Is Scottsdale Preparatory Academy Legit? —…

Quick charity verification for Scottsdale Preparatory Academy (EIN: 208778703)

Strengths

Consistent revenue growth, from $7,042,580 in 2014 to $10,726,233 in 2023, demonstrating financial sustainability.
Healthy operational surplus in all reported periods, with revenues consistently exceeding expenses (e.g., $10,726,233 revenue vs. $10,016,278 expenses in 2023).
Significant asset growth, from $1,989,043 in 2014 to $23,301,034 in 2023, indicating investment in organizational capacity.
No reported officer compensation, potentially indicating efficient use of funds for program delivery or reliance on volunteer leadership.

Spending Breakdown

How Scottsdale Preparatory Academy 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 Scottsdale Preparatory Academy

Is Scottsdale Preparatory Academy a legitimate charity?

Based on AI analysis of IRS 990 filings, Scottsdale Preparatory Academy (EIN: 208778703) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.

Is Scottsdale Preparatory Academy a good charity to donate to?

Scottsdale Preparatory Academy has a Mission Score of 85/100. Revenue: $11.0M. Assets: $23.3M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Scottsdale Preparatory Academy?

The Employer Identification Number (EIN) for Scottsdale Preparatory Academy is 208778703. 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 Scottsdale Preparatory Academy spend its money?

Scottsdale Preparatory Academy allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Scottsdale Preparatory Academy's tax-exempt status?

You can verify Scottsdale Preparatory Academy's tax-exempt status using EIN 208778703 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

Scottsdale Preparatory Academy demonstrates consistent financial growth, with revenue increasing from $7,042,580 in 2014 to $10,726,233 in 2023. The organization consistently operates with a surplus, as evidenced by revenues exceeding expenses in all reported periods. For instance, in 2023, revenue was $10,726,233 against expenses of $10,016,278, indicating a healthy operational margin. The significant increase in assets from $1,989,043 in 2014 to $23,301,034 in 2023, particularly the jump from $7,216,437 in 2022 to $23,301,034 in 2023, suggests substantial capital investments or asset acquisition, which warrants further investigation into the nature of these assets and their funding. The corresponding increase in liabilities from $2,276,189 to $17,493,360 in the same period indicates that a significant portion of this asset growth is likely debt-financed.

The organization's spending efficiency appears strong, with expenses consistently below revenue. The NTEE code B29 indicates a focus on elementary and secondary education, and without a detailed breakdown of program vs. administrative expenses, it's challenging to precisely assess program spending efficiency. However, the consistent operational surplus suggests effective management of resources. The reported 0% officer compensation across all filings is a notable aspect of its financial structure, implying that top leadership may be compensated through other means or that the organization relies heavily on volunteer leadership, which could be a strength in terms of resource allocation.

Transparency is generally good given the availability of 990 filings. However, the lack of reported officer compensation on the 990s could be a point of inquiry for a deeper understanding of executive remuneration practices. The substantial increase in assets and liabilities in the most recent period, while not necessarily a red flag, does highlight an area where more detailed financial notes would enhance transparency regarding the organization's long-term financial strategy and capital structure.

Is Scottsdale Preparatory Academy Legit?

Verdict: Scottsdale Preparatory Academy appears trustworthy

Red Flags