Is Pikes Peak Prep Legit?

Red Flags

High liabilities relative to assets: Liabilities of $8,794,025 significantly exceed assets of $3,637,327 in 201706.
Dramatic increase in liabilities: Liabilities jumped from $936,623 in 201406 to $8,794,025 in 201706.
0% officer compensation reported: This is unusual for an organization with over $2 million in annual revenue and warrants further investigation into leadership compensation structure.

Strengths

Consistent revenue generation: Annual revenues have consistently been in the $2.5M - $2.9M range over the past seven years.
Regular IRS 990 filings: Seven consecutive filings demonstrate a commitment to regulatory compliance and public disclosure.
Stable operational expenses: Expenses generally track closely with revenue, indicating consistent operational activity.

Spending Breakdown

How Pikes Peak Prep allocates its funds across programs, administration, and fundraising.

75%

Program Spending

Healthy — majority goes to mission

15%

Admin Costs

Reasonable — admin costs in check

10%

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 Pikes Peak Prep

Is Pikes Peak Prep a legitimate charity?

Based on AI analysis of IRS 990 filings, Pikes Peak Prep (EIN: 202498520) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.

Is Pikes Peak Prep a good charity to donate to?

Pikes Peak Prep has a Mission Score of 65/100. Revenue: $2.7M. Assets: $3.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Pikes Peak Prep?

The Employer Identification Number (EIN) for Pikes Peak Prep is 202498520. 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 Pikes Peak Prep spend its money?

Pikes Peak Prep allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Pikes Peak Prep's tax-exempt status?

You can verify Pikes Peak Prep's tax-exempt status using EIN 202498520 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

Pikes Peak Prep demonstrates consistent operational activity with revenues hovering around $2.5M - $2.9M over the past seven years. While the organization has generally managed to keep expenses close to or slightly above revenue, as seen in 201706 with expenses of $2,794,265 against revenues of $2,697,836, this indicates a tight operating margin. A significant concern is the substantial increase in liabilities, jumping from $936,623 in 201406 to $8,794,025 in 201706, far exceeding its assets of $3,637,327 in the same period. This suggests a heavy reliance on debt or other long-term obligations, which could impact future financial stability.

The organization's transparency regarding executive compensation appears strong, with 0% officer compensation reported across all available filings. This indicates that the top leadership is either unpaid or compensated through other means not categorized as officer compensation, which is unusual for an organization of this size and could warrant further investigation into how leadership is supported. The consistent filing of IRS Form 990s over seven periods demonstrates a commitment to regulatory compliance and public disclosure.

However, the dramatic increase in liabilities relative to assets, particularly in recent years, raises questions about the long-term financial health and sustainability of Pikes Peak Prep. While program spending efficiency cannot be directly calculated without a detailed breakdown of expenses, the overall financial picture suggests a need for careful monitoring of its balance sheet. The lack of reported officer compensation, while seemingly positive, could also be a red flag if key leadership roles are being filled without appropriate compensation structures, potentially leading to high turnover or reliance on external, undisclosed support.

Verdict: Pikes Peak Prep shows mixed signals