Promise Academy
Promise Academy shows strong asset growth and no reported officer compensation, but liabilities significantly increased in 2022.
EIN: 201608155 · Memphis, TN · NTEE: B29 · Updated: 2026-03-28
| Metric | Value |
|---|---|
| Total Revenue | $5.2M |
| Total Expenses | $5.7M |
| Program Spending | 85% |
| CEO/Top Officer Pay | $5 |
| Net Assets | $3.7M |
| Transparency Score | 85/100 |
Is Promise Academy Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Promise Academy directs 85% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Promise Academy
Promise Academy (EIN: 201608155) is a nonprofit organization based in Memphis, TN, classified under NTEE code B29. The organization reported total revenue of $5.2M and total assets of $3.7M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Promise Academy's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Promise Academy is a mid-size nonprofit that has been operating for 21 years, with 12 years of IRS 990 filings on record (2011–2022). Revenue has grown at a compound annual rate of 5.1%.
Key Financial Metrics (2022)
From the most recent IRS 990 filing on record:
| Total Revenue | $6.4M |
| Total Expenses | $5.7M |
| Surplus / Deficit | +$736K |
| Total Assets | $7.4M |
| Total Liabilities | $3.7M |
| Net Assets | $3.7M |
| Operating Margin | 11.5% |
| Debt-to-Asset Ratio | 49.4% |
| Months of Reserves | 15.6 months |
Financial Health Grade: A
In 2022, Promise Academy reported a surplus of $736K with revenue exceeding expenses, holds 15.6 months of operating reserves (strong position), has a debt-to-asset ratio of 49.4% (moderate leverage).
Financial Trends
Over 12 years of filings (2011–2022), Promise Academy's revenue has grown at a compound annual growth rate (CAGR) of 5.1%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2022 | +25.5% | +26.9% | +112.4% |
| 2021 | +4.9% | -8.1% | +13.3% |
| 2020 | -5.7% | -0.2% | +32.6% |
| 2019 | +11.4% | +7.8% | +14.5% |
| 2018 | -0.5% | +2.4% | +33.7% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 2005 |
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 Promise Academy 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, Promise Academy 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 (2022)
From the most recent IRS 990 filing on record:
- The organization reported a surplus of $736K, with revenue exceeding expenses.
- Debt-to-asset ratio: 49.4%.
Executive Compensation Analysis
Promise Academy consistently reports 0% officer compensation across all available filings, which is highly unusual for an organization of its size with revenues exceeding $5 million annually. This suggests either a fully volunteer executive leadership or that compensation is categorized differently, requiring further clarification 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 Promise Academy's IRS 990 filings:
- Significant increase in liabilities (from $479,116 to $3,657,125) in the most recent filing period (2022) without clear explanation in summary data.
- Consistent reporting of 0% officer compensation for an organization with over $5 million in annual revenue, which may obscure actual leadership costs or structure.
Strengths
The following positive indicators were identified for Promise Academy:
- Consistent revenue generation, averaging over $4.7 million annually over the past decade.
- Strong asset growth, nearly doubling from $3.48 million in 2021 to $7.39 million in 2022.
- Expenses consistently below revenue in most years, indicating healthy operating margins and financial stability.
- No reported officer compensation, suggesting a high dedication of resources to programs or a unique leadership compensation model.
Frequently Asked Questions about Promise Academy
Is Promise Academy a legitimate charity?
Promise Academy (EIN: 201608155) is a registered tax-exempt nonprofit based in Tennessee. Our AI analysis gives it a Mission Score of 85/100. It has 12 years of IRS 990 filings on record. Total revenue: $5.2M. 2 red flags identified. 4 strengths noted. Financial health grade: A.
How does Promise Academy spend its money?
Promise Academy directs 85% of its spending to programs and services. Fundraising costs 5%. This exceeds the 65% industry benchmark.
Are donations to Promise Academy tax-deductible?
Promise Academy is registered as a tax-exempt nonprofit (EIN: 201608155). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How much does the Promise Academy CEO make?
Promise Academy's highest-compensated officer earns $5 annually. The organization reported $5.2M in total revenue. Executive compensation data is disclosed in IRS 990 filings.
What percentage of Promise Academy's spending goes to programs?
Promise Academy directs 85% to programs, 5% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
How does Promise Academy compare to similar nonprofits?
With a transparency score of 85/100 (Excellent), Promise Academy is above average for NTEE category B29 nonprofits. The score reflects financial transparency, program spending efficiency, and governance quality based on IRS 990 data.
