Challenge Industries INC FY2020 filing

Tax-deductible

Ithaca, NY501(c)(3)Since 1968EmploymentEIN 16-0956917Revenue $4.4M in FY2020

On file with the IRSaboutchallenge.org950 Danby Rd Ste 179, 14850-5793 · Ithaca, NYTax-exempt since Jun 1968Publicly supported charity — 170(b)(1)(A)(vi)

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To provide habilitation, rehabilitation, and employment services to individuals with disabilities and other employment barriers.

501(c)(3) charity; gifts are tax-deductible.
67¢ of each $1 spent went to programs.
$113K paid to officers and key staff.
Mission: Form 990 Part I, line 1 · Status: IRS Pub. 78 · Programs: Part IX · Pay: Part VII

Before you give

FY2020 · Form 990Independent: from IRS data, not the org
Download 990
IRS status
501(c)(3)
not on the IRS revocation list
Looks good: listed by the IRS and not on the revocation list.
IRS BMF · Auto-Revocation List
Tax-deductible gifts
Yes
Donations are tax-deductible
Looks good: the IRS lists gifts to it as deductible.
IRS Pub. 78 · IRS BMF
Latest return
FY2025
latest Form 990
Looks good: the latest return is for FY2025, 1 tax year back; within 2 tax years.
IRS e-file · Filing history
Surplus or deficit
5 of 6
filings with a surplus
Average surplus $619K a year · 13% of revenue · last 6 filings
Fine: a surplus in 5 of the last 6 filings.
Pt I · Ln 19 · 6 filings
Spent on programs
67%
of spending
Fine: 67% of spending went to programs; 65% to 75%.
Pt IX · Ln 25 · col B
Pay to officers and key staff
$113K
to officers and key staff · 3% of spending
Looks good: pay to officers and key staff is 3% of spending; 15% or less.
Pt VII · Sec A
Cash reserves
2 mo
of spending, in cash
Fine: 2.3 months of spending in cash; 1 to 3.
Pt X · Ln 1–2 · Pt I · Ln 18
Named funders
1
named funder · $10K
Fine: 1 funder names it on their filings; under 3.
Funders’ Sch. I, 990-PF
Liabilities
$2.2M
97% of total assets
Concern: liabilities are 97% of assets; over 80%.
Pt X · Ln 26
Independent board members
13
of 13 voting members
Looks good: 13 of 13 voting members are independent, a majority.
Pt VI · Ln 1a–1b
Looks goodFineWorth a lookConcernNo data yetTap a box for the reason.
Revenue
$4.4M
Spent
$4.5M
To programs
67%
Net assets
$78K
By yearFY2020–FY2025
Revenue
$4.4M
FY2020
Tap a bar for its year
Revenue by fiscal year
FY2020$4.4M
FY2021$3.9M
FY2022$4.4M
FY2023$3.4M
FY2024$5.4M
FY2025$6.1M
Expenses
$4.5M
FY2020
Tap a bar for its year
Expenses by fiscal year
FY2020$4.5M
FY2021$3.3M
FY2022$3.1M
FY2023$3.4M
FY2024$4.9M
FY2025$4.8M
Net assets
$78K
FY2020
Tap a bar for its year
Net assets by fiscal year
FY2020$78K
FY2021$776K
FY2022$2.4M
FY2023$2.4M
FY2024$2.9M
FY2025$3.8M

From the FY2020 Form 990 · figures checked against the IRS filing · see the original

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You’re viewing the FY2020 filing — not the latest on file. See the latest (FY2025) →

Is it real?

Yes. Never revoked by the IRS. Latest filing on record: FY2025. IRS ruling in Jun 1968.

IRS Pub. 78 · IRS Auto-Revocation List · IRS Business Master File

Where the money goes

67 cents of each dollar spent went to programs.

Program services 67% · $3.0M Management & general 28% · $1.3M Fundraising 4% · $186K

Form 990 Part IX, line 25, columns B–D. Every line is in By the numbers.

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Who runs it and what they're paid

14 people listed on the 990; $113K paid to officers and key staff.

Part VII, Section A · reportable compensation
Executive Director
$113,079Pt VII · Sec A
Treasurer
$0Pt VII · Sec A
Board Member
$0Pt VII · Sec A
Board Member
$0Pt VII · Sec A
Board Member
$0Pt VII · Sec A
Board Member
$0Pt VII · Sec A
Vice Chair
$0Pt VII · Sec A
Secretary
$0Pt VII · Sec A

Allen Connely’s $285K as President and CEO is at the 95th percentile of top reported officer pay among 1245 $1–10M employment nonprofits. Peer set: organizations in the same NTEE major field of work and revenue-size band, compared on each org’s own highest-paid officer/key-employee, from Form 990 Part VII / 990-PF Part VIII. Descriptive placement, not a verdict on whether the pay is appropriate.

