Scottsdale Preparatory Academy
Scottsdale Preparatory Academy shows consistent revenue growth and significant asset expansion, largely debt-financed, with no reported officer compensation.
EIN: 208778703 · Phoenix, AZ · NTEE: B29 · Updated: 2026-03-28
Is Scottsdale Preparatory Academy Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Scottsdale Preparatory Academy directs 85% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Scottsdale Preparatory Academy
Scottsdale Preparatory Academy (EIN: 208778703) is a nonprofit organization based in Phoenix, AZ, classified under NTEE code B29. The organization reported total revenue of $11.0M and total assets of $23.3M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Scottsdale Preparatory Academy's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Scottsdale Preparatory Academy is a large nonprofit that has been operating for 17 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of 8.9%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $10.7M |
| Total Expenses | $10.0M |
| Surplus / Deficit | +$710K |
| Total Assets | $23.3M |
| Total Liabilities | $17.5M |
| Net Assets | $5.8M |
| Operating Margin | 6.6% |
| Debt-to-Asset Ratio | 75.1% |
| Months of Reserves | 27.9 months |
Financial Health Grade: A
In 2023, Scottsdale Preparatory Academy reported a surplus of $710K with revenue exceeding expenses, holds 27.9 months of operating reserves (strong position), has a debt-to-asset ratio of 75.1% (high leverage).
Financial Trends
Over 13 years of filings (2011–2023), Scottsdale Preparatory Academy's revenue has grown at a compound annual growth rate (CAGR) of 8.9%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +12.5% | +13.8% | +222.9% |
| 2022 | +5.2% | +5.8% | +36.5% |
| 2021 | +7.6% | +2.3% | +24.1% |
| 2020 | +6.5% | +5.0% | +8.4% |
| 2019 | -1.2% | -2.4% | +10.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 2009 |
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 Scottsdale Preparatory 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, Scottsdale Preparatory 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 (2023)
From the most recent IRS 990 filing on record:
- The organization reported a surplus of $710K, with revenue exceeding expenses.
- Debt-to-asset ratio: 75.1%.
Executive Compensation Analysis
Scottsdale Preparatory Academy consistently reports 0% officer compensation across all 13 filings, which is unusual for an organization with over $10 million in annual revenue and $23 million in assets. This suggests that executive leadership may be compensated through a related management entity or that the organization relies on volunteer leadership, which could be a significant cost-saving measure.
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 Scottsdale Preparatory Academy's IRS 990 filings:
- No reported officer compensation despite significant revenue and assets, which may obscure actual executive remuneration practices.
- Substantial increase in liabilities ($17,493,360 in 2023) accompanying asset growth, indicating significant debt financing that warrants further scrutiny of debt terms and repayment capacity.
Strengths
The following positive indicators were identified for Scottsdale Preparatory Academy:
- Consistent revenue growth, from $7,042,580 in 2014 to $10,726,233 in 2023, demonstrating financial sustainability.
- Healthy operational surplus in all reported periods, with revenues consistently exceeding expenses (e.g., $10,726,233 revenue vs. $10,016,278 expenses in 2023).
- Significant asset growth, from $1,989,043 in 2014 to $23,301,034 in 2023, indicating investment in organizational capacity.
- No reported officer compensation, potentially indicating efficient use of funds for program delivery or reliance on volunteer leadership.
Frequently Asked Questions about Scottsdale Preparatory Academy
Is Scottsdale Preparatory Academy a legitimate charity?
Based on AI analysis of IRS 990 filings, Scottsdale Preparatory Academy (EIN: 208778703) some concerns. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
How does Scottsdale Preparatory Academy spend its money?
Scottsdale Preparatory Academy directs 85% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Scottsdale Preparatory Academy tax-deductible?
Scottsdale Preparatory Academy is registered as a tax-exempt nonprofit (EIN: 208778703). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is Scottsdale Preparatory Academy a good charity?
Based on the available data, Scottsdale Preparatory Academy appears to be a financially stable organization with consistent revenue growth and a healthy operational surplus. The lack of reported officer compensation is a unique characteristic that could indicate strong resource allocation towards its mission, or it could suggest compensation is handled through a related entity not fully detailed in these filings. Its significant asset growth, while largely debt-financed, points to expansion and investment in its educational mission.
