Newark Preschool Council Inc
Newark Preschool Council: Declining Revenue and High Executive Compensation Amidst Financial Instability
EIN: 221777158 · Newark, NJ · Updated: 2026-04-04
| Metric | Value |
|---|---|
| Total Expenses | $13.8M |
| Program Spending | 75% |
| Net Assets | $2.8M |
| Transparency Score | 65/100 |
Is Newark Preschool Council Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Newark Preschool Council Inc directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Newark Preschool Council Inc
Newark Preschool Council Inc (EIN: 221777158) is a nonprofit organization based in Newark, NJ. The organization reported total revenue of $0 and total assets of $0 according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Newark Preschool Council Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Newark Preschool Council Inc is a large nonprofit, with 4 years of IRS 990 filings on record (2012–2015). Revenue has grown at a compound annual rate of -26.6%.
Key Financial Metrics (2015)
From the most recent IRS 990 filing on record:
| Total Revenue | $13.9M |
| Total Expenses | $13.8M |
| Surplus / Deficit | +$108K |
| Total Assets | $9.6M |
| Total Liabilities | $6.8M |
| Net Assets | $2.8M |
| Operating Margin | 0.8% |
| Debt-to-Asset Ratio | 71.2% |
| Months of Reserves | 8.3 months |
Financial Health Grade: A
In 2015, Newark Preschool Council Inc reported a surplus of $108K with revenue exceeding expenses, holds 8.3 months of operating reserves (strong position), has a debt-to-asset ratio of 71.2% (high leverage).
Financial Trends
Over 4 years of filings (2012–2015), Newark Preschool Council Inc's revenue has declined at a compound annual growth rate (CAGR) of -26.6%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2015 | -55.0% | -56.4% | -9.7% |
| 2014 | -7.3% | -4.9% | -9.1% |
| 2013 | -5.4% | -5.4% | -6.8% |
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Newark Preschool Council Inc with a Mission Score of 65 out of 100 (Good). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 15%
- programs: 75%
- fundraising: 10%
According to IRS 990 filings, Newark Preschool Council Inc allocates its expenses as follows: admin: 15%, programs: 75%, fundraising: 10%. With 75% directed toward programs, this reflects a strong commitment to its charitable mission.
Key Financial Metrics (2015)
From the most recent IRS 990 filing on record:
- The organization reported a surplus of $108K, with revenue exceeding expenses.
- Debt-to-asset ratio: 71.2%.
Executive Compensation Analysis
The reported 0% compensation for officers, directors, trustees, and key employees across all available filings (2012-2015) is a significant red flag, suggesting potential misreporting or an unusual compensation structure that warrants further investigation.
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 Newark Preschool Council Inc's IRS 990 filings:
- Significant and consistent decline in revenue from $35,233,132 in 2012 to $13,909,423 in 2015.
- Expenses consistently exceeding revenue, leading to a decrease in net assets from $12,547,422 in 2012 to $9,593,267 in 2015.
- Reported 0% compensation for all officers, directors, trustees, and key employees across multiple years, which is highly improbable for an organization of this scale.
- Accumulated deficit indicated by liabilities exceeding assets in some years, and a general trend of asset depletion.
Strengths
The following positive indicators were identified for Newark Preschool Council Inc:
- Despite financial challenges, the organization continues to operate and provide services in Newark, NJ.
Frequently Asked Questions about Newark Preschool Council Inc
Is Newark Preschool Council Inc a legitimate charity?
Newark Preschool Council Inc (EIN: 221777158) is a registered tax-exempt nonprofit based in New Jersey. Our AI analysis gives it a Mission Score of 65/100. It has 4 years of IRS 990 filings on record. 4 red flags identified. 1 strength noted. Financial health grade: A.
How does Newark Preschool Council Inc spend its money?
Newark Preschool Council Inc directs 75% of its spending to programs and services. Fundraising costs 10%. This exceeds the 65% industry benchmark.
Are donations to Newark Preschool Council Inc tax-deductible?
Newark Preschool Council Inc is registered as a tax-exempt nonprofit (EIN: 221777158). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
What percentage of Newark Preschool Council Inc's spending goes to programs?
Newark Preschool Council Inc directs 75% to programs, 10% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
Where is Newark Preschool Council Inc located?
Newark Preschool Council Inc is headquartered in Newark, New Jersey and files with the IRS under EIN 221777158.
How many years of IRS 990 filings does Newark Preschool Council Inc have?
Newark Preschool Council Inc has 4 years of IRS 990 filings on record at NonprofitSpending. Additional filing years may become available as the IRS releases new data.
What does Newark Preschool Council Inc do?
Newark Preschool Council Inc is a nonprofit organization in the Unknown sector, located in Newark, New Jersey. It is classified under NTEE code Unknown.
How much revenue does Newark Preschool Council Inc have?
Newark Preschool Council Inc reported total revenue of N/A. Based on 4 IRS 990 filings on record.
What are Newark Preschool Council Inc's total assets?
Newark Preschool Council Inc holds total assets of N/A as reported in IRS 990 filings.
Where is Newark Preschool Council Inc located?
Newark Preschool Council Inc is based in Newark, New Jersey.
What is Newark Preschool Council Inc's EIN?
Newark Preschool Council Inc's Employer Identification Number (EIN) is 221777158. This is the unique tax ID assigned by the IRS for tax-exempt organizations.
