The Hope Effect

Nonprofit profile at a glance

EIN
472624962
IRS 990 coverage
2017–2025
Forms available
Form 990 2025, Form 990-EZ 2015
Location
Peoria, AZ, USA
Phone
6233418342
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Children's, Youth Services

Official website

Reported finances

Revenue
$994,358
Expenses
$766,049
Assets
$554,179
Liabilities
$24,959

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

Leadership & pay

7 people listed

Executive titles in this filing

  • JOSEPH DARAGO (EXECUTIVE DIRECTOR)
  • JOSHUA BECKER (PRESIDENT/CEO)

Highest reported compensation

  • JOSEPH DARAGO (EXECUTIVE DIRECTOR): $133,912 total reported compensation

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

Overview

Mission

Change how the world cares for orphans by implementing family-style care that provides opportunity for each child to flourish and thrive in a family environment.

What it reported doing in 2025

Family-style care programs: in sonora, michoacan, and jalisco, mexico, we have received government approval to develop and facilitate family-style care programs. We work with governments to implement these programs and get children out of orphanages and into loving families. The programs include recruiting, evaluating, and training foster families; assisting with child placement; and providing meaningful follow-up to families who welcome children into their homes. In nuevo leon, mexico, and mae sot, thailand, we work through partnerships to ensure more children have the opportunity to grow up in loving families.

Operating model

Revenue model
Donor-supported. 99% of the money available for current operations came from contributions and gifts.
Distribution model
Hybrid. The nonprofit split its reported program spending across 44% for direct work, and 56% for grants.
  • Includes noncash contributions: Reported contributions include donated property or goods.

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 fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 68
  • Transparency & Controls: 80
  • Accountability: 87
  • Sustainability: 53
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 62.9%; rating input score 63
  • Program expense ratio: 81.1%; rating input score 81
  • Fundraising efficiency: $17.03 raised per $1 spent on fundraising; rating input score 51; 51st percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: 2 of 8 controls in place; rating input score 25
    • 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: Pass
    • May require repayment: Fail
  • Grant itemization coverage: 99.7%; rating input score 100; 54th percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 85.7%; rating input score 86; 23rd percentile among comparable filings
  • Governance controls: 7 of 8 controls in place; rating input score 88
    • 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: Pass
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 23%; rating input score 76; 76th percentile among comparable filings
  • Total-asset coverage ratio: 0.72; rating input score 34; 34th percentile among comparable filings
  • Liabilities to assets ratio: 0.05; rating input score 44; 44th percentile among comparable filings
  • Officer compensation ratio: 17.5%; rating input score 20; 20th percentile among comparable filings

Growth

  • Program expense growth: 21.1% per year; rating input score 100; 81st percentile among comparable filings
  • Revenue growth: 19.8% per year; rating input score 100; 82nd percentile among comparable filings
  • Asset growth: 7.5% per year; rating input score 100; 46th percentile among comparable filings

Details

  • Where the money goes: 62.9% of revenue deployed · 81.1% of spending went to programs
  • Governance: 6 of 7 board members independent · 7 of 8 filing controls reported
  • Programs: 4 filed program accomplishments · $621K in reported program spending
  • Leadership: top reported pay $134K · 7 people listed
  • Consistency: 30 of 30 current checks pass
  • Schedules: 6 filed schedules · includes major donors and foreign activity
  • 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.

  • High — Transparency & Controls: Foreign activity oversight: 6 of 8 not reported.
  • Review — Financial Efficiency: Fundraising efficiency scored 51/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • Moderate — Sustainability: Total-asset coverage ratio scored 34/100.
  • High — Sustainability: Officer compensation ratio scored 20/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 44/100.