Quick charity verification for Democracy Prep Public Schools (EIN: 202629354)
Verdict: Democracy Prep Public Schools appears trustworthy
85/100Mission Score
$26.0MRevenue
$58.9MAssets
1Red Flags
4Strengths
Red Flags
Significant increase in liabilities to $42,266,529 in 2023, warranting further investigation into their nature.
Strengths
Consistent revenue growth over the past decade, from $8M in 2014 to over $26M in 2023.
Strong asset accumulation, growing from $1.5M in 2014 to over $51M in 2023.
Revenues consistently exceeding expenses in most recent years, indicating sound financial management.
No reported officer compensation across all filings, suggesting efficient use of funds or volunteer leadership at the executive level.
Spending Breakdown
How Democracy Prep Public Schools allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
5%
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 Democracy Prep Public Schools
Is Democracy Prep Public Schools a legitimate charity?
Based on AI analysis of IRS 990 filings, Democracy Prep Public Schools (EIN: 202629354) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is Democracy Prep Public Schools a good charity to donate to?
Democracy Prep Public Schools has a Mission Score of 85/100. Revenue: $26.0M. Assets: $58.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Democracy Prep Public Schools?
The Employer Identification Number (EIN) for Democracy Prep Public Schools is 202629354. 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 Democracy Prep Public Schools spend its money?
Democracy Prep Public Schools allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Democracy Prep Public Schools's tax-exempt status?
You can verify Democracy Prep Public Schools's tax-exempt status using EIN 202629354 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
Democracy Prep Public Schools demonstrates a generally stable financial trajectory, with revenues consistently exceeding expenses in recent years, leading to a healthy growth in assets. For instance, in fiscal year 2023, revenue was $26,763,497 against expenses of $22,474,670, contributing to an asset base of $51,801,110. This indicates effective financial management and an ability to build reserves. The organization's liabilities have also grown, reaching $42,266,529 in 2023, which warrants monitoring, though the asset-to-liability ratio remains positive.
The organization's transparency appears strong regarding executive compensation, as reported officer compensation has been 0% across all available filings. This suggests that key leadership may be compensated through other means not categorized as 'officer compensation' on the 990, or that the organization relies heavily on non-compensated leadership or a different compensation structure. Further detail on program spending efficiency would provide a more complete picture, but the overall financial health, marked by consistent revenue generation and asset growth, is positive.