What caused the significant increase in assets and liabilities between 2022 and 2023?
Between 2022 and 2023, assets increased from $7,216,437 to $23,301,034, and liabilities increased from $2,276,189 to $17,493,360. This substantial change suggests a major capital project, such as the acquisition or construction of new facilities, likely financed through long-term debt.
How does Scottsdale Preparatory Academy compensate its executive leadership if officer compensation is reported as 0%?
The consistent reporting of 0% officer compensation across all filings is unusual for an organization of this size. It's possible that executive compensation is paid through a related management organization, or that the top leadership roles are filled by volunteers, which would be a significant strength in terms of resource allocation.
Filing History
IRS 990 filing history for Scottsdale Preparatory Academy showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Scottsdale Preparatory Academy's revenue has grown by 179.5%, moving from $3.8M to $10.7M. Total assets increased by 5190.4% over the same period, from $440K to $23.3M. Total functional expenses rose by 189.2%, from $3.5M to $10.0M. In its most recent filing year (2023), Scottsdale Preparatory Academy reported a surplus of $710K, with revenue exceeding expenses. The organization holds $17.5M in liabilities against $23.3M in assets (debt-to-asset ratio: 75.1%), resulting in net assets of $5.8M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $10.7M | $10.0M | $23.3M | $17.5M | — | — |
| 2022 | $9.5M | $8.8M | $7.2M | $2.3M | — | View 990 |
| 2021 | $9.1M | $8.3M | $5.3M | $719K | — | View 990 |
| 2020 | $8.4M | $8.1M | $4.3M | $595K | — | — |
| 2019 | $7.9M | $7.7M | $3.9M | $639K | — | View 990 |
| 2018 | $8.0M | $7.9M | $3.6M | $542K | — | View 990 |
| 2017 | $7.9M | $7.6M | $3.4M | $435K | — | — |
| 2016 | $8.3M | $7.3M | $3.2M | $634K | — | View 990 |
| 2015 | $7.5M | $6.9M | $2.9M | $1.3M | — | View 990 |
| 2014 | $7.0M | $6.4M | $2.0M | $1.0M | — | View 990 |
| 2013 | $6.0M | $5.9M | $1.5M | $1.2M | — | View 990 |
| 2012 | $5.3M | $5.1M | $1.1M | $909K | — | View 990 |
| 2011 | $3.8M | $3.5M | $440K | $460K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $10.7M, expenses of $10.0M, and assets of $23.3M (revenue +12.5% year-over-year).
- 2022: Revenue of $9.5M, expenses of $8.8M, and assets of $7.2M (revenue +5.2% year-over-year).
- 2021: Revenue of $9.1M, expenses of $8.3M, and assets of $5.3M (revenue +7.6% year-over-year).
- 2020: Revenue of $8.4M, expenses of $8.1M, and assets of $4.3M (revenue +6.5% year-over-year).
- 2019: Revenue of $7.9M, expenses of $7.7M, and assets of $3.9M (revenue -1.2% year-over-year).
- 2018: Revenue of $8.0M, expenses of $7.9M, and assets of $3.6M (revenue +0.8% year-over-year).
- 2017: Revenue of $7.9M, expenses of $7.6M, and assets of $3.4M (revenue -3.7% year-over-year).
- 2016: Revenue of $8.3M, expenses of $7.3M, and assets of $3.2M (revenue +9.7% year-over-year).
- 2015: Revenue of $7.5M, expenses of $6.9M, and assets of $2.9M (revenue +6.8% year-over-year).
- 2014: Revenue of $7.0M, expenses of $6.4M, and assets of $2.0M (revenue +16.5% year-over-year).
- 2013: Revenue of $6.0M, expenses of $5.9M, and assets of $1.5M (revenue +13.0% year-over-year).
- 2012: Revenue of $5.3M, expenses of $5.1M, and assets of $1.1M (revenue +39.4% year-over-year).
- 2011: Revenue of $3.8M, expenses of $3.5M, and assets of $440K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Scottsdale Preparatory Academy:
Data Sources and Methodology
This transparency report for Scottsdale Preparatory 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.