Quick charity verification for Covenant Community School Inc (EIN: 204173225)
Verdict: Covenant Community School Inc appears trustworthy
90/100Mission Score
$1.4MRevenue
$833KAssets
2Red Flags
5Strengths
Red Flags
Unusually low liabilities relative to assets, which could warrant further investigation into financial structure.
Consistent 0% officer compensation for an organization of this size, which is atypical and might suggest alternative compensation structures or a fully volunteer leadership that should be clearly disclosed.
Strengths
Strong and consistent revenue growth, nearly doubling from $627,587 in 2020 to $1,158,337 in 2022.
Significant asset accumulation, growing from $88,105 in 2020 to $833,045 currently, indicating financial stability.
Consistent generation of financial surpluses in recent years (e.g., $982,296 expenses vs. $1,158,337 revenue in 2022).
Low liabilities relative to assets, demonstrating a healthy balance sheet.
Consistent reporting of 0% officer compensation, suggesting a high proportion of funds may go directly to programs.
Spending Breakdown
How Covenant Community School Inc allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
0%
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 Community School Inc
Is Covenant Community School Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Covenant Community School Inc (EIN: 204173225) appears trustworthy. Mission Score: 90/100. 2 red flags identified, 5 strengths noted.
Is Covenant Community School Inc a good charity to donate to?
Covenant Community School Inc has a Mission Score of 90/100. Revenue: $1.4M. Assets: $833K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Covenant Community School Inc?
The Employer Identification Number (EIN) for Covenant Community School Inc is 204173225. 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 Community School Inc spend its money?
Covenant Community School Inc allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Covenant Community School Inc's tax-exempt status?
You can verify Covenant Community School Inc's tax-exempt status using EIN 204173225 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 Community School Inc demonstrates a positive trend in financial health, with its latest reported revenue reaching $1,382,508 and assets growing significantly to $833,045. The organization has shown consistent revenue growth over the past several years, nearly doubling its revenue from $627,587 in 2020 to $1,158,337 in 2022. This growth is accompanied by a healthy accumulation of assets, indicating sound financial management and an ability to build reserves. The organization's liabilities have remained relatively low compared to its assets, further strengthening its financial position.
Regarding spending efficiency, the provided data indicates that the organization has consistently managed its expenses below its revenue in recent years, particularly in 2021 and 2022, where expenses were $825,701 against $924,063 revenue and $982,296 against $1,158,337 revenue, respectively. This suggests effective cost control and a surplus that can be reinvested into its programs or reserves. The absence of reported officer compensation across all filings is a notable aspect, suggesting that leadership may be volunteer-based or compensated through other means not categorized as officer compensation, which can contribute to lower administrative overhead.
Transparency appears to be strong given the consistent filing of IRS Form 990s over 12 periods, providing a comprehensive historical financial record. The consistent reporting of 0% officer compensation across all available filings is a significant transparency point, indicating that the organization is not allocating funds to executive salaries in the traditional sense. This practice, if sustained, can enhance public trust and perception of donor dollar utilization.