Socrates Academy Inc
Socrates Academy Inc shows strong revenue growth and no officer compensation, but faces significant and growing liabilities exceeding assets.
EIN: 201361228 · Rutherfordton, NC · NTEE: B29 · Updated: 2026-03-28
Is Socrates Academy Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Socrates Academy Inc directs 90% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Socrates Academy Inc
Socrates Academy Inc (EIN: 201361228) is a nonprofit organization based in Rutherfordton, NC, classified under NTEE code B29. The organization reported total revenue of $10.6M and total assets of $7.7M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Socrates Academy Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Socrates Academy Inc is a large nonprofit that has been operating for 19 years, with 12 years of IRS 990 filings on record (2012–2023). Revenue has grown at a compound annual rate of 8.1%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $9.3M |
| Total Expenses | $8.6M |
| Surplus / Deficit | +$723K |
| Total Assets | $9.0M |
| Total Liabilities | $13.0M |
| Net Assets | $-3,996,711 |
| Operating Margin | 7.8% |
| Debt-to-Asset Ratio | 144.5% |
| Months of Reserves | 12.5 months |
Financial Health Grade: A
In 2023, Socrates Academy Inc reported a surplus of $723K with revenue exceeding expenses, holds 12.5 months of operating reserves (strong position), has a debt-to-asset ratio of 144.5% (high leverage).
Financial Trends
Over 12 years of filings (2012–2023), Socrates Academy Inc's revenue has grown at a compound annual growth rate (CAGR) of 8.1%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +5.0% | +14.9% | +58.3% |
| 2022 | +11.4% | +12.0% | +17.7% |
| 2021 | +14.9% | -4.8% | +21.4% |
| 2020 | +10.4% | +10.2% | +39.7% |
| 2019 | +7.9% | -1.6% | +25.9% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 2007 |
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 Socrates Academy Inc 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: 10%
- programs: 90%
- fundraising: 0%
According to IRS 990 filings, Socrates Academy Inc allocates its expenses as follows: admin: 10%, programs: 90%, fundraising: 0%. With 90% 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 $723K, with revenue exceeding expenses.
- Debt-to-asset ratio: 144.5%.
Executive Compensation Analysis
Executive compensation is reported as 0% across all available filings, indicating that no officers or key employees receive compensation directly from the organization, which is highly unusual for an organization of its size with over $10 million in revenue.
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 Socrates Academy Inc's IRS 990 filings:
- Liabilities consistently and significantly exceed assets, reaching $12,974,100 in 202306 compared to $8,977,389 in assets.
- The growing gap between liabilities and assets over the past several years indicates increasing financial leverage or debt burden.
Strengths
The following positive indicators were identified for Socrates Academy Inc:
- Consistent revenue growth, from $5,161,537 in 201406 to $9,329,665 in 202306.
- Positive net income in most recent years, indicating sound operational management (e.g., $723,170 surplus in 202306).
- 0% reported officer compensation across all filings, suggesting a high dedication of funds to the mission.
- Strong asset growth, from $1,305,287 in 201406 to $8,977,389 in 202306.
Frequently Asked Questions about Socrates Academy Inc
Is Socrates Academy Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Socrates Academy Inc (EIN: 201361228) some concerns. Mission Score: 75/100. 2 red flags identified, 4 strengths noted.
How does Socrates Academy Inc spend its money?
Socrates Academy Inc directs 90% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Socrates Academy Inc tax-deductible?
Socrates Academy Inc is registered as a tax-exempt nonprofit (EIN: 201361228). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
What is the nature of Socrates Academy Inc's substantial and growing liabilities, which reached $12,974,100 in 202306?
The filings indicate significant liabilities consistently exceeding assets, but do not detail their specific nature (e.g., mortgages, bonds, program-related debt). This requires further investigation beyond the summary data provided.
How does Socrates Academy Inc operate without any reported officer compensation, given its multi-million dollar revenue?
The 0% officer compensation suggests that executive leadership may be compensated by a related entity, through volunteer work, or that the organization's structure does not involve paid officers in the traditional sense. This is a notable operational model for an organization of this scale.
Is the organization's long-term financial stability at risk due to liabilities consistently exceeding assets?
While the organization has positive net income, the persistent and growing negative net asset position (liabilities > assets) indicates a reliance on debt or other long-term obligations that could pose a risk to long-term stability if not managed effectively.
Filing History
IRS 990 filing history for Socrates Academy Inc showing financial trends over 12 years of public records:
Over 12 years of IRS 990 filings (2012–2023), Socrates Academy Inc's revenue has grown by 136.6%, moving from $3.9M to $9.3M. Total assets increased by 782.9% over the same period, from $1.0M to $9.0M. Total functional expenses rose by 113.2%, from $4.0M to $8.6M. In its most recent filing year (2023), Socrates Academy Inc reported a surplus of $723K, with revenue exceeding expenses. The organization holds $13.0M in liabilities against $9.0M in assets (debt-to-asset ratio: 144.5%), resulting in net assets of $-3,996,711.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $9.3M | $8.6M | $9.0M | $13.0M | — | View 990 |
| 2022 | $8.9M | $7.5M | $5.7M | $10.3M | — | View 990 |
| 2021 | $8.0M | $6.7M | $4.8M | $10.9M | — | View 990 |
| 2020 | $6.9M | $7.0M | $4.0M | $11.3M | — | View 990 |
| 2019 | $6.3M | $6.4M | $2.8M | $10.1M | — | View 990 |
| 2018 | $5.8M | $6.5M | $2.3M | $9.4M | — | View 990 |
| 2017 | $5.7M | $5.8M | $2.4M | $1.9M | — | View 990 |
| 2016 | $5.4M | $5.3M | $1.5M | $995K | — | View 990 |
| 2015 | $5.2M | $5.1M | $1.6M | $1.1M | — | View 990 |
| 2014 | $5.2M | $5.1M | $1.3M | $168K | — | View 990 |
| 2013 | $4.8M | $4.7M | $1.2M | $106K | — | View 990 |
| 2012 | $3.9M | $4.0M | $1.0M | $8K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $9.3M, expenses of $8.6M, and assets of $9.0M (revenue +5.0% year-over-year).
- 2022: Revenue of $8.9M, expenses of $7.5M, and assets of $5.7M (revenue +11.4% year-over-year).
- 2021: Revenue of $8.0M, expenses of $6.7M, and assets of $4.8M (revenue +14.9% year-over-year).
- 2020: Revenue of $6.9M, expenses of $7.0M, and assets of $4.0M (revenue +10.4% year-over-year).
- 2019: Revenue of $6.3M, expenses of $6.4M, and assets of $2.8M (revenue +7.9% year-over-year).
- 2018: Revenue of $5.8M, expenses of $6.5M, and assets of $2.3M (revenue +2.4% year-over-year).
- 2017: Revenue of $5.7M, expenses of $5.8M, and assets of $2.4M (revenue +4.5% year-over-year).
- 2016: Revenue of $5.4M, expenses of $5.3M, and assets of $1.5M (revenue +5.1% year-over-year).
- 2015: Revenue of $5.2M, expenses of $5.1M, and assets of $1.6M (revenue +0.4% year-over-year).
- 2014: Revenue of $5.2M, expenses of $5.1M, and assets of $1.3M (revenue +8.5% year-over-year).
- 2013: Revenue of $4.8M, expenses of $4.7M, and assets of $1.2M (revenue +20.6% year-over-year).
- 2012: Revenue of $3.9M, expenses of $4.0M, and assets of $1.0M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Socrates Academy Inc:
Data Sources and Methodology
This transparency report for Socrates Academy 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.