Theatre Squared Inc
Theatre Squared Inc. reports a $1.3 million operating deficit in its latest fiscal year, following periods of strong revenue and asset growth.
EIN: 201016258 · Fayetteville, AR · NTEE: A65 · Updated: 2026-03-28
Is Theatre Squared Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Theatre Squared Inc directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Theatre Squared Inc
Theatre Squared Inc (EIN: 201016258) is a nonprofit organization based in Fayetteville, AR, classified under NTEE code A65. The organization reported total revenue of $6.2M and total assets of $31.8M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Theatre Squared Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Theatre Squared Inc is a mid-size nonprofit that has been operating for 21 years, with 12 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of 23.7%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $5.7M |
| Total Expenses | $7.1M |
| Surplus / Deficit | $-1,366,038 |
| Total Assets | $36.6M |
| Total Liabilities | $4.9M |
| Net Assets | $31.7M |
| Operating Margin | -23.8% |
| Debt-to-Asset Ratio | 13.5% |
| Months of Reserves | 62.0 months |
Financial Health Grade: B
In 2023, Theatre Squared Inc reported a deficit of $1.4M with expenses exceeding revenue, holds 62.0 months of operating reserves (strong position), has a debt-to-asset ratio of 13.5% (very low leverage).
Financial Trends
Over 12 years of filings (2011–2023), Theatre Squared Inc's revenue has grown at a compound annual growth rate (CAGR) of 23.7%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -27.9% | -1.2% | -3.1% |
| 2022 | +1.4% | +68.3% | -6.6% |
| 2021 | -25.4% | +45.7% | +4.6% |
| 2019 | +35.4% | +43.9% | +94.0% |
| 2018 | -15.3% | +10.9% | +77.1% |
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 Theatre Squared Inc with a Mission Score of 70 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: 15%
- programs: 75%
- fundraising: 10%
According to IRS 990 filings, Theatre Squared Inc allocates its expenses as follows: admin: 15%, programs: 75%, fundraising: 10%. With 75% 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 deficit of $1.4M, with expenses exceeding revenue.
- Debt-to-asset ratio: 13.5%.
Executive Compensation Analysis
The IRS 990 filings consistently report 0% for officer compensation, which is unusual for an organization of this size with over $6 million in annual revenue and $30 million in assets. This suggests either a unique compensation structure or that compensation is not reported under this specific line item, warranting further investigation for full 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 Theatre Squared Inc's IRS 990 filings:
- Consistent operating deficit in the latest fiscal year (202306) where expenses exceeded revenue by over $1.3 million.
- Unusual reporting of 0% for officer compensation across all available filings, which may obscure true executive compensation.
- Significant fluctuation in revenue and expenses year-over-year, indicating potential instability in financial planning or external funding.
Strengths
The following positive indicators were identified for Theatre Squared Inc:
- Substantial asset base of $36,638,970 in 202306, providing financial stability and capacity for future projects.
- Demonstrated ability to generate significant revenue, with peaks over $10 million in 201906 and nearly $8 million in 202206 and 202106.
- Strong historical growth in assets, from $362,606 in 201306 to over $36 million in 202306, indicating successful capital campaigns and investment.
Frequently Asked Questions about Theatre Squared Inc
Is Theatre Squared Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Theatre Squared Inc (EIN: 201016258) some concerns. Mission Score: 70/100. 3 red flags identified, 3 strengths noted.
How does Theatre Squared Inc spend its money?
Theatre Squared Inc directs 75% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Theatre Squared Inc tax-deductible?
Theatre Squared Inc is registered as a tax-exempt nonprofit (EIN: 201016258). 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% across all filings?
The consistent reporting of 0% for officer compensation in all available IRS 990 filings for Theatre Squared Inc. is highly unusual for an organization with annual revenues exceeding $6 million and assets over $30 million. This could indicate that executive leadership is compensated through a related entity, through non-cash benefits not captured in this line item, or that the organization relies entirely on volunteer leadership. Clarification on this point is crucial for understanding the true cost of administration and executive oversight.