Where is Promise Academy located?
Promise Academy is headquartered in Memphis, Tennessee and files with the IRS under EIN 201608155. It is classified under NTEE code B29.
How many years of IRS 990 filings does Promise Academy have?
Promise Academy has 12 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 $5.2M in total revenue.
What caused the significant increase in liabilities from $479,116 in 2021 to $3,657,125 in 2022?
The IRS 990 filings indicate a substantial jump in liabilities in the most recent period. This could be due to new program investments, facility expansion, or other strategic initiatives, and understanding the nature of these liabilities is crucial for assessing financial risk.
How does Promise Academy manage executive leadership without reported officer compensation?
The consistent reporting of 0% officer compensation across all filings is atypical. It suggests that executive leadership may be entirely volunteer-based, compensated through a related entity, or that compensation is reported under other expense categories, which impacts the interpretation of administrative efficiency.
What is the organization's long-term strategy for managing its growing assets and liabilities?
With assets nearly doubling to $7.39 million in 2022 and a corresponding rise in liabilities, understanding the strategic plan behind this growth, including asset utilization and debt management, is important for evaluating sustainability.
Filing History
IRS 990 filing history for Promise Academy showing financial trends over 12 years of public records:
Over 12 years of IRS 990 filings (2011–2022), Promise Academy's revenue has grown by 72.5%, moving from $3.7M to $6.4M. Total assets increased by 1026.4% over the same period, from $657K to $7.4M. Total functional expenses rose by 54.7%, from $3.7M to $5.7M. In its most recent filing year (2022), Promise Academy reported a surplus of $736K, with revenue exceeding expenses. The organization holds $3.7M in liabilities against $7.4M in assets (debt-to-asset ratio: 49.4%), resulting in net assets of $3.7M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2022 | $6.4M | $5.7M | $7.4M | $3.7M | — | View 990 |
| 2021 | $5.1M | $4.5M | $3.5M | $479K | — | View 990 |
| 2020 | $4.9M | $4.9M | $3.1M | $1.4M | — | View 990 |
| 2019 | $5.2M | $4.9M | $2.3M | $605K | — | View 990 |
| 2018 | $4.6M | $4.5M | $2.0M | $599K | — | View 990 |
| 2017 | $4.7M | $4.4M | $1.5M | $731K | — | View 990 |
| 2016 | $4.6M | $4.4M | $2.3M | $1.8M | — | View 990 |
| 2015 | $4.8M | $4.5M | $1.5M | $1.1M | — | View 990 |
| 2014 | $4.6M | $4.6M | $1.0M | $326K | — | View 990 |
| 2013 | $4.4M | $4.1M | $934K | $178K | — | View 990 |
| 2012 | $4.1M | $3.9M | $689K | $260K | — | View 990 |
| 2011 | $3.7M | $3.7M | $657K | $400K | — | View 990 |
Year-by-Year Financial Summary
- 2022: Revenue of $6.4M, expenses of $5.7M, and assets of $7.4M (revenue +25.5% year-over-year).
- 2021: Revenue of $5.1M, expenses of $4.5M, and assets of $3.5M (revenue +4.9% year-over-year).
- 2020: Revenue of $4.9M, expenses of $4.9M, and assets of $3.1M (revenue -5.7% year-over-year).
- 2019: Revenue of $5.2M, expenses of $4.9M, and assets of $2.3M (revenue +11.4% year-over-year).
- 2018: Revenue of $4.6M, expenses of $4.5M, and assets of $2.0M (revenue -0.5% year-over-year).
- 2017: Revenue of $4.7M, expenses of $4.4M, and assets of $1.5M (revenue +1.8% year-over-year).
- 2016: Revenue of $4.6M, expenses of $4.4M, and assets of $2.3M (revenue -4.4% year-over-year).
- 2015: Revenue of $4.8M, expenses of $4.5M, and assets of $1.5M (revenue +5.1% year-over-year).
- 2014: Revenue of $4.6M, expenses of $4.6M, and assets of $1.0M (revenue +3.3% year-over-year).
- 2013: Revenue of $4.4M, expenses of $4.1M, and assets of $934K (revenue +8.7% year-over-year).
- 2012: Revenue of $4.1M, expenses of $3.9M, and assets of $689K (revenue +9.2% year-over-year).
- 2011: Revenue of $3.7M, expenses of $3.7M, and assets of $657K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Promise Academy:
Data Sources and Methodology
This transparency report for Promise Academy 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.