Is Homestead Christian Academy Inc Legit?

Quick charity verification for Homestead Christian Academy Inc (EIN: 203615366)

Verdict: Homestead Christian Academy Inc appears trustworthy

85/100Mission Score

$1.0MRevenue

$1.6MAssets

1Red Flags

5Strengths

Red Flags

Significant increase in liabilities over time, reaching $1,201,374 in 2023, which warrants further investigation into their nature and repayment capacity.

Strengths

Consistent and strong revenue growth over the past decade, from $573,926 in 2014 to $1,203,350 in 2023.
Substantial asset growth, increasing from $82,599 in 2014 to $1,838,706 in 2023.
0% reported officer compensation across all filings, indicating a strong commitment to mission-focused spending.
Positive net assets, with assets exceeding liabilities in most recent filings (e.g., $1,838,706 assets vs. $1,201,374 liabilities in 2023).
Consistent IRS 990 filing history, demonstrating good compliance and transparency.

Spending Breakdown

How Homestead Christian Academy Inc allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

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 Homestead Christian Academy Inc

Is Homestead Christian Academy Inc a legitimate charity?

Based on AI analysis of IRS 990 filings, Homestead Christian Academy Inc (EIN: 203615366) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 5 strengths noted.

Is Homestead Christian Academy Inc a good charity to donate to?

Homestead Christian Academy Inc has a Mission Score of 85/100. Revenue: $1.0M. Assets: $1.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Homestead Christian Academy Inc?

The Employer Identification Number (EIN) for Homestead Christian Academy Inc is 203615366. 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 Homestead Christian Academy Inc spend its money?

Homestead Christian Academy Inc allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Homestead Christian Academy Inc's tax-exempt status?

You can verify Homestead Christian Academy Inc's tax-exempt status using EIN 203615366 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

Homestead Christian Academy Inc demonstrates a generally stable financial position with consistent revenue growth over the past decade, increasing from $573,926 in 2014 to $1,203,350 in 2023. The organization has also significantly grown its assets, from $82,599 in 2014 to $1,838,706 in 2023, indicating substantial expansion. However, a notable increase in liabilities, reaching $1,201,374 in 2023, suggests reliance on debt or other obligations to finance this growth, which warrants closer examination.

Spending efficiency appears reasonable, with expenses generally tracking revenue. For instance, in 2023, expenses were $1,160,222 against revenues of $1,203,350, resulting in a surplus. The consistent reporting of 0% officer compensation across all available filings indicates a commitment to directing funds towards the organization's mission rather than executive salaries, which is a positive sign for donor confidence. The NTEE code B21 (Elementary & Secondary Education) aligns with the organization's name, suggesting a clear program focus.

While the financial data provides a good overview, the absence of detailed functional expense breakdowns (program, administrative, fundraising) in the provided summary limits a precise assessment of spending efficiency. The organization's consistent filing history and the reported 0% officer compensation contribute positively to its transparency profile. However, understanding the nature of the increasing liabilities would further enhance the transparency assessment.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.