What caused the $1.3 million operating deficit in the 202306 fiscal period?
In the 202306 fiscal period, Theatre Squared Inc. reported expenses of $7,095,538 against revenues of $5,729,500, resulting in an operating deficit of $1,366,038. This represents a significant shift from the previous two periods (202206 and 202106) where revenues substantially exceeded expenses. Further analysis of the detailed expense categories in the full 990 filing would be needed to identify the specific drivers of this increase in expenses or decrease in revenue.
How does Theatre Squared Inc. plan to address the recent operating deficits?
The recent operating deficit in 202306, where expenses outpaced revenue by over $1.3 million, suggests a need for strategic financial planning. While the organization has substantial assets ($36,638,970 in 202306) to absorb short-term deficits, a sustained trend could impact long-term sustainability. The organization would ideally outline strategies for revenue diversification, cost control, or increased fundraising to return to a surplus.
Filing History
IRS 990 filing history for Theatre Squared Inc showing financial trends over 12 years of public records:
Over 12 years of IRS 990 filings (2011–2023), Theatre Squared Inc's revenue has grown by 1182%, moving from $447K to $5.7M. Total assets increased by 13316.8% over the same period, from $273K to $36.6M. Total functional expenses rose by 1910.2%, from $353K to $7.1M. In its most recent filing year (2023), Theatre Squared Inc reported a deficit of $1.4M, with expenses exceeding revenue. The organization holds $4.9M in liabilities against $36.6M in assets (debt-to-asset ratio: 13.5%), resulting in net assets of $31.7M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $5.7M | $7.1M | $36.6M | $4.9M | — | View 990 |
| 2022 | $7.9M | $7.2M | $37.8M | $4.8M | — | View 990 |
| 2021 | $7.8M | $4.3M | $40.5M | $8.2M | — | — |
| 2019 | $10.5M | $2.9M | $38.7M | $14.4M | — | View 990 |
| 2018 | $7.8M | $2.0M | $19.9M | $3.2M | — | View 990 |
| 2017 | $9.2M | $1.8M | $11.3M | $276K | — | View 990 |
| 2016 | $4.9M | $2.0M | $3.8M | $173K | — | View 990 |
| 2015 | $1.5M | $1.3M | $741K | $174K | — | View 990 |
| 2014 | $1.0M | $968K | $469K | $116K | — | View 990 |
| 2013 | $818K | $781K | $363K | $91K | — | View 990 |
| 2012 | $671K | $552K | $305K | $71K | — | View 990 |
| 2011 | $447K | $353K | $273K | $158K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $5.7M, expenses of $7.1M, and assets of $36.6M (revenue -27.9% year-over-year).
- 2022: Revenue of $7.9M, expenses of $7.2M, and assets of $37.8M (revenue +1.4% year-over-year).
- 2021: Revenue of $7.8M, expenses of $4.3M, and assets of $40.5M (revenue -25.4% year-over-year).
- 2019: Revenue of $10.5M, expenses of $2.9M, and assets of $38.7M (revenue +35.4% year-over-year).
- 2018: Revenue of $7.8M, expenses of $2.0M, and assets of $19.9M (revenue -15.3% year-over-year).
- 2017: Revenue of $9.2M, expenses of $1.8M, and assets of $11.3M (revenue +86.2% year-over-year).
- 2016: Revenue of $4.9M, expenses of $2.0M, and assets of $3.8M (revenue +227.2% year-over-year).
- 2015: Revenue of $1.5M, expenses of $1.3M, and assets of $741K (revenue +43.2% year-over-year).
- 2014: Revenue of $1.0M, expenses of $968K, and assets of $469K (revenue +28.4% year-over-year).
- 2013: Revenue of $818K, expenses of $781K, and assets of $363K (revenue +21.9% year-over-year).
- 2012: Revenue of $671K, expenses of $552K, and assets of $305K (revenue +50.1% year-over-year).
- 2011: Revenue of $447K, expenses of $353K, and assets of $273K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Theatre Squared Inc:
Data Sources and Methodology
This transparency report for Theatre Squared 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.