Preparatory Foundation Inc
Preparatory Foundation Inc maintains strong asset growth and positive net income with no reported officer compensation.
EIN: 113690799 · Hyde Park, MA · NTEE: T30 · Updated: 2026-03-28
| Metric | Value |
|---|---|
| Total Revenue | $4.6M |
| Total Expenses | $3.8M |
| Program Spending | 85% |
| CEO/Top Officer Pay | $60 |
| Net Assets | $12.3M |
| Transparency Score | 85/100 |
Is Preparatory Foundation Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Preparatory Foundation Inc directs 85% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Preparatory Foundation Inc
Preparatory Foundation Inc (EIN: 113690799) is a nonprofit organization based in Hyde Park, MA, classified under NTEE code T30. The organization reported total revenue of $4.6M and total assets of $62.8M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Preparatory Foundation Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Preparatory Foundation Inc is a mid-size nonprofit that has been operating for 23 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of 21.1%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $4.3M |
| Total Expenses | $3.8M |
| Surplus / Deficit | +$521K |
| Total Assets | $64.7M |
| Total Liabilities | $52.4M |
| Net Assets | $12.3M |
| Operating Margin | 12.1% |
| Debt-to-Asset Ratio | 80.9% |
| Months of Reserves | 205.0 months |
Financial Health Grade: A
In 2023, Preparatory Foundation Inc reported a surplus of $521K with revenue exceeding expenses, holds 205.0 months of operating reserves (strong position), has a debt-to-asset ratio of 80.9% (high leverage).
Financial Trends
Over 13 years of filings (2011–2023), Preparatory Foundation Inc's revenue has grown at a compound annual growth rate (CAGR) of 21.1%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -1.8% | -0.4% | -0.7% |
| 2022 | +22.0% | -1.8% | +63.5% |
| 2021 | +17.1% | -9.3% | -2.1% |
| 2020 | -8.6% | +10.5% | -4.2% |
| 2019 | -28.5% | +60.8% | +7.4% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 2003 |
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 Preparatory Foundation Inc 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, Preparatory Foundation 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.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a surplus of $521K, with revenue exceeding expenses.
- Debt-to-asset ratio: 80.9%.
Executive Compensation Analysis
Preparatory Foundation Inc consistently reports 0% officer compensation across all available filings, which is highly unusual for an organization of its size with over $60 million in assets and millions in annual revenue. This suggests either a fully volunteer executive leadership or that executive compensation is being paid by a related entity, which would require further disclosure for complete transparency.
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 Preparatory Foundation Inc's IRS 990 filings:
- Consistent 0% officer compensation reported, which is unusual for an organization of this size and could indicate undisclosed executive costs or a complex organizational structure.
- Significant increase in liabilities alongside asset growth, from $200,507 in 2014 to $52,370,975 in 2023, warrants investigation into the nature of these liabilities (e.g., mortgages, program-related investments).
Strengths
The following positive indicators were identified for Preparatory Foundation Inc:
- Strong and consistent asset growth, from $1.7M in 2014 to $64.7M in 2023, indicating robust financial management or successful fundraising.
- Positive net income in recent years (e.g., $4,309,510 revenue vs. $3,788,117 expenses in 202306), demonstrating financial stability and operational efficiency.
- Substantial total assets ($64,701,277 in 2023) provide a strong financial base for mission-related activities and long-term sustainability.
Frequently Asked Questions about Preparatory Foundation Inc
Is Preparatory Foundation Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Preparatory Foundation Inc (EIN: 113690799) some concerns. Mission Score: 85/100. 2 red flags identified, 3 strengths noted.
How does Preparatory Foundation Inc spend its money?
Preparatory Foundation Inc directs 85% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Preparatory Foundation Inc tax-deductible?
Preparatory Foundation Inc is registered as a tax-exempt nonprofit (EIN: 113690799). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How much does the Preparatory Foundation Inc CEO make?
Preparatory Foundation Inc's highest-compensated officer earns $60 annually. The organization reported $4.6M in total revenue. Executive compensation data is disclosed in IRS 990 filings.
What percentage of Preparatory Foundation Inc's spending goes to programs?
Preparatory Foundation Inc directs 85% to programs, 5% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
How does Preparatory Foundation Inc compare to similar nonprofits?
With a transparency score of 85/100 (Excellent), Preparatory Foundation Inc is above average for NTEE category T30 nonprofits. The score reflects financial transparency, program spending efficiency, and governance quality based on IRS 990 data.
Where is Preparatory Foundation Inc located?
Preparatory Foundation Inc is headquartered in Hyde Park, Massachusetts and files with the IRS under EIN 113690799. It is classified under NTEE code T30.