Compensation history total reportable pay by year · 2 named individuals · Part VII

NameFY2025FY2024FY2023FY2022FY2020
Allen Connely$284,551$240,240$205,242$228,557—
Joseph Sammons————$113,079

Total reportable compensation (Form 990 Part VII column D / Schedule J column E) by filing year, matched by name within this organization. The Schedule J base / bonus / deferred breakdown is not parsed into this dataset.

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Questions the 990 asks

The form asks each of these directly. These are the filed answers.

  • Family or business ties among officersPt VI · Ln 2No
  • Top official's pay set by an independent reviewPt VI · Ln 15aYes

Programs and updates

Challenge Industries INC is an employment nonprofit based in Ithaca, NY, formed in 1968.

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Provided by the organization

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3 programs · $3.0M · in their own filed words · FY2020
01

Challenge's social enterprises provide integrated work settings for challenge program participants, where they are able to develop marketable skills and gain valuable work experience. These businesses are a fundamental part of challenge's apparatus; allowing us to provide employment opportunities to individuals with disabilities and…

$1.3Mprogram expense
02

Supported employment provides ongoing support services to adults with developmental and mental health disabilities to maintain community employment at competitive wages with local employers including work in challenge businesses.

$898Kprogram expense
03

Pre-vocational services are designed for individuals with developmental disabilities who are interested in working but require extensive preparation and support to work and be part of their community.

$769Kprogram expense

Funders

Who pays for it.

From grant filings on record. Receipts are incomplete: individual donors are never listed.

Grants

Schedule I · funders on record
Grants received · FY2025
Total grants receivedfrom 1 funder$10K

By the numbers

The FY2020 990, line by line.

1The main four
Money inPt VIII
$4.4M
Ln 12
Fees for servicesLn 2g$3.5M
Gifts and grantsLn 1h$825K
Other incomeLn 4–11$162K
Money outPt IX
$4.5M
Ln 25
Programscol B$3.0M
Managementcol C$1.3M
Fundraisingcol D$186K
Owns and owesPt X
$78K
net assets · Ln 32
Cash and savingsLn 1–2$855K
Total assetsLn 16$2.3M
LiabilitiesLn 26$2.2M
PeoplePt VI, VII
14
listed · VII A
PaidVII A1
Voting boardVI 1a13
IndependentVI 1b13
2In more detail
Revenue in detailPt VIII
Gifts and grantsLn 1h$825K
Government grantsLn 1e$654K
Fees for servicesLn 2g$3.5M
Investment incomeLn 3$994
Other incomeLn 4–11$162K
Gains on assetsLn 7$270
Total revenueLn 12$4.4M
Assets in detailPt X, end of year
CashLn 1$727K
SavingsLn 2$129K
Cash and savings togetherLn 1–2$855K
Land, buildings, equipmentLn 10c$142K
Other assetsLn 15$26K
Total assetsLn 16$2.3M
LiabilitiesLn 26$2.2M
Net assetsLn 32$78K
OperationsPt I, VI
EmployeesI 5164
VolunteersI 63
Fiscal year endsHeaderDecember
Conflict-of-interest policyVI 12aYes
Whistleblower policyVI 13Yes
Records policyVI 14Yes
3Year over year
Balance sheet, start vs end of yearPt X · col A, B
LineStart FY20End FY20
Cash and savingsLn 1–2$527K$855K
Land, buildings, equipmentLn 10c$148K$142K
Total assetsLn 16$2.3M$2.3M
LiabilitiesLn 26$2.2M$2.2M
Net assetsLn 32$79K$78K
4Every line
Statement of functional expensesPt IX · every line
LineTotalProgramsManagementFundraising
Pay of current officers, directors and key staffLn 5$142K$142K
Other salaries and wagesLn 7$2.8M$2.0M$588K$140K
Pension plan contributionsLn 8$67K$51K$14K$1K
Other employee benefitsLn 9$484K$370K$105K$10K
Payroll taxesLn 10$201K$154K$44K$4K
Legal feesLn 11b$9K$2K$6K$271
Accounting feesLn 11c$30K$8K$21K$913
Investment management feesLn 11f$147$147
Other fees for servicesLn 11g$35K$7K$26K$2K
Advertising and promotionLn 12$8K$372$8K
Office expensesLn 13$100K$43K$48K$8K
OccupancyLn 16$212K$151K$55K$7K
InterestLn 20$105K$81K$24K$521
Depreciation, depletion and amortizationLn 22$137K$11K$126K$139
InsuranceLn 23$42K$33K$9K$428
Other expenses (24a–d)Ln 24$121K$63K$54K$4K
Total functional expensesLn 25$4.5M$3.0M$1.3M$186K

