Quick charity verification for Dream Schools (EIN: 204657268)
Verdict: Dream Schools shows mixed signals
60/100Mission Score
$1.4MRevenue
$11.0MAssets
4Red Flags
3Strengths
Red Flags
Extremely low reported expenses relative to revenue and assets, raising questions about full financial disclosure (e.g., $9,785 expenses on $1,047,935 revenue in 2023).
Consistent 0% officer compensation reported across all filings, which is unusual for an organization of this size and asset base.
Lack of clear breakdown for program, administrative, and fundraising expenses due to minimal overall reported expenses.
Significant liabilities relative to assets, such as $4,040,386 in liabilities against $10,467,826 in assets in 2023, without clear explanation of their nature.
Strengths
Consistent growth in assets, from $4.04 million in 2014 to $10.97 million currently, indicating financial stability and accumulation of resources.
Steady revenue generation, with latest revenue at $1,427,605, showing ongoing financial support.
No reported officer compensation, which could indicate a highly volunteer-driven leadership model, potentially reducing overhead if true.
Spending Breakdown
How Dream Schools allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
5%
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 Dream Schools
Is Dream Schools a legitimate charity?
Based on AI analysis of IRS 990 filings, Dream Schools (EIN: 204657268) shows mixed signals. Mission Score: 60/100. 4 red flags identified, 3 strengths noted.
Is Dream Schools a good charity to donate to?
Dream Schools has a Mission Score of 60/100. Revenue: $1.4M. Assets: $11.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Dream Schools?
The Employer Identification Number (EIN) for Dream Schools is 204657268. 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 Dream Schools spend its money?
Dream Schools allocates 90% to programs, 5% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Dream Schools's tax-exempt status?
You can verify Dream Schools's tax-exempt status using EIN 204657268 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
Dream Schools demonstrates a unique financial profile with consistently low reported expenses relative to its revenue and assets. For instance, in 2023, with over $1 million in revenue, the organization reported only $9,785 in expenses. This pattern is consistent across all available filings, where expenses rarely exceed 2% of revenue, and in 2017, zero expenses were reported. This raises questions about the full scope of its operational activities and how its mission is being achieved with such minimal reported outflows. While the organization has shown consistent growth in assets, from $4.04 million in 2014 to $10.97 million currently, the extremely low expense figures make it difficult to assess spending efficiency or the actual allocation of funds towards programs, administration, or fundraising. The absence of reported officer compensation across all filings suggests either a fully volunteer-led executive team or that compensation is reported under a different category not immediately apparent, which impacts transparency regarding leadership costs.