Quick charity verification for Zenith Academy (EIN: 20727198)
Verdict: Zenith Academy appears trustworthy
75/100Mission Score
$9.2MRevenue
$10.6MAssets
3Red Flags
3Strengths
Red Flags
Consistent negative net asset position (liabilities exceed assets)
Lack of detailed functional expense breakdown to verify program spending efficiency
Unclear reporting of executive compensation, despite 0% officer comp
Strengths
Strong and consistent revenue growth over the past decade (from $4.2M in 2014 to $9.1M in 2023)
Generally positive operating margins in recent years (revenue exceeding expenses)
Significant asset growth over time (from $1.7M in 2014 to $10.5M in 2023)
Spending Breakdown
How Zenith Academy allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
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 Zenith Academy
Is Zenith Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Zenith Academy (EIN: 20727198) appears trustworthy. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
Is Zenith Academy a good charity to donate to?
Zenith Academy has a Mission Score of 75/100. Revenue: $9.2M. Assets: $10.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Zenith Academy?
The Employer Identification Number (EIN) for Zenith Academy is 20727198. 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 Zenith Academy spend its money?
Zenith Academy allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Zenith Academy's tax-exempt status?
You can verify Zenith Academy's tax-exempt status using EIN 20727198 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
Zenith Academy demonstrates a consistent pattern of revenue growth over the past decade, with revenue increasing from $4.2 million in 2014 to over $9.1 million in 2023. This growth is generally accompanied by a healthy surplus, as seen in 2023 where revenue of $9,110,676 exceeded expenses of $8,740,822. However, a notable concern is the organization's liabilities consistently exceeding its assets. For instance, in 2023, assets were $10,355,891 while liabilities stood at $11,582,505, indicating a negative net asset position. This trend has been present for several years, suggesting a reliance on debt or deferred revenue that warrants closer examination.
Regarding spending efficiency, without a detailed functional expense breakdown, it's challenging to precisely assess program versus administrative and fundraising costs. However, the consistent positive operating margin (revenue exceeding expenses) in most recent years suggests effective management of overall expenditures relative to income. The absence of reported officer compensation across all filings is a significant transparency point, indicating either a fully volunteer leadership or compensation being reported under other categories, which would require further clarification for complete transparency.
Overall, Zenith Academy appears financially stable in terms of generating revenue and managing operational expenses, but its long-term financial health is clouded by the persistent negative net asset position. While revenue growth is strong, the liability structure needs to be understood to fully assess its financial resilience and sustainability. The lack of reported officer compensation is a positive indicator of cost control or a unique operational model, but also a point that could benefit from more explicit disclosure regarding leadership remuneration.