Professional Beauty Association
Professional Beauty Association shows volatile revenue, consistent asset growth, and no reported officer compensation.
EIN: 201585064 · Scottsdale, AZ · NTEE: S41 · Updated: 2026-03-28
Is Professional Beauty Association Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Professional Beauty Association directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Professional Beauty Association
Professional Beauty Association (EIN: 201585064) is a nonprofit organization based in Scottsdale, AZ, classified under NTEE code S41. The organization reported total revenue of $3.4M and total assets of $24.3M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Professional Beauty Association's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Professional Beauty Association is a mid-size nonprofit that has been operating for 18 years, with 14 years of IRS 990 filings on record (2010–2023). Revenue has grown at a compound annual rate of -7.1%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $2.3M |
| Total Expenses | $4.4M |
| Surplus / Deficit | $-2,005,865 |
| Total Assets | $26.3M |
| Total Liabilities | $4.3M |
| Net Assets | $22.0M |
| Operating Margin | -85.5% |
| Debt-to-Asset Ratio | 16.4% |
| Months of Reserves | 72.6 months |
Financial Health Grade: B
In 2023, Professional Beauty Association reported a deficit of $2.0M with expenses exceeding revenue, holds 72.6 months of operating reserves (strong position), has a debt-to-asset ratio of 16.4% (very low leverage).
Financial Trends
Over 14 years of filings (2010–2023), Professional Beauty Association's revenue has declined at a compound annual growth rate (CAGR) of -7.1%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -90.6% | -26.2% | -6.2% |
| 2022 | +415.9% | +15.4% | +158.0% |
| 2021 | +9.3% | -39.3% | +13.4% |
| 2020 | -57.9% | -4.2% | -23.6% |
| 2019 | +16.9% | -0.5% | -3.8% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 2008 |
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 Professional Beauty Association with a Mission Score of 75 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: 20%
- programs: 70%
- fundraising: 10%
According to IRS 990 filings, Professional Beauty Association allocates its expenses as follows: admin: 20%, programs: 70%, fundraising: 10%. Approximately 70% goes to programs, indicating moderate mission focus.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $2.0M, with expenses exceeding revenue.
- Debt-to-asset ratio: 16.4%.
Executive Compensation Analysis
The Professional Beauty Association consistently reports 0% officer compensation across all available filings, which is highly unusual for an organization of its size with assets exceeding $24 million. This suggests either that no officers receive reportable compensation or that it is covered by other categories, which could be a positive indicator of efficient resource allocation or a point for further inquiry regarding 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 Professional Beauty Association's IRS 990 filings:
- Significant revenue volatility, with a sharp drop from $24.9M in 2022 to $2.3M in 2023.
- Expenses exceeding revenue in multiple years (e.g., 2023, 2021, 2020, 2017, 2016, 2015, 2014), indicating reliance on reserves or other funding.
- Unusually consistent 0% officer compensation reported across all filings for an organization with over $24 million in assets, which may warrant further investigation into compensation structures.
Strengths
The following positive indicators were identified for Professional Beauty Association:
- Consistent growth in assets from $7.5M in 2014 to $26.3M in 2023, indicating strong financial management or investment.
- No reported officer compensation, suggesting efficient use of funds or a unique compensation model.
- Long filing history (14 filings) demonstrates consistent compliance and transparency in reporting to the IRS.
Frequently Asked Questions about Professional Beauty Association
Is Professional Beauty Association a legitimate charity?
Based on AI analysis of IRS 990 filings, Professional Beauty Association (EIN: 201585064) some concerns. Mission Score: 75/100. 3 red flags identified, 3 strengths noted.
How does Professional Beauty Association spend its money?
Professional Beauty Association directs 70% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Professional Beauty Association tax-deductible?
Professional Beauty Association is registered as a tax-exempt nonprofit (EIN: 201585064). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Why is officer compensation consistently reported as 0% despite the organization's size and revenue?
This could indicate that executive compensation is either very low, non-existent, or structured in a way that it doesn't meet the IRS reporting thresholds for individual officers, which is a positive for resource allocation but warrants clarification.
What caused the significant revenue spike in 2022 ($24,970,282) and the subsequent sharp decline in 2023 ($2,344,734)?