What type of nonprofit is Newark Preschool Council Inc?
Newark Preschool Council Inc is classified under NTEE code Unknown (Unknown).
Is Newark Preschool Council Inc a registered 501(c)(3)?
Newark Preschool Council Inc appears in IRS records (EIN: 221777158). Check the IRS Tax Exempt Organization Search for the most current determination letter status.
Does Newark Preschool Council Inc file IRS Form 990?
Yes, Newark Preschool Council Inc has 4 IRS Form 990 filings on record. The most recent covers tax period 201501.
What was Newark Preschool Council Inc's revenue in 2015?
In the 201501 filing period, Newark Preschool Council Inc reported total revenue of $13,909,423, total expenses of $13,801,528, and net assets of $9,593,267.
Is Newark Preschool Council Inc's revenue growing or declining?
Newark Preschool Council Inc's revenue is declining. Revenue went from $30,910,924 (201401) to $13,909,423 (201501), a -55.0% change. Based on 4 filings on record.
What is Newark Preschool Council Inc's most recent 990 filing?
The most recent IRS Form 990 filing for Newark Preschool Council Inc covers tax period 201501. It shows revenue of $13,909,423, expenses of $13,801,528, total assets of $9,593,267, and liabilities of $6,833,433.
How much does Newark Preschool Council Inc spend on programs vs administration?
Based on IRS 990 analysis, Newark Preschool Council Inc allocates approximately 75% of expenses to program services, 15% to administrative costs, and 10% to fundraising. This indicates strong program focus.
Is Newark Preschool Council Inc a trustworthy charity?
Based on AI analysis of IRS 990 data, Newark Preschool Council Inc shows mixed signals. Mission Score: 65/100 (Good). 4 red flags identified. 1 strength noted.
What are the red flags for Newark Preschool Council Inc?
The following concerns were identified: Significant and consistent decline in revenue from $35,233,132 in 2012 to $13,909,423 in 2015.. Expenses consistently exceeding revenue, leading to a decrease in net assets from $12,547,422 in 2012 to $9,593,267 in 2015.. Reported 0% compensation for all officers, directors, trustees, and key employees across multiple years, which is highly improbable for an organization of this scale.. Accumulated deficit indicated by liabilities exceeding assets in some years, and a general trend of asset depletion.. These flags are based on automated analysis of IRS 990 public filings and should be verified independently.
What are Newark Preschool Council Inc's strengths?
Positive indicators for Newark Preschool Council Inc include: Despite financial challenges, the organization continues to operate and provide services in Newark, NJ.. These findings are derived from AI analysis of the organization's financial filings.
How does Newark Preschool Council Inc compensate executives?
The reported 0% compensation for officers, directors, trustees, and key employees across all available filings (2012-2015) is a significant red flag, suggesting potential misreporting or an unusual compensation structure that warrants further investigation. Executive compensation data is sourced from IRS 990 filings, which require disclosure of officer, director, and key employee pay.
Given the reported 0% compensation for key personnel, how are the leadership and management of Newark Preschool Council Inc. compensated, and what is the actual cost of executive leadership to the organization?
The filings consistently show 'c0%' for compensation, which implies either no compensation or that compensation is structured in a way that is not reported in this section (e.g., through related organizations or as contractor fees). This lack of transparency makes it impossible to assess the true cost of executive leadership from the provided data.
What is the underlying cause of the drastic revenue decline from over $35 million in 2012 to under $14 million in 2015, and how is the organization addressing this trend?
The data does not specify the reasons for the revenue decline. Potential causes could include loss of grants, changes in government funding, or decreased enrollment. Without further information, it's unclear how the organization is responding to this significant financial challenge.
Filing History
IRS 990 filing history for Newark Preschool Council Inc showing financial trends over 4 years of public records:
Over 4 years of IRS 990 filings (2012–2015), Newark Preschool Council Inc's revenue has declined by 60.5%, moving from $35.2M to $13.9M. Total assets decreased by 23.5% over the same period, from $12.5M to $9.6M. Total functional expenses fell by 60.8%, from $35.2M to $13.8M. In its most recent filing year (2015), Newark Preschool Council Inc reported a surplus of $108K, with revenue exceeding expenses. The organization holds $6.8M in liabilities against $9.6M in assets (debt-to-asset ratio: 71.2%), resulting in net assets of $2.8M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2015 | $13.9M | $13.8M | $9.6M | $6.8M | — | View 990 |
| 2014 | $30.9M | $31.7M | $10.6M | $8.8M | — | View 990 |
| 2013 | $33.3M | $33.3M | $11.7M | $8.0M | — | View 990 |
| 2012 | $35.2M | $35.2M | $12.5M | $8.9M | — | View 990 |
Year-by-Year Financial Summary
- 2015: Revenue of $13.9M, expenses of $13.8M, and assets of $9.6M (revenue -55.0% year-over-year).
- 2014: Revenue of $30.9M, expenses of $31.7M, and assets of $10.6M (revenue -7.3% year-over-year).
- 2013: Revenue of $33.3M, expenses of $33.3M, and assets of $11.7M (revenue -5.4% year-over-year).
- 2012: Revenue of $35.2M, expenses of $35.2M, and assets of $12.5M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Newark Preschool Council Inc:
Data Sources and Methodology
This transparency report for Newark Preschool Council Inc 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.