Quick charity verification for Choice Academies Inc (EIN: 208809933)
Verdict: Choice Academies Inc appears trustworthy
80/100Mission Score
$7.1MRevenue
$17.4MAssets
2Red Flags
4Strengths
Red Flags
Consistent 0% reported officer compensation for an organization of this size, potentially indicating a lack of transparency in executive remuneration.
High liabilities relative to assets (e.g., $14.4M liabilities vs. $16.9M assets in 2023), which could indicate significant debt or other long-term obligations.
Strengths
Consistent revenue growth, with 2023 revenue at $8,153,698, up from $7,018,767 in 2022.
Revenues generally exceed expenses in recent years, indicating sound financial management (e.g., 2023 revenue $8,153,698 vs. expenses $7,462,001).
Stable asset base, consistently around $16-17 million over the past decade.
Strong estimated program spending ratio of 75%, indicating a focus on its mission.
Spending Breakdown
How Choice Academies Inc allocates its funds across programs, administration, and fundraising.
75%
Program Spending
Healthy — majority goes to mission
15%
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 Choice Academies Inc
Is Choice Academies Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Choice Academies Inc (EIN: 208809933) appears trustworthy. Mission Score: 80/100. 2 red flags identified, 4 strengths noted.
Is Choice Academies Inc a good charity to donate to?
Choice Academies Inc has a Mission Score of 80/100. Revenue: $7.1M. Assets: $17.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Choice Academies Inc?
The Employer Identification Number (EIN) for Choice Academies Inc is 208809933. 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 Choice Academies Inc spend its money?
Choice Academies Inc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Choice Academies Inc's tax-exempt status?
You can verify Choice Academies Inc's tax-exempt status using EIN 208809933 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
Choice Academies Inc. demonstrates a consistent operational profile with revenues generally exceeding expenses in recent years, indicating sound financial management. For instance, in 2023, revenue was $8,153,698 against expenses of $7,462,001, resulting in a surplus. The organization's assets have remained relatively stable, hovering around $16-17 million, with liabilities consistently high, often exceeding $14 million. This high liability-to-asset ratio suggests a significant reliance on debt or other long-term obligations, which warrants closer examination.
The organization's spending efficiency appears reasonable, with a healthy program spending ratio (estimated at 75%). The consistent reporting of 0% officer compensation across all available filings is a notable aspect of its transparency and financial practices, suggesting that executive leadership may be compensated through other means or that the organization operates with a volunteer-based executive structure, which is unusual for an organization of this size. This lack of reported officer compensation, while seemingly positive, could also indicate a lack of transparency if compensation is simply not reported under this specific line item but exists elsewhere.
Overall, Choice Academies Inc. appears to be financially stable with a positive trend in net assets in the most recent periods. However, the high liabilities and the consistent 0% officer compensation warrant further investigation to fully understand the organization's financial structure and executive remuneration practices. The organization's NTEE code B29 (Elementary & Secondary Education) aligns with its mission, and the financial data suggests it is actively engaged in its programmatic activities.