Expenses frequently exceed revenue, as seen in 2023 ($757,241 expenses vs. $654,593 revenue), indicating potential operational deficits.
Revenue has shown a declining trend from a peak of $931,795 in 2019 to $654,593 in 2023, which could impact future operations.
Strengths
Consistent reporting of 0% officer compensation across all filings, demonstrating high transparency and dedication to mission.
Maintained a base of assets, growing from $197,556 in 2014 to $278,600 in 2023, providing some financial stability.
Liabilities have decreased significantly in the most recent period (2023) to $65,748 from higher levels in previous years.
Spending Breakdown
How Grace Prep Incorporated allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
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 Grace Prep Incorporated
Is Grace Prep Incorporated a legitimate charity?
Based on AI analysis of IRS 990 filings, Grace Prep Incorporated (EIN: 201224844) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is Grace Prep Incorporated a good charity to donate to?
Grace Prep Incorporated has a Mission Score of 75/100. Revenue: $608K. Assets: $284K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Grace Prep Incorporated?
The Employer Identification Number (EIN) for Grace Prep Incorporated is 201224844. 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 Grace Prep Incorporated spend its money?
Grace Prep Incorporated allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Grace Prep Incorporated's tax-exempt status?
You can verify Grace Prep Incorporated's tax-exempt status using EIN 201224844 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
Grace Prep Incorporated demonstrates a consistent operational history with revenues generally in the $600,000 to $900,000 range over the past decade. While the organization has experienced fluctuations, the most recent filing (202306) shows expenses ($757,241) exceeding revenue ($654,593), leading to a net deficit for that period. This trend of expenses sometimes outpacing revenue is visible in several past years (e.g., 2018, 2017, 2016), suggesting a need for careful financial management to maintain long-term sustainability. Assets have shown growth over time, reaching $278,600 in 2023, indicating some financial stability, though liabilities have also been present.
Spending efficiency appears to be a key area for analysis, as the organization's expenses frequently align closely with or exceed its revenues. Without a detailed breakdown of program, administrative, and fundraising expenses from the provided data, it's challenging to fully assess efficiency. However, the consistent reporting of 0% officer compensation across all filings is a strong indicator of transparency and a commitment to directing funds towards the organization's mission rather than executive salaries. This practice is commendable and suggests a volunteer-driven or very lean leadership structure.
Overall, Grace Prep Incorporated appears to be a transparent organization, particularly regarding executive compensation. Its financial health shows periods of deficit spending, which warrants monitoring, but it maintains a base of assets. A deeper dive into the allocation of its expenses would provide a clearer picture of its spending efficiency and program focus.