Significant revenue decline from $9.59M in 2013 to $0.91M in 2015, raising concerns about sustainability.
Reporting 0% compensation for all highest-paid employees across multiple years is a major red flag.
Inconsistent fiscal year-end reporting (December to June) makes year-over-year comparisons difficult and raises questions about financial transparency.
Lack of detailed information regarding program activities and their associated costs.
Strengths
Maintains a positive asset-to-liability ratio, indicating some financial stability despite revenue declines.
Consistently reports assets over $2.7M, suggesting a base of resources.
Spending Breakdown
How Preferred Children's Services Inc allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
15%
Admin Costs
Reasonable — admin costs in check
15%
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 Preferred Children's Services Inc
Is Preferred Children's Services Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Preferred Children's Services Inc (EIN: 222821035) shows mixed signals. Mission Score: 65/100. 4 red flags identified, 2 strengths noted.
Is Preferred Children's Services Inc a good charity to donate to?
Preferred Children's Services Inc has a Mission Score of 65/100. Revenue: $0. Assets: $0. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Preferred Children's Services Inc?
The Employer Identification Number (EIN) for Preferred Children's Services Inc is 222821035. 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 Preferred Children's Services Inc spend its money?
Preferred Children's Services Inc allocates 70% to programs, 15% to administration, and 15% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Preferred Children's Services Inc's tax-exempt status?
You can verify Preferred Children's Services Inc's tax-exempt status using EIN 222821035 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
Preferred Children's Services Inc is a unknown nonprofit based in Lakewood, New Jersey, with reported revenue of $0 and assets of $0. Our AI analysis assigns a Mission Score of 65/100 (Good). Approximately 70% of spending goes to programs, 15% to administration, and 15% to fundraising. Executive compensation is reported as 0% across all available filings, which is highly unusual for an organization with significant revenue and assets, suggesting potential underreporting or alternative compensation structures. Revenue has remained stable +3% across 5 filing periods.