Butterflies Academy

Nonprofit profile at a glance

EIN
474666290
IRS 990 coverage
2018–2025
Forms available
Form 990 2025, Form 990-EZ 2017, Form 990-N 2016
Location
Los Gatos, CA, USA
Phone
4088673772
Rating
68
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Kindergarten, Preschool, Nursery School, Early Admissions

Reported finances

Revenue
$589,922
Expenses
$615,116
Assets
$1,240,402
Liabilities
$426,695

Source: IRS Form 990. Selected filing: tax year 2025. Amounts in USD.

Leadership & pay

2 people listed

Executive titles in this filing

  • Farinaz Azarchehr (CEO and CFO)

Highest reported compensation

  • Farinaz Azarchehr (CEO and CFO): $197,917 total reported compensation
  • Farissa Azarchehr (Secretary): $22,000 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2025. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Education to Low Income and Foster Children Butterflies Acadamy mission is to provide reduced rate preschool

What it reported doing in 2025

Butterflies Acadamy offered year round preschool program servicing Aprozimately 30 children ages 2 and up for entry into kindergarden.

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

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. A relatively small share of voting board members are independent and few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 65
  • Accountability: 32
  • Sustainability: 31
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 100%; rating input score 100
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 0%; rating input score 0; 6th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -4.3%; rating input score 20; 20th percentile among comparable filings
  • Total-asset coverage ratio: 2.02; rating input score 65; 65th percentile among comparable filings
  • Liabilities to assets ratio: 0.34; rating input score 17; 17th percentile among comparable filings
  • Officer compensation ratio: Limited

Growth

  • Program expense growth: 18.7% per year; rating input score 100; 78th percentile among comparable filings
  • Revenue growth: 17.1% per year; rating input score 100; 78th percentile among comparable filings
  • Asset growth: 29.3% per year; rating input score 100; 89th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 100% of spending went to programs
  • Governance: 0 of 2 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $615K in reported program spending
  • Leadership: top reported pay $198K · 2 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 17 of 17 current checks pass
  • Schedules: 7 filed schedules · includes major donors and executive pay
  • Filing history: 8 filing years from 2018 to 2025
  • Contacts: How to reach this organization
  • Money network: 3 filed money-flow records
  • 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.

  • High — Accountability: Independent voting board scored 0/100.
  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Sustainability: Operating margin scored 20/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Sustainability: Liabilities to assets ratio scored 17/100.