Arete Preparatory Academy
Arete Preparatory Academy shows strong revenue growth and significant asset expansion, with no reported officer compensation.
EIN: 205332933 · Phoenix, AZ · NTEE: B29 · Updated: 2026-03-28
| Metric | Value |
|---|---|
| Total Revenue | $6.8M |
| Total Expenses | $6.5M |
| Program Spending | 85% |
| CEO/Top Officer Pay | $6 |
| Net Assets | $1.8M |
| Transparency Score | 85/100 |
Is Arete Preparatory Academy Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Arete Preparatory Academy directs 85% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Arete Preparatory Academy
Arete Preparatory Academy (EIN: 205332933) is a nonprofit organization based in Phoenix, AZ, classified under NTEE code B29. The organization reported total revenue of $6.8M and total assets of $10.3M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Arete Preparatory Academy's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Arete Preparatory Academy is a mid-size nonprofit that has been operating for 19 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of 8.6%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $6.8M |
| Total Expenses | $6.5M |
| Surplus / Deficit | +$281K |
| Total Assets | $10.3M |
| Total Liabilities | $8.5M |
| Net Assets | $1.8M |
| Operating Margin | 4.2% |
| Debt-to-Asset Ratio | 82.7% |
| Months of Reserves | 19.1 months |
Financial Health Grade: A
In 2023, Arete Preparatory Academy reported a surplus of $281K with revenue exceeding expenses, holds 19.1 months of operating reserves (strong position), has a debt-to-asset ratio of 82.7% (high leverage).
Financial Trends
Over 13 years of filings (2011–2023), Arete Preparatory Academy's revenue has grown at a compound annual growth rate (CAGR) of 8.6%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +15.3% | +13.7% | +480.9% |
| 2022 | +7.2% | +4.8% | -4.4% |
| 2021 | +8.0% | +7.3% | +20.4% |
| 2020 | -1.4% | -0.3% | +3.2% |
| 2019 | +0.4% | -0.5% | -6.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 2007 |
Classification data from ProPublica Nonprofit Explorer. Additional BMF data may be available after enrichment.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Arete Preparatory Academy with a Mission Score of 85 out of 100 (Excellent). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 10%
- programs: 85%
- fundraising: 5%
According to IRS 990 filings, Arete Preparatory Academy allocates its expenses as follows: admin: 10%, programs: 85%, fundraising: 5%. With 85% directed toward programs, this reflects a strong commitment to its charitable mission.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a surplus of $281K, with revenue exceeding expenses.
- Debt-to-asset ratio: 82.7%.
Executive Compensation Analysis
The organization consistently reports 0% officer compensation across all available filings, which is highly unusual for an entity with annual revenues exceeding $6 million and suggests either volunteer leadership or compensation structured in a way not reported as officer compensation on the 990.
Executive compensation data is sourced from IRS 990 filings, which require nonprofits to disclose the compensation of officers, directors, trustees, and key employees. NonprofitSpending analyzes this data relative to the organization's total revenue and sector benchmarks to assess whether executive pay is reasonable.
Red Flags
The following concerns were identified during AI analysis of Arete Preparatory Academy's IRS 990 filings:
- Dramatic increase in liabilities in 202306 without clear explanation in summary data
- Consistent 0% officer compensation for an organization of this size, which is atypical and may obscure actual executive remuneration.
Strengths
The following positive indicators were identified for Arete Preparatory Academy:
- Consistent revenue growth over the past decade, from $3.55M in 201406 to $6.77M in 202306.
- Maintains an operating surplus in most periods, indicating sound financial management.
- Significant asset growth to over $10 million in 202306, suggesting substantial investment in its mission.
- No reported officer compensation, indicating a potential commitment to minimizing administrative overhead.
Frequently Asked Questions about Arete Preparatory Academy
Is Arete Preparatory Academy a legitimate charity?
Arete Preparatory Academy (EIN: 205332933) is a registered tax-exempt nonprofit based in Arizona. Our AI analysis gives it a Mission Score of 85/100. It has 13 years of IRS 990 filings on record. Total revenue: $6.8M. 2 red flags identified. 4 strengths noted. Financial health grade: A.
How does Arete Preparatory Academy spend its money?
Arete Preparatory Academy directs 85% of its spending to programs and services. Fundraising costs 5%. This exceeds the 65% industry benchmark.
Are donations to Arete Preparatory Academy tax-deductible?
Arete Preparatory Academy is registered as a tax-exempt nonprofit (EIN: 205332933). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How much does the Arete Preparatory Academy CEO make?
Arete Preparatory Academy's highest-compensated officer earns $6 annually. The organization reported $6.8M in total revenue. Executive compensation data is disclosed in IRS 990 filings.
What percentage of Arete Preparatory Academy's spending goes to programs?
Arete Preparatory Academy directs 85% to programs, 5% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
How does Arete Preparatory Academy compare to similar nonprofits?
With a transparency score of 85/100 (Excellent), Arete Preparatory Academy is above average for NTEE category B29 nonprofits. The score reflects financial transparency, program spending efficiency, and governance quality based on IRS 990 data.
Where is Arete Preparatory Academy located?
Arete Preparatory Academy is headquartered in Phoenix, Arizona and files with the IRS under EIN 205332933. It is classified under NTEE code B29.
How many years of IRS 990 filings does Arete Preparatory Academy have?
