Quick charity verification for Precious Blessings Academy (EIN: 205990637)
Verdict: Precious Blessings Academy shows mixed signals
45/100Mission Score
$234KRevenue
$220KAssets
4Red Flags
1Strengths
Red Flags
Persistent operating deficits: Expenses exceeded revenue in 8 out of 10 reported periods, including significant deficits in 2021 and 2022.
High liabilities relative to assets: In 2022, liabilities ($468,343) were more than double assets ($219,579), indicating a precarious financial position.
Significant increase in liabilities: Liabilities jumped from $109,852 in 2020 to $471,117 in 2021 and $468,343 in 2022, a substantial increase in debt.
Declining assets: Assets decreased from $356,144 in 2021 to $219,579 in 2022, while liabilities remained high.
Strengths
No officer compensation reported: The organization consistently reports 0% officer compensation, indicating good stewardship in executive pay.
Spending Breakdown
How Precious Blessings Academy allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
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 Precious Blessings Academy
Is Precious Blessings Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Precious Blessings Academy (EIN: 205990637) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 1 strength noted.
Is Precious Blessings Academy a good charity to donate to?
Precious Blessings Academy has a Mission Score of 45/100. Revenue: $234K. Assets: $220K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Precious Blessings Academy?
The Employer Identification Number (EIN) for Precious Blessings Academy is 205990637. 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 Precious Blessings Academy spend its money?
Precious Blessings Academy allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Precious Blessings Academy's tax-exempt status?
You can verify Precious Blessings Academy's tax-exempt status using EIN 205990637 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
Precious Blessings Academy exhibits concerning financial trends, particularly in its most recent filings. In 2022, the organization reported expenses of $368,146 against revenues of $234,355, resulting in a significant deficit. This follows a similar pattern in 2021 where expenses ($471,335) also exceeded revenues ($317,853). The organization's liabilities have grown substantially, reaching $468,343 in 2022, far exceeding its assets of $219,579. This indicates a precarious financial position with liabilities more than double its assets.
While the organization consistently reports 0% officer compensation, which suggests good stewardship in that area, the overall financial health is weak due to persistent operating deficits and a growing debt burden. The lack of detailed expense breakdowns in the provided data makes it difficult to assess spending efficiency beyond the top-line figures. However, the consistent spending beyond revenue generation is a major concern for long-term sustainability.
Transparency regarding specific program, administrative, and fundraising expenses is not available from the provided summary data, which limits a full assessment of spending efficiency. The consistent reporting of 0% officer compensation across all filings is a positive indicator of executive compensation practices, but it does not offset the broader financial instability.