Quick charity verification for Memphis Business Academy (EIN: 201195290)
Verdict: Memphis Business Academy appears trustworthy
92/100Mission Score
$25.7MRevenue
$41.3MAssets
1Red Flags
5Strengths
Red Flags
Unusually low or zero reported officer compensation for an organization of this size, which might indicate compensation is reported under other categories or through related entities not immediately apparent on the 990.
Strengths
Consistent and strong revenue growth, increasing from $6.8M in 2014 to $25.4M in 2023.
Healthy asset base of $39.3M in 2023, significantly exceeding liabilities.
Positive net income (revenue exceeding expenses) in most reported years, contributing to asset growth.
No reported officer compensation across all 13 filings, suggesting resources are directed away from executive salaries.
Strong financial stability and capacity for program expansion, evidenced by growing assets and consistent surpluses.
Spending Breakdown
How Memphis Business Academy allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
7%
Admin Costs
Reasonable — admin costs in check
3%
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 Memphis Business Academy
Is Memphis Business Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Memphis Business Academy (EIN: 201195290) appears trustworthy. Mission Score: 92/100. 1 red flag identified, 5 strengths noted.
Is Memphis Business Academy a good charity to donate to?
Memphis Business Academy has a Mission Score of 92/100. Revenue: $25.7M. Assets: $41.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Memphis Business Academy?
The Employer Identification Number (EIN) for Memphis Business Academy is 201195290. 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 Memphis Business Academy spend its money?
Memphis Business Academy allocates 90% to programs, 7% to administration, and 3% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Memphis Business Academy's tax-exempt status?
You can verify Memphis Business Academy's tax-exempt status using EIN 201195290 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
Memphis Business Academy demonstrates consistent growth in revenue and assets over the past decade, indicating a stable and expanding financial base. For the fiscal period ending June 2023, the organization reported revenues of $25,443,148 against expenses of $23,477,775, resulting in a surplus. This trend of generating surpluses is evident across multiple years, contributing to a healthy asset base of $39,379,607. The organization's liabilities, while substantial at $17,016,890 in 2023, are well-covered by its assets.
The spending efficiency appears strong, with a significant portion of expenses likely directed towards program services, given the nature of an educational institution and the absence of reported officer compensation. The consistent growth in revenue and assets suggests effective financial management and fundraising, allowing for expansion of its educational mission. The lack of reported officer compensation across all available filings is a notable aspect of its transparency and financial structure, suggesting resources are not being diverted to high executive salaries.
Overall, Memphis Business Academy exhibits robust financial health, efficient spending, and a high degree of transparency regarding executive compensation. Its consistent growth and positive financial performance position it as a well-managed nonprofit focused on its educational objectives.