Hope for Honduran Children Foundation

Nonprofit profile at a glance

EIN
202432585
IRS 990 coverage
2019–2024
Forms available
Form 990 2024
Location
Shaker Heights, OH, USA
Phone
2164031051
Rating
79
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Philanthropy, Charity, Voluntarism Promotion

Official website

Reported finances

Revenue
$156,995
Expenses
$169,458
Assets
$744,200
Liabilities
$0

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

Leadership & pay

9 people listed

Executive titles in this filing

  • Karen Godt (Executive Director)

Highest reported compensation

  • Karen Godt (Executive Director): $42,000 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 mission is to protect, inspire, nurture, educate, train, and challenge disadvantaged vulnerable Honduran children. We mentor and provide opportunities to help them reach their full potential and become self-sufficient, caring, responsible adults. Extreme poverty, lack of opportunity, drugs and gang violence contribute to a catastrophic struggle for human survival in Honduras. Most at risk are rural youth who migrate to the cities in search of opportunity where they are confronted with hunger, unemployment, disease, drug cartels, and brutal gangs specializing in trafficking, killings, kidnappings, rape and extortion. A United Nations Global Study advocates strong investment in education and employability for vulnerable children, youth, orphans, and those without access to public services. These are the children the Hope for Honduran Children Foundation works to serve, educate, and provide opportunities.

What it reported doing in 2024

EDUCATION AND SPONSORSHIP The United Nations reports that Honduras has the worst educational system in Central America and 51% of Honduran children receive no education after sixth grade. Extreme poverty and lack of education are very pressing problems that are prevalent for 75% of the population living in the mountain villages. In the rural communities most adults are unemployed and 2 in 10 are illiterate. Without the benefit of a good education, the population we serve has no possible escape from their cycle of deplorable poverty. In 2024 H4HC provided scholarships for 14 university scholars plus 4 high school students in our 2 residential homes. Additional support was provided to three students not living in our residences. Our long-term residential program requires exemplary character and academic focus while students are provided safe shelter, food, a quality education, clothing, medical care and abundant love. It is a family environment with rigorous expectations. The students quickly learn the benefits of integrity, self-discipline and honor and are supported through their studies at the university. H4HC students are thriving and graduates quickly find excellent employment.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
Distribution model
Grant intermediary. The nonprofit sent 65% of its reported program spending out as grants.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. The filing reports few safeguards for money sent abroad and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 97
  • Transparency & Controls: 72
  • Accountability: 68
  • Sustainability: 46
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 95.2%; rating input score 95
  • Fundraising efficiency: $220.64 raised per $1 spent on fundraising; rating input score 92; 92nd percentile among comparable filings

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 22nd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: 1 of 8 controls in place; rating input score 12
    • Claims monitoring procedures: Pass
    • Requires narrative reports: Fail
    • Conducts field audits: Fail
    • May suspend future funding: Fail
    • Requires financial reports: Fail
    • Conducts site visits: Fail
    • Requires grant agreements: Fail
    • May require repayment: Fail
  • Grant itemization coverage: 91.9%; rating input score 92; 53rd percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 88.9%; rating input score 89; 24th percentile among comparable filings
  • Governance controls: 3 of 8 controls in place; rating input score 38
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Fail
    • 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: -7.9%; rating input score 25; 25th percentile among comparable filings
  • Total-asset coverage ratio: 4.39; rating input score 77; 77th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 80; 80th percentile among comparable filings
  • Officer compensation ratio: 24.8%; rating input score 15; 15th percentile among comparable filings

Growth

  • Program expense growth: 2.2% per year; rating input score 100; 40th percentile among comparable filings
  • Revenue growth: -1.5% per year; rating input score 0; 18th percentile among comparable filings
  • Asset growth: 7.9% per year; rating input score 100; 59th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 95.2% of spending went to programs
  • Governance: 8 of 9 board members independent · 3 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $161K in reported program spending
  • Leadership: top reported pay $42K · 9 people listed
  • Consistency: 39 of 40 current checks pass · 1 finding to review
  • Schedules: 4 filed schedules · includes major donors and foreign activity
  • Filing history: 6 filing years from 2019 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: Filed and resolved organization relationships.
  • 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: Foreign activity oversight: 7 of 8 not reported.
  • Moderate — Accountability: Governance controls: 4 of 7 not reported.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Operating margin scored 25/100.
  • High — Sustainability: Officer compensation ratio scored 15/100.
  • Review — Transparency & Controls: Foreign grant itemization did not reconcile in the filed values.