Practice Transformation Institute
Practice Transformation Institute faces recurring deficits despite consistent revenue generation.
EIN: 208851734 · Rochester Hls, MI · NTEE: B03 · Updated: 2026-03-28
Is Practice Transformation Institute Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Practice Transformation Institute directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Practice Transformation Institute
Practice Transformation Institute (EIN: 208851734) is a nonprofit organization based in Rochester Hls, MI, classified under NTEE code B03. The organization reported total revenue of $481K and total assets of $47K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Practice Transformation Institute'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 Practice Transformation Institute 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, Practice Transformation Institute 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.
Executive Compensation Analysis
Executive compensation is reported as 0% across all available filings, indicating that officers are not drawing salaries from the organization, which is a positive sign for resource allocation relative to the organization's size and revenue.
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 Practice Transformation Institute's IRS 990 filings:
- Recurring significant deficits (e.g., 2022: $405,476 deficit; 2023: $143,867 deficit)
- Volatile asset base, with a substantial decline from 2021 to 2023
- Low current assets ($47,277) relative to annual expenses (e.g., $621,727 in 2023)
Strengths
The following positive indicators were identified for Practice Transformation Institute:
- Consistent IRS 990 filing history, indicating transparency
- 0% officer compensation reported across all years, suggesting efficient use of funds at the executive level
- History of generating over $400,000 in revenue in most years, demonstrating program activity
Frequently Asked Questions about Practice Transformation Institute
Is Practice Transformation Institute a legitimate charity?
Based on AI analysis of IRS 990 filings, Practice Transformation Institute (EIN: 208851734) some concerns. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
How does Practice Transformation Institute spend its money?
Practice Transformation Institute directs 75% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Practice Transformation Institute tax-deductible?
Practice Transformation Institute is registered as a tax-exempt nonprofit (EIN: 208851734). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Why did expenses significantly exceed revenue in 2022 and 2023?
In 2022, expenses were $566,832 against revenue of $161,356, and in 2023, expenses were $621,727 against revenue of $477,860. This consistent deficit raises questions about financial planning and sustainability.
What caused the substantial fluctuation in assets, from $598,690 in 2021 to $43,314 in 2023?
The significant drop in assets over a short period suggests either substantial asset utilization, divestment, or financial losses that warrant further investigation into the organization's financial management.
How does the organization plan to address its recurring deficits?
With expenses frequently exceeding revenue, particularly in recent years, understanding the organization's strategy for achieving financial stability is crucial.
Filing History
IRS 990 filing history for Practice Transformation Institute showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Practice Transformation Institute's revenue has grown by 863.7%, moving from $50K to $478K. Total assets increased by 794.5% over the same period, from $5K to $43K. Total functional expenses rose by 356.4%, from $136K to $622K. In its most recent filing year (2023), Practice Transformation Institute reported a deficit of $144K, with expenses exceeding revenue. The organization holds $3K in liabilities against $43K in assets (debt-to-asset ratio: 7.3%), resulting in net assets of $40K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. | |
|---|---|---|---|---|---|---|
| 2023 | $478K | $622K | $43K | $3K | — | — |
| 2022 | $161K | $567K | $195K | $11K | — | View 990 |
| 2021 | $792K | $514K | $599K | $9K | — | View 990 |
| 2020 | $604K | $500K | $396K | $84K | — | View 990 |
| 2019 | $643K | $451K | $225K | $17K | — | View 990 |
| 2018 | $628K | $475K | $33K | $17K | — | View 990 |
| 2017 | $441K | $449K | $36K | $173K | — | — |
| 2016 | $629K | $435K | $22K | $152K | — | View 990 |
| 2015 | $482K | $430K | $26K | $349K | — | View 990 |
| 2014 | $649K | $571K | $14K | $388K | — | View 990 |
| 2013 | $643K | $680K | $13K | $466K | — | View 990 |
| 2012 | $92K | $288K | $22K | $438K | — | View 990 |
| 2011 | $50K | $136K | $5K | $225K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $478K, expenses of $622K, and assets of $43K (revenue +196.2% year-over-year).
- 2022: Revenue of $161K, expenses of $567K, and assets of $195K (revenue -79.6% year-over-year).
- 2021: Revenue of $792K, expenses of $514K, and assets of $599K (revenue +31.0% year-over-year).
- 2020: Revenue of $604K, expenses of $500K, and assets of $396K (revenue -6.0% year-over-year).
- 2019: Revenue of $643K, expenses of $451K, and assets of $225K (revenue +2.3% year-over-year).
- 2018: Revenue of $628K, expenses of $475K, and assets of $33K (revenue +42.4% year-over-year).
- 2017: Revenue of $441K, expenses of $449K, and assets of $36K (revenue -29.8% year-over-year).
- 2016: Revenue of $629K, expenses of $435K, and assets of $22K (revenue +30.6% year-over-year).
- 2015: Revenue of $482K, expenses of $430K, and assets of $26K (revenue -25.8% year-over-year).
- 2014: Revenue of $649K, expenses of $571K, and assets of $14K (revenue +0.9% year-over-year).
- 2013: Revenue of $643K, expenses of $680K, and assets of $13K (revenue +601.6% year-over-year).
- 2012: Revenue of $92K, expenses of $288K, and assets of $22K (revenue +84.9% year-over-year).
- 2011: Revenue of $50K, expenses of $136K, and assets of $5K.
Data Sources and Methodology
This transparency report for Practice Transformation Institute 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.