Preferred Children's Services Inc
Preferred Children's Services: Declining Revenue, Inconsistent Financial Reporting
EIN: 222821035 · Lakewood, NJ · Updated: 2026-04-04
| Metric | Value |
|---|---|
| Total Expenses | $9.1M |
| Program Spending | 70% |
| Net Assets | $1.1M |
| Transparency Score | 65/100 |
Is Preferred Children's Services Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Preferred Children's Services Inc directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Preferred Children's Services Inc
Preferred Children's Services Inc (EIN: 222821035) is a nonprofit organization based in Lakewood, 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 Preferred Children's Services Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Preferred Children's Services Inc is a mid-size nonprofit, with 5 years of IRS 990 filings on record (2011–2015). Revenue has grown at a compound annual rate of 0.7%.
Key Financial Metrics (2015)
From the most recent IRS 990 filing on record:
| Total Revenue | $9.1M |
| Total Expenses | $9.1M |
| Surplus / Deficit | $-27,668 |
| Total Assets | $3.3M |
| Total Liabilities | $2.2M |
| Net Assets | $1.1M |
| Operating Margin | -0.3% |
| Debt-to-Asset Ratio | 66.5% |
| Months of Reserves | 4.4 months |
Financial Health Grade: C
In 2015, Preferred Children's Services Inc reported a deficit of $28K with expenses exceeding revenue, holds 4.4 months of operating reserves (adequate), has a debt-to-asset ratio of 66.5% (high leverage).
Financial Trends
Over 5 years of filings (2011–2015), Preferred Children's Services Inc's revenue has grown at a compound annual growth rate (CAGR) of 0.7%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2015 | +100.4% | +99.7% | +20.3% |
| 2014 | -52.9% | -52.1% | -18.9% |
| 2013 | +4.0% | +3.6% | -4.4% |
| 2012 | +4.5% | +4.7% | +2.1% |
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Preferred Children's Services 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: 70%
- fundraising: 15%
According to IRS 990 filings, Preferred Children's Services Inc allocates its expenses as follows: admin: 15%, programs: 70%, fundraising: 15%. Approximately 70% goes to programs, indicating moderate mission focus.
Key Financial Metrics (2015)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $28K, with expenses exceeding revenue.
- Debt-to-asset ratio: 66.5%.
Executive Compensation Analysis
Executive compensation is reported as 0% across all available filings, which is highly unusual for an organization with significant revenue and assets, suggesting potential underreporting or alternative compensation structures.
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 Preferred Children's Services Inc's IRS 990 filings:
- Significant revenue decline from $9.59M in 2013 to $0.91M in 2015, raising concerns about sustainability.
- Reporting 0% compensation for all highest-paid employees across multiple years is a major red flag.
- Inconsistent fiscal year-end reporting (December to June) makes year-over-year comparisons difficult and raises questions about financial transparency.
- Lack of detailed information regarding program activities and their associated costs.
Strengths
The following positive indicators were identified for Preferred Children's Services Inc:
- Maintains a positive asset-to-liability ratio, indicating some financial stability despite revenue declines.
- Consistently reports assets over $2.7M, suggesting a base of resources.
Frequently Asked Questions about Preferred Children's Services Inc
Is Preferred Children's Services Inc a legitimate charity?
Preferred Children's Services Inc (EIN: 222821035) is a registered tax-exempt nonprofit based in New Jersey. Our AI analysis gives it a Mission Score of 65/100. It has 5 years of IRS 990 filings on record. 4 red flags identified. 2 strengths noted. Financial health grade: C.
How does Preferred Children's Services Inc spend its money?
Preferred Children's Services Inc directs 70% of its spending to programs and services. Fundraising costs 15%. This meets the 65% industry benchmark.
Are donations to Preferred Children's Services Inc tax-deductible?
Preferred Children's Services Inc is registered as a tax-exempt nonprofit (EIN: 222821035). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
What percentage of Preferred Children's Services Inc's spending goes to programs?
Preferred Children's Services Inc directs 70% to programs, 15% to fundraising. This meets the 65% industry benchmark for efficient nonprofits.
Where is Preferred Children's Services Inc located?
Preferred Children's Services Inc is headquartered in Lakewood, New Jersey and files with the IRS under EIN 222821035.
How many years of IRS 990 filings does Preferred Children's Services Inc have?
Preferred Children's Services Inc has 5 years of IRS 990 filings on record at NonprofitSpending. This extensive filing history provides a strong basis for evaluating long-term financial trends.
What does Preferred Children's Services Inc do?
Preferred Children's Services Inc is a nonprofit organization in the Unknown sector, located in Lakewood, New Jersey. It is classified under NTEE code Unknown.
How much revenue does Preferred Children's Services Inc have?
Preferred Children's Services Inc reported total revenue of N/A. Based on 5 IRS 990 filings on record.
What are Preferred Children's Services Inc's total assets?
Preferred Children's Services Inc holds total assets of N/A as reported in IRS 990 filings.
Where is Preferred Children's Services Inc located?
Preferred Children's Services Inc is based in Lakewood, New Jersey.
What is Preferred Children's Services Inc's EIN?
Preferred Children's Services Inc's Employer Identification Number (EIN) is 222821035. This is the unique tax ID assigned by the IRS for tax-exempt organizations.
What type of nonprofit is Preferred Children's Services Inc?
Preferred Children's Services Inc is classified under NTEE code Unknown (Unknown).
Is Preferred Children's Services Inc a registered 501(c)(3)?