How many years of IRS 990 filings does Preparatory Foundation Inc have?
Preparatory Foundation Inc has 13 years of IRS 990 filings on record at NonprofitSpending. This extensive filing history provides a strong basis for evaluating long-term financial trends. The most recent filing shows $4.6M in total revenue.
How does Preparatory Foundation Inc manage to operate without reporting any officer compensation?
The consistent reporting of 0% officer compensation across all filings is highly unusual for an organization of this scale. It suggests either a fully volunteer executive leadership, or that compensation for executives is being covered by a related entity or through other means not disclosed in the officer compensation section of the 990. Further inquiry into their operational structure and related party transactions would be necessary to understand this fully.
What is the primary driver of the significant asset growth from $1.7M in 2014 to $64.7M in 2023?
The substantial increase in assets, from $1,744,731 in 2014 to $64,701,277 in 2023, indicates either highly successful investment strategies, significant capital campaigns, or large donations. Given the NTEE code T30 (Support for the Arts, Culture, and Humanities), it's possible they've acquired significant property or endowments related to their mission.
Is the organization's financial health sustainable given its current revenue and expense trends?
Yes, the organization's financial health appears sustainable. In recent years (202206 and 202306), revenues have consistently exceeded expenses, leading to positive net income and contributing to asset growth. This trend indicates a healthy operational margin.
Filing History
IRS 990 filing history for Preparatory Foundation Inc showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Preparatory Foundation Inc's revenue has grown by 896.1%, moving from $433K to $4.3M. Total assets increased by 5543.2% over the same period, from $1.1M to $64.7M. Total functional expenses rose by 1432.5%, from $247K to $3.8M. In its most recent filing year (2023), Preparatory Foundation Inc reported a surplus of $521K, with revenue exceeding expenses. The organization holds $52.4M in liabilities against $64.7M in assets (debt-to-asset ratio: 80.9%), resulting in net assets of $12.3M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $4.3M | $3.8M | $64.7M | $52.4M | — | View 990 |
| 2022 | $4.4M | $3.8M | $65.2M | $54.2M | — | View 990 |
| 2021 | $3.6M | $3.9M | $39.9M | $30.4M | — | — |
| 2020 | $3.1M | $4.3M | $40.7M | $32.1M | — | View 990 |
| 2019 | $3.4M | $3.9M | $42.5M | $31.3M | — | View 990 |
| 2018 | $4.7M | $2.4M | $39.6M | $26.5M | — | View 990 |
| 2017 | $3.3M | $890K | $28.4M | $18.3M | — | View 990 |
| 2016 | $1.1M | $696K | $14.1M | $7.3M | — | View 990 |
| 2015 | $6.1M | $404K | $7.5M | $323K | — | View 990 |
| 2014 | $478K | $289K | $1.7M | $201K | — | View 990 |
| 2013 | $423K | $370K | $1.6M | $206K | — | View 990 |
| 2012 | $404K | $248K | $1.3M | $0 | — | View 990 |
| 2011 | $433K | $247K | $1.1M | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $4.3M, expenses of $3.8M, and assets of $64.7M (revenue -1.8% year-over-year).
- 2022: Revenue of $4.4M, expenses of $3.8M, and assets of $65.2M (revenue +22.0% year-over-year).
- 2021: Revenue of $3.6M, expenses of $3.9M, and assets of $39.9M (revenue +17.1% year-over-year).
- 2020: Revenue of $3.1M, expenses of $4.3M, and assets of $40.7M (revenue -8.6% year-over-year).
- 2019: Revenue of $3.4M, expenses of $3.9M, and assets of $42.5M (revenue -28.5% year-over-year).
- 2018: Revenue of $4.7M, expenses of $2.4M, and assets of $39.6M (revenue +40.7% year-over-year).
- 2017: Revenue of $3.3M, expenses of $890K, and assets of $28.4M (revenue +192.6% year-over-year).
- 2016: Revenue of $1.1M, expenses of $696K, and assets of $14.1M (revenue -81.2% year-over-year).
- 2015: Revenue of $6.1M, expenses of $404K, and assets of $7.5M (revenue +1171.0% year-over-year).
- 2014: Revenue of $478K, expenses of $289K, and assets of $1.7M (revenue +13.0% year-over-year).
- 2013: Revenue of $423K, expenses of $370K, and assets of $1.6M (revenue +4.8% year-over-year).
- 2012: Revenue of $404K, expenses of $248K, and assets of $1.3M (revenue -6.7% year-over-year).
- 2011: Revenue of $433K, expenses of $247K, and assets of $1.1M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Preparatory Foundation Inc:
Data Sources and Methodology
This transparency report for Preparatory Foundation 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.