Quick charity verification for Seven Hills Preparatory Academy (EIN: 203107105)
Verdict: Seven Hills Preparatory Academy appears trustworthy
75/100Mission Score
$17.8MRevenue
$9.4MAssets
2Red Flags
3Strengths
Red Flags
Consistent negative net asset position (liabilities exceeding assets), e.g., $14.8M liabilities vs. $11.0M assets in 2023.
0% reported officer compensation for an organization with over $16 million in annual revenue, which is atypical and may obscure compensation structures.
Strengths
Strong and consistent revenue growth over the past decade, from $4.8M in 2014 to $16.4M in 2023.
High operational efficiency, with expenses closely tracking revenue (e.g., $16.2M expenses vs. $16.4M revenue in 2023).
Consistent filing of IRS Form 990s, indicating good transparency regarding financial operations.
Spending Breakdown
How Seven Hills Preparatory 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 Seven Hills Preparatory Academy
Is Seven Hills Preparatory Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Seven Hills Preparatory Academy (EIN: 203107105) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is Seven Hills Preparatory Academy a good charity to donate to?
Seven Hills Preparatory Academy has a Mission Score of 75/100. Revenue: $17.8M. Assets: $9.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Seven Hills Preparatory Academy?
The Employer Identification Number (EIN) for Seven Hills Preparatory Academy is 203107105. 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 Seven Hills Preparatory Academy spend its money?
Seven Hills Preparatory Academy allocates 90% to programs, 7% to administration, and 3% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Seven Hills Preparatory Academy's tax-exempt status?
You can verify Seven Hills Preparatory Academy's tax-exempt status using EIN 203107105 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
Seven Hills Preparatory Academy demonstrates consistent financial growth, with revenue increasing from $4.8 million in 2014 to over $16.4 million in 2023. The organization consistently spends nearly all of its revenue on expenses, indicating a focus on program delivery rather than accumulating large reserves. For instance, in 2023, expenses were $16,219,727 against revenues of $16,407,918, showing a high operational efficiency. However, the organization carries significant liabilities, which have consistently exceeded its assets in recent years. In 2023, liabilities were $14,870,078 compared to assets of $11,016,543, suggesting a reliance on debt or other long-term obligations to finance operations or assets. This financial structure warrants closer examination to understand its long-term sustainability.
The academy's spending efficiency appears strong, with expenses closely tracking revenue. The absence of reported officer compensation across all filings is a notable aspect of its financial structure, suggesting that top leadership may be compensated through other means or that the organization relies heavily on volunteer leadership, which could contribute to lower administrative costs. The consistent growth in revenue and expenses over a decade indicates a growing and active organization. However, the persistent negative net asset position (liabilities exceeding assets) is a key area for potential concern regarding financial stability.
Transparency is generally good given the consistent filing of IRS Form 990s. The detailed financial data provided in these filings allows for a clear understanding of the organization's revenue, expenses, and asset/liability positions. The lack of reported officer compensation, while potentially a strength in terms of cost efficiency, could also raise questions about how leadership is structured and compensated if not through traditional salaries reported on the 990.