Advance Child Care Inc

Nonprofit profile at a glance

EIN
263759064
IRS 990 coverage
2017–2025
Forms available
Form 990 2025
Location
Palestine, TX, USA
Phone
9729895637
Rating
79
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Youth Development Programs

Reported finances

Revenue
$7,010,689
Expenses
$6,546,646
Assets
$3,912,028
Liabilities
$396,830

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

Leadership & pay

5 people listed

Executive titles in this filing

  • RUSSELL SMITH (PRESIDENT)
  • DONNA MASTERSON (VICE PRESIDENT)

Highest reported compensation

  • RUSSELL SMITH (PRESIDENT): $155,163 total reported compensation
  • TINA SMITH (CO-FOUNDER): $124,064 total reported compensation

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

Overview

Mission

Providing direct child care services and unaffiliated cacfp.

What it reported doing in 2025

Provided child care services for 240 children and 40 staff members

Operating model

Revenue model
Grant-funded. 92% 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. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 96
  • Transparency & Controls: 70
  • Accountability: 65
  • Sustainability: 41
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 93.2%; rating input score 93
  • Program expense ratio: 99.7%; rating input score 100
  • Fundraising efficiency: $14,548.39 raised per $1 spent on fundraising; rating input score 100; 100th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 75%; rating input score 75; 14th percentile among comparable filings
  • Governance controls: 4 of 8 controls in place; rating input score 50
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 6.6%; rating input score 47; 47th percentile among comparable filings
  • Total-asset coverage ratio: 0.6; rating input score 20; 20th percentile among comparable filings
  • Liabilities to assets ratio: 0.1; rating input score 48; 48th percentile among comparable filings
  • Officer compensation ratio: 4.3%; rating input score 62; 62nd percentile among comparable filings

Growth

  • Program expense growth: 39.5% per year; rating input score 100; 95th percentile among comparable filings
  • Revenue growth: 10.5% per year; rating input score 100; 67th percentile among comparable filings
  • Asset growth: 8.4% per year; rating input score 100; 51st percentile among comparable filings

Details

  • Where the money goes: 93.2% of revenue deployed · 99.7% of spending went to programs
  • Governance: 3 of 4 board members independent · 4 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $6.5M in reported program spending
  • Leadership: top reported pay $155K · 5 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 27 of 27 current checks pass
  • Schedules: 5 filed schedules · includes major donors and executive pay
  • Filing history: 9 filing years from 2017 to 2025
  • Contacts: How to reach this organization
  • Money network: 2 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.

  • Review — Accountability: Governance controls: 3 of 7 not reported.
  • Moderate — Sustainability: Operating margin scored 47/100.
  • High — Sustainability: Total-asset coverage ratio scored 20/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 48/100.