The Highlands Community Association Inc

Nonprofit profile at a glance

EIN
841967796
IRS 990 coverage
2022–2024
Forms available
Form 990 2024
Location
Scottsdale, AZ, USA
Phone
4809217500
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Homeowners & Tenants Associations

Reported finances

Revenue
$3,895,371
Expenses
$4,086,638
Assets
$272,285
Liabilities
$311,524

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

Leadership & pay

6 people listed

Executive titles in this filing

  • MICHAEL CRAHAN (PRESIDENT)
  • DREW STEWART (VICE PRESIDENT)

People named in this filing

  • BOSTON HENRY (DIRECTOR)
  • PETER BARNHART (DIRECTOR)
  • TODD JOHNSON (DIRECTOR)

Selected names, not a complete roster or a statement of current roles. Open leadership details for the complete filed list.

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

Overview

Mission

The highlands community association, inc. (the "association") is a Texas non-profit corporation organized to provide quasi-governmental, city-like municipal services, such as, architectural zoning and monitoring; safety law enforcement patrol; common area maintenance, repair, and improvement; and park, lake, green space and trail maintenance and improvement for the benefit and betterment of the highlands community (the "community").

What it reported doing in 2024

The association maintains, irrigates and landscapes boulevards, esplanades, entrances, roadsides and common areas. This maintenance enhances and beautifies the community and is necessary for public safety and health reasons. The association also maintains the private roads within the subdivision. In addition, the association provides and maintains a golf course, recreational facilities, lakes, parks and green space, and scenic trails. It procures the services of a management company to administer billing and collection of assessments. Other miscellaneous expenses include insurance and legal expenses.

Operating model

Revenue model
Earned-program. 100% 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

STRONG - 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: 88
  • Transparency & Controls: 90
  • Accountability: 64
  • Sustainability: 21
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 97.5%; rating input score 97
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 1 of 7 controls in place; rating input score 14
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -4.9%; rating input score 20; 20th percentile among comparable filings
  • Total-asset coverage ratio: 0.07; rating input score 2; 2nd percentile among comparable filings
  • Liabilities to assets ratio: 1.14; rating input score 3; 3rd percentile among comparable filings
  • Officer compensation ratio: 0%; rating input score 91; 91st percentile among comparable filings

Growth

  • Program expense growth: 91.4% per year; rating input score 100; 99th percentile among comparable filings
  • Revenue growth: 75.8% per year; rating input score 100; 99th percentile among comparable filings
  • Asset growth: -41.2% per year; rating input score 0; 0th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 97.5% of spending went to programs
  • Governance: 6 of 6 board members independent · 1 of 7 filing controls reported
  • Programs: 3 filed program accomplishments · $4M in reported program spending
  • Leadership: top reported pay $0 · 6 people listed
  • Highest-paid contractors: 4 contractors listed · $2.4M reported
  • Consistency: 20 of 20 current checks pass
  • Schedules: 2 filed schedules
  • Filing history: 3 filing years from 2022 to 2024
  • Contacts: How to reach this organization
  • 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: Governance controls: 5 of 6 not reported.
  • High — Sustainability: Operating margin scored 20/100.
  • High — Sustainability: Total-asset coverage ratio scored 2/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Liabilities to assets ratio scored 3/100.