H U G S for Horses and Children

Nonprofit profile at a glance

EIN
261894961
IRS 990 coverage
2019–2024
Forms available
Form 990 2024, Form 990-EZ 2018, Form 990-N 2013
Location
Byron Center, MI, USA
Phone
6163125254
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Animal Protection and Welfare
Affiliation
Christianity

Reported finances

Revenue
$378,217
Expenses
$298,667
Assets
$880,239
Liabilities
$12,800

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

Leadership & pay

5 people listed

Executive titles in this filing

  • Lisa Carter (President)
  • John Haller (Vice President)

Highest reported compensation

  • Lisa Carter (President): $69,172 total reported compensation

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

Overview

Mission

HUGS exists to encourage mental, emotional, physical and social healing to hurting children and unwanted or rescued horses by providing them a safe environment to share and experience Hope, Understanding, Guidance and Support in a no-cost, safe Christian environment.

What it reported doing in 2024

Children who suffer from mental illness or emotional trauma attend sessions at the ranch where they are paired with the same horse and mentor each time they visit. This helps them develop healthy relationships and learn to trust. Volunteer mentors work with the children and provide a safe environment for them to share their stories. The children ride the horses as well as perform assigned tasks and chores around the ranch. Many of the horses have been rescued and the children help these horses to heal as well. In 2024, we held 459 sessions that benefited more then 100 children with the free services at HUGS Ranch. During 2024, individual volunteers and groups served as mentors and wranglers, fed the horses and did maintenance jobs large and small.

Operating model

Revenue model
Donor-supported. 97% of the money available for current operations came from contributions and gifts.
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.
  • Includes noncash contributions: Reported contributions include donated property or goods.

The verdict

SUPPORTED - The filed numbers largely add up and a large share of total spending goes to programs. A relatively small share of available resources goes toward mission work and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 62
  • Transparency & Controls: 92
  • Accountability: 78
  • Sustainability: 62
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 57.5%; rating input score 58
  • Program expense ratio: 71.9%; rating input score 72
  • Fundraising efficiency: $14.28 raised per $1 spent on fundraising; rating input score 49; 49th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 64th 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: 80%; rating input score 80; 21st percentile among comparable filings
  • Governance controls: 6 of 8 controls in place; rating input score 75
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • 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: Fail
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 21%; rating input score 75; 75th percentile among comparable filings
  • Total-asset coverage ratio: 2.95; rating input score 68; 68th percentile among comparable filings
  • Liabilities to assets ratio: 0.01; rating input score 43; 43rd percentile among comparable filings
  • Officer compensation ratio: 23.2%; rating input score 16; 16th percentile among comparable filings

Growth

  • Program expense growth: 13.8% per year; rating input score 100; 77th percentile among comparable filings
  • Revenue growth: 13.4% per year; rating input score 100; 79th percentile among comparable filings
  • Asset growth: 22.5% per year; rating input score 100; 87th percentile among comparable filings

Details

  • Where the money goes: 57.5% of revenue deployed · 71.9% of spending went to programs
  • Governance: 4 of 5 board members independent · 6 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $215K in reported program spending
  • Leadership: top reported pay $69K · 5 people listed
  • Consistency: 27 of 27 current checks pass
  • Schedules: 5 filed schedules · includes major donors
  • Filing history: 5 filing years from 2019 to 2024
  • 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 — Financial Efficiency: Mission deployment rate scored 58/100.
  • Moderate — Financial Efficiency: Fundraising efficiency scored 49/100.
  • Review — Accountability: Governance controls: 2 of 8 not reported.
  • High — Sustainability: Officer compensation ratio scored 16/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 43/100.