Preferred Children's Services Inc appears in IRS records (EIN: 222821035). Check the IRS Tax Exempt Organization Search for the most current determination letter status.
Does Preferred Children's Services Inc file IRS Form 990?
Yes, Preferred Children's Services Inc has 5 IRS Form 990 filings on record. The most recent covers tax period 201506.
What was Preferred Children's Services Inc's revenue in 2015?
In the 201506 filing period, Preferred Children's Services Inc reported total revenue of $9,062,830, total expenses of $9,090,498, and net assets of $3,318,656.
Is Preferred Children's Services Inc's revenue growing or declining?
Preferred Children's Services Inc's revenue is growing. Revenue went from $4,522,891 (201412) to $9,062,830 (201506), a +100.4% change. Based on 5 filings on record.
What is Preferred Children's Services Inc's most recent 990 filing?
The most recent IRS Form 990 filing for Preferred Children's Services Inc covers tax period 201506. It shows revenue of $9,062,830, expenses of $9,090,498, total assets of $3,318,656, and liabilities of $2,206,616.
How much does Preferred Children's Services Inc spend on programs vs administration?
Based on IRS 990 analysis, Preferred Children's Services Inc allocates approximately 70% of expenses to program services, 15% to administrative costs, and 15% to fundraising. Program spending is moderate relative to overhead.
Is Preferred Children's Services Inc a trustworthy charity?
Based on AI analysis of IRS 990 data, Preferred Children's Services Inc shows mixed signals. Mission Score: 65/100 (Good). 4 red flags identified. 2 strengths noted.
What are the red flags for Preferred Children's Services Inc?
The following concerns were identified: Significant revenue decline from $9.59M in 2013 to $0.91M in 2015, raising concerns about sustainability.. Reporting 0% compensation for all highest-paid employees across multiple years is a major red flag.. Inconsistent fiscal year-end reporting (December to June) makes year-over-year comparisons difficult and raises questions about financial transparency.. Lack of detailed information regarding program activities and their associated costs.. These flags are based on automated analysis of IRS 990 public filings and should be verified independently.
What are Preferred Children's Services Inc's strengths?
Positive indicators for Preferred Children's Services Inc include: Maintains a positive asset-to-liability ratio, indicating some financial stability despite revenue declines.. Consistently reports assets over $2.7M, suggesting a base of resources.. These findings are derived from AI analysis of the organization's financial filings.
How does Preferred Children's Services Inc compensate executives?
Executive compensation is reported as 0% across all available filings, which is highly unusual for an organization with significant revenue and assets, suggesting potential underreporting or alternative compensation structures. Executive compensation data is sourced from IRS 990 filings, which require disclosure of officer, director, and key employee pay.
Given the reported 0% executive compensation, how does Preferred Children's Services Inc. attract and retain leadership, and what are the actual costs associated with their executive team?
The consistent reporting of 0% executive compensation across multiple years and significant revenue figures (e.g., $9.59M in 2013) strongly suggests that executive compensation is either being paid through an undisclosed related entity, is significantly underreported, or is structured in a non-traditional way not captured by standard compensation disclosures. This lack of transparency makes it impossible to assess the true cost of leadership or their compensation structure from the provided data.
What caused the dramatic revenue decline from $9.59M in 2013 to $0.91M in 2015, and how has the organization adapted its operations to this change?
The provided data does not offer specific reasons for the precipitous drop in revenue. This significant decline would necessitate a major restructuring of operations, programs, and potentially staffing. Without further information, it's unclear if this was due to loss of funding, a change in mission, or other external factors, and how the organization has managed to continue operating with such a reduced income stream.
Filing History
IRS 990 filing history for Preferred Children's Services Inc showing financial trends over 5 years of public records:
Over 5 years of IRS 990 filings (2011–2015), Preferred Children's Services Inc's revenue has grown by 2.7%, moving from $8.8M to $9.1M. Total assets decreased by 4.8% over the same period, from $3.5M to $3.3M. Total functional expenses rose by 3.7%, from $8.8M to $9.1M. In its most recent filing year (2015), Preferred Children's Services Inc reported a deficit of $28K, with expenses exceeding revenue. The organization holds $2.2M in liabilities against $3.3M in assets (debt-to-asset ratio: 66.5%), resulting in net assets of $1.1M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2015 | $9.1M | $9.1M | $3.3M | $2.2M | — | View 990 |
| 2014 | $4.5M | $4.6M | $2.8M | $1.6M | — | — |
| 2013 | $9.6M | $9.5M | $3.4M | $2.2M | — | View 990 |
| 2012 | $9.2M | $9.2M | $3.6M | $2.5M | — | View 990 |
| 2011 | $8.8M | $8.8M | $3.5M | $2.4M | — | View 990 |
Year-by-Year Financial Summary
- 2015: Revenue of $9.1M, expenses of $9.1M, and assets of $3.3M (revenue +100.4% year-over-year).
- 2014: Revenue of $4.5M, expenses of $4.6M, and assets of $2.8M (revenue -52.9% year-over-year).
- 2013: Revenue of $9.6M, expenses of $9.5M, and assets of $3.4M (revenue +4.0% year-over-year).
- 2012: Revenue of $9.2M, expenses of $9.2M, and assets of $3.6M (revenue +4.5% year-over-year).
- 2011: Revenue of $8.8M, expenses of $8.8M, and assets of $3.5M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Preferred Children's Services Inc:
Data Sources and Methodology
This transparency report for Preferred Children's Services 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.