstrates fluctuating financial health over the past several years. While the organization reported a strong revenue of $2,306,904 in 2021, its most recent filing (2023) shows expenses ($1,677,119) significantly exceeding revenue ($995,828), leading to a substantial deficit. This trend of expenses outpacing revenue was also observed in 2019 and 2017, indicating potential challenges in consistent financial management or reliance on reserves. The organization's assets have also seen considerable fluctuation, peaking at $1,559,693 in 2022 before dropping to $1,223,040 in 2023, while liabilities increased significantly from $57,592 in 2022 to $402,230 in 2023, which warrants closer examination.

Spending efficiency is difficult to fully assess without a detailed functional expense breakdown, which is not provided in the summary data. However, the consistent reporting of 0% officer compensation across all available filings suggests a commitment to directing funds towards the mission rather than executive salaries, which is a positive indicator. The significant increase in liabilities in the latest filing, coupled with a deficit, suggests potential operational or funding challenges that could impact future program delivery.

In terms of transparency, the consistent filing of IRS Form 990s over 13 periods is a strong positive. The absence of reported officer compensation is also a transparent practice. However, without more detailed expense breakdowns (e.g., program vs. administrative vs. fundraising costs), a complete picture of spending efficiency and resource allocation remains somewhat opaque. The recent financial instability, particularly the large deficit and increased liabilities in 2023, would benefit from further transparent explanation.

Verdict: Chance Academy appears trustworthy