Potential Inc
Potential Inc. shows consistent revenue growth and strong program spending with no reported officer compensation.
EIN: 202585393 · Newtown, PA · NTEE: P20 · Updated: 2026-03-28
Is Potential Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Potential Inc directs 85% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Potential Inc
Potential Inc (EIN: 202585393) is a nonprofit organization based in Newtown, PA, classified under NTEE code P20. The organization reported total revenue of $7.0M and total assets of $1.5M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Potential Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Potential Inc with a Mission Score of 88 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, Potential Inc 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.
Executive Compensation Analysis
Potential Inc. consistently reports 0% officer compensation across all available IRS 990 filings, which is highly unusual for an organization of its size with nearly $6 million in annual revenue. This suggests either a fully volunteer executive leadership or that compensation is reported under different categories, which could impact the overall transparency of executive remuneration.
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 Potential Inc's IRS 990 filings:
- Consistent 0% officer compensation reported, which is unusual for an organization of this scale and may obscure actual executive remuneration.
Strengths
The following positive indicators were identified for Potential Inc:
- Consistent revenue growth over the past decade, from $1.6M in 2014 to $5.9M in 2023.
- Strong program spending ratio, indicating a high percentage of funds directly supporting its mission.
- Positive net income in the latest filing (2023), demonstrating financial stability.
- Significant asset growth over time, building organizational capacity and reserves.
Frequently Asked Questions about Potential Inc
Is Potential Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Potential Inc (EIN: 202585393) some concerns. Mission Score: 88/100. 1 red flag identified, 4 strengths noted.
How does Potential Inc spend its money?
Potential Inc directs 85% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Potential Inc tax-deductible?
Potential Inc is registered as a tax-exempt nonprofit (EIN: 202585393). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is Potential Inc. a good charity?
Based on its strong program spending, consistent revenue growth, and reported 0% officer compensation, Potential Inc. appears to be a good charity with a clear focus on its mission. However, the lack of reported officer compensation warrants further inquiry for complete transparency.
How has Potential Inc.'s revenue grown over time?
Potential Inc. has shown significant revenue growth, increasing from $1,658,902 in 2014 to $5,912,726 in 2023, demonstrating a strong upward trend in financial support.
What is the organization's financial health?
Potential Inc. exhibits generally good financial health, with growing assets ($744,030 in 2023) and a positive net income in its latest filing ($5,912,726 revenue vs. $5,703,167 expenses in 2023), indicating a sustainable operational model despite some past deficit years.
Does Potential Inc. spend efficiently on its programs?
Yes, Potential Inc. appears to spend efficiently on its programs, as evidenced by its strong program spending ratio (estimated at 85%), which is a positive indicator of mission focus.
Filing History
IRS 990 filing history for Potential Inc showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Potential Inc's revenue has grown by 1058.9%, moving from $510K to $5.9M. Total assets increased by 3327.1% over the same period, from $22K to $744K. Total functional expenses rose by 1031.3%, from $504K to $5.7M. In its most recent filing year (2023), Potential Inc reported a surplus of $210K, with revenue exceeding expenses. The organization holds $632K in liabilities against $744K in assets (debt-to-asset ratio: 84.9%), resulting in net assets of $112K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. | |
|---|---|---|---|---|---|---|
| 2023 | $5.9M | $5.7M | $744K | $632K | — | — |
| 2022 | $4.5M | $4.9M | $1.2M | $1.3M | — | View 990 |
| 2021 | $3.7M | $4.3M | $1.2M | $980K | — | View 990 |
| 2020 | $4.3M | $4.2M | $1.6M | $666K | — | — |
| 2019 | $3.6M | $3.2M | $1.3M | $421K | — | View 990 |
| 2018 | $2.9M | $2.8M | $940K | $444K | — | View 990 |
| 2017 | $2.3M | $2.2M | $690K | $375K | — | — |
| 2016 | $1.9M | $1.9M | $497K | $339K | — | View 990 |
| 2015 | $1.8M | $1.7M | $486K | $415K | — | View 990 |
| 2014 | $1.7M | $1.7M | $122K | $247K | — | View 990 |
| 2013 | $1.3M | $1.4M | $23K | $122K | — | View 990 |
| 2012 | $1.1M | $1.1M | $80K | $64K | — | View 990 |
| 2011 | $510K | $504K | $22K | $82K | — | — |
Year-by-Year Financial Summary
- 2023: Revenue of $5.9M, expenses of $5.7M, and assets of $744K (revenue +30.1% year-over-year).
- 2022: Revenue of $4.5M, expenses of $4.9M, and assets of $1.2M (revenue +24.3% year-over-year).
- 2021: Revenue of $3.7M, expenses of $4.3M, and assets of $1.2M (revenue -14.9% year-over-year).
- 2020: Revenue of $4.3M, expenses of $4.2M, and assets of $1.6M (revenue +20.4% year-over-year).
- 2019: Revenue of $3.6M, expenses of $3.2M, and assets of $1.3M (revenue +21.5% year-over-year).
- 2018: Revenue of $2.9M, expenses of $2.8M, and assets of $940K (revenue +26.9% year-over-year).
- 2017: Revenue of $2.3M, expenses of $2.2M, and assets of $690K (revenue +19.0% year-over-year).
- 2016: Revenue of $1.9M, expenses of $1.9M, and assets of $497K (revenue +10.5% year-over-year).
- 2015: Revenue of $1.8M, expenses of $1.7M, and assets of $486K (revenue +6.2% year-over-year).
- 2014: Revenue of $1.7M, expenses of $1.7M, and assets of $122K (revenue +28.5% year-over-year).
- 2013: Revenue of $1.3M, expenses of $1.4M, and assets of $23K (revenue +13.2% year-over-year).
- 2012: Revenue of $1.1M, expenses of $1.1M, and assets of $80K (revenue +123.4% year-over-year).
- 2011: Revenue of $510K, expenses of $504K, and assets of $22K.
Data Sources and Methodology
This transparency report for Potential 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.