Heart Christian Preparatory Academy
Heart Christian Preparatory Academy experiences rapid revenue growth with no reported officer compensation, but operates with modest assets and recent deficits.
EIN: 204508459 · San Juan Capistrano, CA · NTEE: B99 · Updated: 2026-03-28
Is Heart Christian Preparatory Academy Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Heart Christian Preparatory Academy directs 85% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Heart Christian Preparatory Academy
Heart Christian Preparatory Academy (EIN: 204508459) is a nonprofit organization based in San Juan Capistrano, CA, classified under NTEE code B99. The organization reported total revenue of $6.6M and total assets of $251K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Heart Christian Preparatory Academy's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Heart Christian Preparatory Academy is a mid-size nonprofit that has been operating for 18 years, with 11 years of IRS 990 filings on record (2012–2022). Revenue has grown at a compound annual rate of 27.1%.
Key Financial Metrics (2022)
From the most recent IRS 990 filing on record:
| Total Revenue | $4.5M |
| Total Expenses | $4.6M |
| Surplus / Deficit | $-101,105 |
| Total Assets | $399K |
| Total Liabilities | $342K |
| Net Assets | $58K |
| Operating Margin | -2.3% |
| Debt-to-Asset Ratio | 85.5% |
| Months of Reserves | 1.0 months |
Financial Health Grade: D
In 2022, Heart Christian Preparatory Academy reported a deficit of $101K with expenses exceeding revenue, holds 1.0 months of operating reserves (limited), has a debt-to-asset ratio of 85.5% (high leverage).
Financial Trends
Over 11 years of filings (2012–2022), Heart Christian Preparatory Academy's revenue has grown at a compound annual growth rate (CAGR) of 27.1%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2022 | +459.3% | +511.4% | +60.0% |
| 2021 | +50.2% | +50.1% | +45.7% |
| 2020 | -28.1% | -35.7% | +70.0% |
| 2019 | -4.4% | -7.2% | -31.8% |
| 2018 | -5.5% | +12.7% | -10.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2700 |
| IRS Ruling Date | 2008 |
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 Heart Christian 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, Heart Christian 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 (2022)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $101K, with expenses exceeding revenue.
- Debt-to-asset ratio: 85.5%.
Executive Compensation Analysis
Executive compensation is reported as 0% across all available filings, indicating that no salaries were paid to officers, directors, trustees, or key employees. This is highly unusual for an organization of its size and revenue, suggesting a strong commitment to program spending and financial efficiency.
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 Heart Christian Preparatory Academy's IRS 990 filings:
- Operating deficit in 2022 (expenses $4,576,837 exceeding revenue $4,475,732)
- Relatively low asset base ($250,921) compared to latest revenue ($6,621,849)
- Significant increase in liabilities from $92,512 in 2021 to $341,575 in 2022
Strengths
The following positive indicators were identified for Heart Christian Preparatory Academy:
- Consistent 0% officer compensation across all filings, indicating high efficiency in leadership costs.
- Significant revenue growth, particularly from 2021 to 2022, demonstrating expanding reach and impact.
- Consistent filing of IRS Form 990s over 11 periods, indicating good transparency and compliance.
- Historically low liabilities in earlier years (e.g., $0 in 2016 and 2017).
Frequently Asked Questions about Heart Christian Preparatory Academy
Is Heart Christian Preparatory Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Heart Christian Preparatory Academy (EIN: 204508459) some concerns. Mission Score: 85/100. 3 red flags identified, 4 strengths noted.
How does Heart Christian Preparatory Academy spend its money?
Heart Christian Preparatory Academy directs 85% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Heart Christian Preparatory Academy tax-deductible?
Heart Christian Preparatory Academy is registered as a tax-exempt nonprofit (EIN: 204508459). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How does Heart Christian Preparatory Academy sustain operations without officer compensation?
The filings consistently show 0% officer compensation, which is highly unusual for an organization of this scale. This suggests that leadership may be volunteer-based or compensated through other means not reported as officer compensation on the 990, or that the organization has a unique operational model.
What caused the significant revenue increase from $800,208 in 2021 to $4,475,732 in 2022?
The IRS 990 data indicates a substantial increase in revenue, likely due to increased enrollment, tuition fees, or significant grants/donations. Further investigation into the specific revenue streams reported on the 990 would clarify the exact drivers of this growth.
Is the organization's asset base of $250,921 sufficient for its latest revenue of $6,621,849?
An asset base of $250,921 is relatively low compared to the latest reported revenue of $6,621,849. This could indicate a lean operational model, reliance on immediate cash flow, or a focus on spending rather than accumulating reserves. It might also suggest that significant assets are leased rather than owned.
What is the nature of the liabilities, which increased from $92,512 in 2021 to $341,575 in 2022?
The increase in liabilities warrants further examination. It could be due to operational debts, deferred revenue, or capital expenditures. Understanding the composition of these liabilities is crucial for assessing the organization's financial risk.
Filing History
IRS 990 filing history for Heart Christian Preparatory Academy showing financial trends over 11 years of public records:
Over 11 years of IRS 990 filings (2012–2022), Heart Christian Preparatory Academy's revenue has grown by 996.9%, moving from $408K to $4.5M. Total assets increased by 304.9% over the same period, from $99K to $399K. Total functional expenses rose by 1101.6%, from $381K to $4.6M. In its most recent filing year (2022), Heart Christian Preparatory Academy reported a deficit of $101K, with expenses exceeding revenue. The organization holds $342K in liabilities against $399K in assets (debt-to-asset ratio: 85.5%), resulting in net assets of $58K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2022 | $4.5M | $4.6M | $399K | $342K | — | View 990 |
| 2021 | $800K | $749K | $250K | $93K | — | View 990 |
| 2020 | $533K | $499K | $171K | $66K | — | View 990 |
| 2019 | $742K | $775K | $101K | $30K | — | View 990 |
| 2018 | $775K | $835K | $148K | $43K | — | View 990 |
| 2017 | $821K | $741K | $164K | $0 | — | View 990 |
| 2016 | $815K | $799K | $83K | $0 | — | View 990 |
| 2015 | $745K | $750K | $87K | $0 | — | View 990 |
| 2014 | $650K | $662K | $102K | $0 | — | View 990 |
| 2013 | $504K | $487K | $102K | $0 | — | View 990 |
| 2012 | $408K | $381K | $99K | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2022: Revenue of $4.5M, expenses of $4.6M, and assets of $399K (revenue +459.3% year-over-year).
- 2021: Revenue of $800K, expenses of $749K, and assets of $250K (revenue +50.2% year-over-year).
- 2020: Revenue of $533K, expenses of $499K, and assets of $171K (revenue -28.1% year-over-year).
- 2019: Revenue of $742K, expenses of $775K, and assets of $101K (revenue -4.4% year-over-year).
- 2018: Revenue of $775K, expenses of $835K, and assets of $148K (revenue -5.5% year-over-year).
- 2017: Revenue of $821K, expenses of $741K, and assets of $164K (revenue +0.8% year-over-year).
- 2016: Revenue of $815K, expenses of $799K, and assets of $83K (revenue +9.3% year-over-year).
- 2015: Revenue of $745K, expenses of $750K, and assets of $87K (revenue +14.5% year-over-year).
- 2014: Revenue of $650K, expenses of $662K, and assets of $102K (revenue +29.1% year-over-year).
- 2013: Revenue of $504K, expenses of $487K, and assets of $102K (revenue +23.4% year-over-year).
- 2012: Revenue of $408K, expenses of $381K, and assets of $99K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Heart Christian Preparatory Academy:
Data Sources and Methodology
This transparency report for Heart Christian 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.