Is Madison Pre School Legit?

Spending Breakdown

How Madison Pre School allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

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 Madison Pre School

Is Madison Pre School a legitimate charity?

Based on AI analysis of IRS 990 filings, Madison Pre School (EIN: 20373055) shows mixed signals. Mission Score: 65/100. 2 red flags identified, 2 strengths noted.

Is Madison Pre School a good charity to donate to?

Madison Pre School has a Mission Score of 65/100. Revenue: $29K. Assets: $17K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Madison Pre School?

The Employer Identification Number (EIN) for Madison Pre School is 20373055. 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 Madison Pre School spend its money?

Madison Pre School allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Madison Pre School's tax-exempt status?

You can verify Madison Pre School's tax-exempt status using EIN 20373055 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

Madison Pre School operates on a relatively small budget, with recent annual revenues around $25,000-$32,000. The organization consistently reports zero officer compensation, which is a positive indicator for a small nonprofit as it suggests volunteer leadership or very modest operational costs not allocated to executive salaries. However, the organization has frequently operated at a deficit, with expenses exceeding revenue in several recent periods, such as 202406 (expenses $28,161 vs. revenue $25,143) and 202306 (expenses $27,387 vs. revenue $23,494). This trend of spending more than it earns could lead to long-term financial instability if not addressed. While assets have fluctuated, they remain modest, with the latest reported at $12,530, which is less than a year's operating expenses. The consistent filing of IRS Form 990-EZ demonstrates a basic level of transparency for an organization of its size.

The financial health appears somewhat precarious due to the recurring deficits. For instance, in 202406, the organization spent $3,018 more than it brought in. While the lack of officer compensation is a strength, the overall financial strategy needs to ensure sustainability. The organization's ability to maintain operations despite these deficits suggests reliance on prior year surpluses or perhaps short-term funding that isn't fully captured in the annual revenue figures, or it is slowly depleting its reserves. Without a detailed breakdown of expenses, it's challenging to assess spending efficiency beyond the top-line figures, but the consistent operational deficits are a concern.

Verdict: Madison Pre School shows mixed signals

Red Flags

Strengths