Arete Preparatory Academy

Nonprofit profile at a glance

EIN
205332933
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Phoenix, AZ, USA
Phone
6024387045
Rating
88
Verdict
STRONG
Rating confidence
Moderate
Sector
Charter Schools

Official website

Reported finances

Revenue
$6,653,032
Expenses
$6,669,573
Assets
$10,073,360
Liabilities
$7,987,393

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

5 people listed

Highest reported compensation

  • MELANIE ATTRIDGE (HEADMASTER): $121,049 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

An arete preparatory academy education prepares students to be more than just proficient test takers, but rather, to become great-hearted leaders capable of success throughout their higher education and professional careers. With a curriculum built upon a classical liberal arts tradition and a revolutionary approach to school itself, great hearts cultivates the hearts and minds of students in the pursuit of truth, goodness, and beauty.

Operating model

Revenue model
Earned-program. 88% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Fundraising costs are high for each dollar raised and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 84
  • Transparency & Controls: 92
  • Accountability: 100
  • Sustainability: 41
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 88.1%; rating input score 88
  • Program expense ratio: 87.9%; rating input score 88
  • Fundraising efficiency: $17.93 raised per $1 spent on fundraising; rating input score 56; 56th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 8 of 8 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -0.2%; rating input score 32; 32nd percentile among comparable filings
  • Total-asset coverage ratio: 1.51; rating input score 52; 52nd percentile among comparable filings
  • Liabilities to assets ratio: 0.79; rating input score 10; 10th percentile among comparable filings
  • Officer compensation ratio: 0.3%; rating input score 82; 82nd percentile among comparable filings

Growth

  • Program expense growth: 7.3% per year; rating input score 100; 52nd percentile among comparable filings
  • Revenue growth: 6.1% per year; rating input score 100; 49th percentile among comparable filings
  • Asset growth: 19.7% per year; rating input score 100; 83rd percentile among comparable filings

Details

  • Where the money goes: 88.1% of revenue deployed · 87.9% of spending went to programs
  • Governance: 4 of 4 board members independent · 8 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $5.9M in reported program spending
  • Leadership: top reported pay $121K · 5 people listed
  • Consistency: 29 of 29 current checks pass
  • Schedules: 6 filed schedules · includes major donors
  • Filing history: 14 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Related organizations: 26 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Review — Financial Efficiency: Fundraising efficiency scored 56/100.
  • Moderate — Sustainability: Operating margin scored 32/100.
  • Review — Sustainability: Total-asset coverage ratio scored 52/100.
  • High — Sustainability: Liabilities to assets ratio scored 10/100.