Quick charity verification for The Scholarship Academy (EIN: 203721836)
Verdict: The Scholarship Academy appears trustworthy
92/100Mission Score
$1.6MRevenue
$1.2MAssets
1Red Flags
4Strengths
Red Flags
Expenses exceeded revenue in the 202308 period ($992,446 expenses vs. $857,857 revenue), indicating a deficit for that specific year.
Strengths
Consistent 0% officer compensation across all filings, demonstrating high transparency and efficient use of funds.
Significant growth in revenue from $137,738 in 2012 to $1,561,755 currently, indicating expanding impact and fundraising success.
Substantial asset growth from $46,902 in 2012 to $1,239,117 currently, enhancing long-term financial stability.
Strong program focus implied by the lack of executive compensation, suggesting a high percentage of funds go directly to mission-related activities.
Spending Breakdown
How The Scholarship 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
5%
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 The Scholarship Academy
Is The Scholarship Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, The Scholarship Academy (EIN: 203721836) appears trustworthy. Mission Score: 92/100. 1 red flag identified, 4 strengths noted.
Is The Scholarship Academy a good charity to donate to?
The Scholarship Academy has a Mission Score of 92/100. Revenue: $1.6M. Assets: $1.2M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for The Scholarship Academy?
The Employer Identification Number (EIN) for The Scholarship Academy is 203721836. 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 The Scholarship Academy spend its money?
The Scholarship Academy allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify The Scholarship Academy's tax-exempt status?
You can verify The Scholarship Academy's tax-exempt status using EIN 203721836 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
The Scholarship Academy demonstrates a generally positive financial trajectory, with significant growth in revenue and assets over the past decade. The organization's latest reported revenue of $1,561,755 and assets of $1,239,117 indicate a substantial increase in scale. However, the most recent filing (Period 202308) shows expenses ($992,446) exceeding revenue ($857,857), resulting in a deficit for that period, which warrants monitoring. Despite this, the overall asset growth suggests a healthy financial position.
Spending efficiency appears to be a strength, with a strong focus on program services. The consistent reporting of 0% officer compensation across all available filings is a significant indicator of financial transparency and a commitment to directing funds towards the mission rather than executive salaries. This practice enhances donor confidence and suggests a lean operational model.
Transparency is excellent, particularly concerning executive compensation. The consistent growth in assets from $46,902 in 2012 to $1,239,117 currently, alongside increasing revenue, suggests effective financial management and fundraising. The organization's commitment to not paying officer compensation is a strong positive for transparency and efficiency.