Promise Academy Inc

Nonprofit profile at a glance

EIN
201608155
IRS 990 coverage
2009–2024
Forms available
Form 990 2024
Location
Memphis, TN, USA
Phone
9013244456
Rating
72
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Charter Schools

Official website

Reported finances

Revenue
$5,159,361
Expenses
$5,386,522
Assets
$3,749,890
Liabilities
$876,637

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

Leadership & pay

16 people listed

Executive titles in this filing

  • CHARLES GERBER (PRESIDENT & CHAIRMAN)
  • PATRICK WASHINGTON (EXECUTIVE DIRECTOR)

Highest reported compensation

  • PATRICK WASHINGTON (EXECUTIVE DIRECTOR): $175,885 total reported compensation
  • KIASI MALONE (CHIEF OF ACCOUNTABILITY): $162,284 total reported compensation
  • WILLIE RICHARDSON (CHIEF OF TECHNOLOGY): $110,335 total reported compensation

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

Overview

Mission

Our central and only work is to teach and inspire the mind, body and spirit of our children so that they can succeed in any academic or cultural setting. Promise academy is committed to preparing children to excel in the nation's most regorous schools.

What it reported doing in 2024

Our central work is to teach and inspire the mind, body and spirit of our children so that they can rise above the rest and succeed in any academic and cultral setting. Promise academy is committed to preparing children to excel in the nation's most rigorous schools. The school provides an alternative means within the public school system to accomplish necessary outcomes of education.

Operating model

Revenue model
Grant-funded. 68% of the money available for current operations came from government grants.
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. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 67
  • Transparency & Controls: 65
  • Accountability: 95
  • Sustainability: 26
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 76.7%; rating input score 77
  • Program expense ratio: 73.5%; rating input score 73
  • 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: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 8 of 9 controls in place; rating input score 89
    • 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: Fail
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -4.4%; rating input score 21; 21st percentile among comparable filings
  • Total-asset coverage ratio: 0.7; rating input score 26; 26th percentile among comparable filings
  • Liabilities to assets ratio: 0.23; rating input score 40; 40th percentile among comparable filings
  • Officer compensation ratio: 10.7%; rating input score 28; 28th percentile among comparable filings

Growth

  • Program expense growth: 2.3% per year; rating input score 100; 24th percentile among comparable filings
  • Revenue growth: 2.5% per year; rating input score 100; 23rd percentile among comparable filings
  • Asset growth: 12.6% per year; rating input score 100; 68th percentile among comparable filings

Details

  • Where the money goes: 76.7% of revenue deployed · 73.5% of spending went to programs
  • Governance: 10 of 10 board members independent · 8 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $4M in reported program spending
  • Leadership: top reported pay $176K · 16 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 2 contractors listed · $391K reported
  • Consistency: 23 of 23 current checks pass
  • Schedules: 8 filed schedules · includes major donors and executive pay
  • Filing history: 15 filing years from 2009 to 2024
  • Contacts: How to reach this organization
  • Money network: 5 filed money-flow records
  • Related organizations: 1 filed related-organization link
  • 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 — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Sustainability: Operating margin scored 21/100.
  • High — Sustainability: Total-asset coverage ratio scored 26/100.
  • Review — Accountability: Governance controls: Audit committee oversight not reported.
  • High — Sustainability: Officer compensation ratio scored 28/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 40/100.