Such large fluctuations suggest a reliance on specific events, grants, or cyclical activities. Understanding the nature of this revenue is crucial for assessing financial stability.
How does the organization plan to address periods where expenses significantly exceed revenue, such as in 2023?
In 2023, expenses ($4,350,599) were nearly double the revenue ($2,344,734). This indicates a reliance on reserves or other funding sources, which needs to be sustainable.
What is the breakdown of program, administrative, and fundraising expenses for the most recent fiscal year?
While a general breakdown is provided, specific percentages from the latest filing would offer more precise insight into spending efficiency.
Filing History
IRS 990 filing history for Professional Beauty Association showing financial trends over 14 years of public records:
Over 14 years of IRS 990 filings (2010–2023), Professional Beauty Association's revenue has declined by 61.4%, moving from $6.1M to $2.3M. Total assets increased by 482.8% over the same period, from $4.5M to $26.3M. Total functional expenses fell by 30.7%, from $6.3M to $4.4M. In its most recent filing year (2023), Professional Beauty Association reported a deficit of $2.0M, with expenses exceeding revenue. The organization holds $4.3M in liabilities against $26.3M in assets (debt-to-asset ratio: 16.4%), resulting in net assets of $22.0M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $2.3M | $4.4M | $26.3M | $4.3M | — | — |
| 2022 | $25.0M | $5.9M | $28.1M | $3.9M | — | View 990 |
| 2021 | $4.8M | $5.1M | $10.9M | $5.7M | — | View 990 |
| 2020 | $4.4M | $8.4M | $9.6M | $4.6M | — | View 990 |
| 2019 | $10.5M | $8.8M | $12.6M | $3.3M | — | View 990 |
| 2018 | $9.0M | $8.8M | $13.1M | $7.2M | — | View 990 |
| 2017 | $7.1M | $8.1M | $8.2M | $2.9M | — | — |
| 2016 | $7.0M | $7.4M | $8.6M | $3.2M | — | View 990 |
| 2015 | $6.7M | $7.0M | $8.0M | $3.2M | — | View 990 |
| 2014 | $6.6M | $6.9M | $7.5M | $3.2M | — | View 990 |
| 2013 | $6.3M | $6.1M | $7.2M | $3.5M | — | View 990 |
| 2012 | $6.8M | $7.3M | $6.5M | $4.1M | — | View 990 |
| 2011 | $9.0M | $7.7M | $6.1M | $4.2M | — | View 990 |
| 2010 | $6.1M | $6.3M | $4.5M | $4.6M | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $2.3M, expenses of $4.4M, and assets of $26.3M (revenue -90.6% year-over-year).
- 2022: Revenue of $25.0M, expenses of $5.9M, and assets of $28.1M (revenue +415.9% year-over-year).
- 2021: Revenue of $4.8M, expenses of $5.1M, and assets of $10.9M (revenue +9.3% year-over-year).
- 2020: Revenue of $4.4M, expenses of $8.4M, and assets of $9.6M (revenue -57.9% year-over-year).
- 2019: Revenue of $10.5M, expenses of $8.8M, and assets of $12.6M (revenue +16.9% year-over-year).
- 2018: Revenue of $9.0M, expenses of $8.8M, and assets of $13.1M (revenue +26.3% year-over-year).
- 2017: Revenue of $7.1M, expenses of $8.1M, and assets of $8.2M (revenue +2.4% year-over-year).
- 2016: Revenue of $7.0M, expenses of $7.4M, and assets of $8.6M (revenue +4.4% year-over-year).
- 2015: Revenue of $6.7M, expenses of $7.0M, and assets of $8.0M (revenue +0.7% year-over-year).
- 2014: Revenue of $6.6M, expenses of $6.9M, and assets of $7.5M (revenue +4.4% year-over-year).
- 2013: Revenue of $6.3M, expenses of $6.1M, and assets of $7.2M (revenue -6.1% year-over-year).
- 2012: Revenue of $6.8M, expenses of $7.3M, and assets of $6.5M (revenue -24.6% year-over-year).
- 2011: Revenue of $9.0M, expenses of $7.7M, and assets of $6.1M (revenue +47.4% year-over-year).
- 2010: Revenue of $6.1M, expenses of $6.3M, and assets of $4.5M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Professional Beauty Association:
Data Sources and Methodology
This transparency report for Professional Beauty Association 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.