Arete Preparatory Academy has 13 years of IRS 990 filings on record at NonprofitSpending. This extensive filing history provides a strong basis for evaluating long-term financial trends. The most recent filing shows $6.8M in total revenue.
Is Arete Preparatory Academy a good charity?
Based on the available IRS 990 data, Arete Preparatory Academy appears to be a financially healthy and efficient organization. It consistently generates surpluses, has shown significant asset growth, and reports 0% officer compensation, which are positive indicators for a charity focused on its mission.
What caused the substantial increase in assets and liabilities in the 202306 period?
The IRS 990 data shows a dramatic increase in assets from $1,776,122 in 202206 to $10,317,735 in 202306, accompanied by a rise in liabilities from $315,167 to $8,534,669. This strongly suggests a major capital expenditure, likely for property, plant, and equipment, possibly for new facilities or expansion given its educational mission.
How does Arete Preparatory Academy fund its operations without reporting officer compensation?
The consistent reporting of 0% officer compensation on the 990s is unusual for an organization of this size. It could indicate that executive leadership is entirely volunteer-based, compensated through a related organization, or that compensation is categorized differently within the 990, warranting further inquiry into their compensation practices.
Is the organization financially stable given the large increase in liabilities?
While liabilities increased significantly to $8,534,669 in 202306, this was offset by an even larger increase in assets to $10,317,735, maintaining a positive net asset position. The organization also consistently generates operating surpluses, suggesting it can manage its debt obligations.
Filing History
IRS 990 filing history for Arete Preparatory Academy showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Arete Preparatory Academy's revenue has grown by 169%, moving from $2.5M to $6.8M. Total assets increased by 1679.6% over the same period, from $580K to $10.3M. Total functional expenses rose by 164.2%, from $2.5M to $6.5M. In its most recent filing year (2023), Arete Preparatory Academy reported a surplus of $281K, with revenue exceeding expenses. The organization holds $8.5M in liabilities against $10.3M in assets (debt-to-asset ratio: 82.7%), resulting in net assets of $1.8M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $6.8M | $6.5M | $10.3M | $8.5M | — | View 990 |
| 2022 | $5.9M | $5.7M | $1.8M | $315K | — | View 990 |
| 2021 | $5.5M | $5.4M | $1.9M | $470K | — | View 990 |
| 2020 | $5.1M | $5.1M | $1.5M | $234K | — | View 990 |
| 2019 | $5.1M | $5.1M | $1.5M | $211K | — | View 990 |
| 2018 | $5.1M | $5.1M | $1.6M | $390K | — | View 990 |
| 2017 | $4.7M | $4.6M | $1.5M | $309K | — | View 990 |
| 2016 | $4.7M | $4.5M | $1.5M | $435K | — | View 990 |
| 2015 | $4.1M | $4.1M | $1.2M | $387K | — | View 990 |
| 2014 | $3.6M | $3.4M | $1.1M | $373K | — | View 990 |
| 2013 | $3.2M | $2.9M | $904K | $309K | — | View 990 |
| 2012 | $2.9M | $2.8M | $648K | $296K | — | View 990 |
| 2011 | $2.5M | $2.5M | $580K | $312K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $6.8M, expenses of $6.5M, and assets of $10.3M (revenue +15.3% year-over-year).
- 2022: Revenue of $5.9M, expenses of $5.7M, and assets of $1.8M (revenue +7.2% year-over-year).
- 2021: Revenue of $5.5M, expenses of $5.4M, and assets of $1.9M (revenue +8.0% year-over-year).
- 2020: Revenue of $5.1M, expenses of $5.1M, and assets of $1.5M (revenue -1.4% year-over-year).
- 2019: Revenue of $5.1M, expenses of $5.1M, and assets of $1.5M (revenue +0.4% year-over-year).
- 2018: Revenue of $5.1M, expenses of $5.1M, and assets of $1.6M (revenue +8.9% year-over-year).
- 2017: Revenue of $4.7M, expenses of $4.6M, and assets of $1.5M (revenue +0.8% year-over-year).
- 2016: Revenue of $4.7M, expenses of $4.5M, and assets of $1.5M (revenue +12.7% year-over-year).
- 2015: Revenue of $4.1M, expenses of $4.1M, and assets of $1.2M (revenue +16.7% year-over-year).
- 2014: Revenue of $3.6M, expenses of $3.4M, and assets of $1.1M (revenue +11.2% year-over-year).
- 2013: Revenue of $3.2M, expenses of $2.9M, and assets of $904K (revenue +10.8% year-over-year).
- 2012: Revenue of $2.9M, expenses of $2.8M, and assets of $648K (revenue +14.4% year-over-year).
- 2011: Revenue of $2.5M, expenses of $2.5M, and assets of $580K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Arete Preparatory Academy:
Data Sources and Methodology
This transparency report for Arete Preparatory Academy is generated by NonprofitSpending's AI analysis engine. The data is sourced from publicly available IRS 990 filings accessed through the ProPublica Nonprofit Explorer API and IRS electronic filing records. The Mission Score, spending breakdown, and other analytical insights are produced by artificial intelligence and should be used as one of multiple factors when evaluating a nonprofit organization.
IRS 990 forms are annual information returns that most tax-exempt organizations must file with the IRS. These forms provide detailed financial information including revenue, expenses, assets, liabilities, and compensation of officers. NonprofitSpending processes this data to provide accessible transparency reports for donors, researchers, and the general public.
Disclaimer
AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.