Quick charity verification for Chicago Freedom School (EIN: 204735643)
Verdict: Chicago Freedom School appears trustworthy
75/100Mission Score
$974KRevenue
$1.5MAssets
3Red Flags
3Strengths
Red Flags
Consistent operating deficits in recent years (2022 and 2023), with expenses exceeding revenue by $160,174 in 2023 and $331,904 in 2022.
Significant and rapid decline in revenue from $2,547,288 in 2020 to $918,739 in 2023, indicating potential instability in funding sources.
Unusually high liabilities in 2022 ($797,986) relative to assets, though they decreased in 2023.
Strengths
Zero reported officer compensation across all available filings, indicating a strong commitment to directing funds to the mission.
Substantial asset base of $1,526,474 in 2023, providing some financial cushion.
History of significant revenue generation, peaking at over $2.5 million in 2020.
Spending Breakdown
How Chicago Freedom School allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
10%
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 Chicago Freedom School
Is Chicago Freedom School a legitimate charity?
Based on AI analysis of IRS 990 filings, Chicago Freedom School (EIN: 204735643) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is Chicago Freedom School a good charity to donate to?
Chicago Freedom School has a Mission Score of 75/100. Revenue: $974K. Assets: $1.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Chicago Freedom School?
The Employer Identification Number (EIN) for Chicago Freedom School is 204735643. 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 Chicago Freedom School spend its money?
Chicago Freedom School allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Chicago Freedom School's tax-exempt status?
You can verify Chicago Freedom School's tax-exempt status using EIN 204735643 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
The Chicago Freedom School demonstrates a mixed financial picture. While the organization has shown significant revenue fluctuations over the past five years, peaking at $2,547,288 in 2020 and then declining to $918,739 in 2023, its asset base has generally grown, reaching $1,526,474 in 2023. The organization has consistently reported 0% officer compensation, which is a strong indicator of transparency and a commitment to directing funds towards its mission rather than executive salaries. However, recent years (2022 and 2023) show expenses exceeding revenue, with expenses of $1,078,913 against revenue of $918,739 in 2023, suggesting a need for careful financial management to ensure long-term sustainability.
Spending efficiency cannot be fully assessed without a detailed breakdown of program, administrative, and fundraising expenses, which is not provided in the summary data. However, the consistent lack of reported officer compensation suggests a lean approach to leadership costs. The organization's liabilities have also fluctuated, reaching a high of $797,986 in 2022 before decreasing to $317,082 in 2023, indicating some variability in financial obligations. Overall, the Chicago Freedom School appears committed to transparency regarding executive pay, but its recent operating deficits warrant attention.