Quick charity verification for Covenant Academy (EIN: 141961130)
Verdict: Covenant Academy appears trustworthy
92/100Mission Score
$1.8MRevenue
$2.2MAssets
1Red Flags
4Strengths
Red Flags
Consistent 0% officer compensation for an organization of this size, which, while positive for efficiency, warrants further inquiry into how leadership is compensated or structured to ensure sustainability and avoid potential misclassification.
Strengths
Consistent revenue and asset growth over a decade, demonstrating financial stability and expansion.
Zero reported officer compensation, indicating a high dedication of funds to programmatic activities.
Regular and consistent IRS 990 filings, reflecting good governance and transparency.
Favorable asset-to-liability ratio, suggesting strong solvency and financial management.
Spending Breakdown
How Covenant Academy 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 Covenant Academy
Is Covenant Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Covenant Academy (EIN: 141961130) appears trustworthy. Mission Score: 92/100. 1 red flag identified, 4 strengths noted.
Is Covenant Academy a good charity to donate to?
Covenant Academy has a Mission Score of 92/100. Revenue: $1.8M. Assets: $2.2M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Covenant Academy?
The Employer Identification Number (EIN) for Covenant Academy is 141961130. 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 Covenant Academy spend its money?
Covenant Academy allocates 90% to programs, 7% to administration, and 3% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Covenant Academy's tax-exempt status?
You can verify Covenant Academy's tax-exempt status using EIN 141961130 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
Covenant Academy demonstrates consistent growth in revenue and assets over the past decade, indicating a stable financial trajectory. For instance, revenue grew from $461,668 in 2015 to $1,538,023 in 2024, and assets increased from $738,591 to $1,889,874 in the same period. The organization consistently reports 0% officer compensation, which is a significant indicator of strong financial stewardship and a commitment to directing funds towards its mission rather than executive salaries. This practice enhances transparency and trust, as it suggests that leadership is either volunteer-based or compensated through other means not classified as officer compensation, which would require further investigation to fully understand.
While the filings show expenses often closely tracking or slightly exceeding revenue in some years (e.g., 2024 expenses of $1,543,783 against revenue of $1,538,023), the overall trend of increasing assets suggests effective management of resources and a healthy balance sheet. The organization's liabilities have also grown alongside assets, from $498,194 in 2015 to $1,261,217 in 2024, which is a common trend for growing organizations, but the asset-to-liability ratio remains favorable, indicating solvency. The consistent filing of 990s over 13 periods further demonstrates a commitment to regulatory compliance and transparency.
Given the NTEE code B20 (Elementary & Secondary Education), the absence of officer compensation is particularly noteworthy for an educational institution of this size. This structure, combined with consistent financial growth and regular reporting, paints a picture of a financially sound and transparent organization that prioritizes its programmatic mission.