Filing history

YearMoney inMoney outIn minus outNet assetsDownload
FY2025 Latest $6.1M$4.8M$1.3M$3.8M 990 PDF
FY2024 $5.4M$4.9M$515K$2.9M 990 PDF
FY2023 $3.4M$3.4M$4K$2.4M 990 PDF
FY2022 $4.4M$3.1M$1.4M$2.4M 990 PDF
FY2021 $3.9M$3.3M$532K$776K 990 PDF
FY2020 Viewing $4.4M$4.5M−$4K$78K 990 PDF

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Schedules filed Part IV

III · Programs I · Grants R · Related orgs G · Fundraising L · Interested persons A · Public support F · Foreign M · Noncash
See the full FY2020 990 (6 parts)
Part I · Summary $4,447,194 revenue, 12 lines filed
I-8 Contributions and grantsPrior year $1,019,090$824,766
I-9 Program service revenuePrior year $4,275,459$3,459,151
I-10 Investment incomePrior year −$11,022$994
I-11 Other revenuePrior year $164,435$162,283
I-12 Total revenuePrior year $5,447,962$4,447,194
I-13 Grants and similar amounts paidPrior year $0$0
I-14 Benefits paid to membersPrior year $0$0
I-15 Salaries and benefitsPrior year $4,502,904$3,651,343
I-16a Professional fundraising feesPrior year $0$0
I-17 Other expensesPrior year $899,085$800,089
I-18 Total expensesPrior year $5,401,989$4,451,432
I-19 Revenue less expensesPrior year $45,973−$4,238
Part VI · Governance 13 of 13 board members independent, no flags
VI-1a Voting members of the governing body13
VI-1b Independent voting members13
VI-2 Family or business relationship among officers or directorsNo
VI-12a Written conflict of interest policyYes
VI-13 Written whistleblower policyYes
VI-14 Document retention and destruction policyYes
VI-15a Process for setting top official's payYes
Part VIII · Statement of revenue $4,447,194 across 9 lines filed
Lines not itemized here account for $1,482 of total revenue; see the IRS return.
VIII-1e Government grants$654,404
VIII-1f All other contributions, gifts and grants$170,362
VIII-1h Total contributions, gifts and grants$824,766
VIII-2a-f Program service revenue, itemized rows (sum of 2a–2f as filed)Related to mission $3,459,151$3,459,151
VIII-3 Investment incomeExcluded from tax $724$724
VIII-6 Net rental income or lossUnrelated business $142,202 · Excluded from tax $18,080$160,282
VIII-7 Net gain or loss on sales of assetsExcluded from tax $270$270
VIII-11a-d Other revenue, itemized rows (sum of 11a–11d as filed)Related to mission $519$519
VIII-12 Total revenueRelated to mission $3,461,152 · Unrelated business $142,202 · Excluded from tax $19,074$4,447,194
Part IX · Statement of functional expenses $4,451,432 across 16 lines filed
IX-5 Pay of current officers, directors and key staffManagement $141,959$141,959
IX-7 Other salaries and wagesPrograms $2,028,348 · Management $588,376 · Fundraising $140,371$2,757,095
IX-8 Pension plan contributionsPrograms $50,946 · Management $14,432 · Fundraising $1,324$66,702
IX-9 Other employee benefitsPrograms $369,819 · Management $104,763 · Fundraising $9,607$484,189
IX-10 Payroll taxesPrograms $153,826 · Management $43,576 · Fundraising $3,996$201,398
IX-11b Legal feesPrograms $2,454 · Management $6,146 · Fundraising $271$8,871
IX-11c Accounting feesPrograms $8,260 · Management $20,687 · Fundraising $913$29,860
IX-11f Investment management feesManagement $147$147
IX-11g Other fees for servicesPrograms $7,410 · Management $25,816 · Fundraising $1,994$35,220
IX-12 Advertising and promotionManagement $372 · Fundraising $7,710$8,082
IX-13 Office expensesPrograms $43,405 · Management $48,125 · Fundraising $8,343$99,873
IX-16 OccupancyPrograms $150,840 · Management $54,841 · Fundraising $6,801$212,482
IX-20 InterestPrograms $80,613 · Management $24,231 · Fundraising $521$105,365
IX-22 Depreciation, depletion and amortizationPrograms $11,139 · Management $125,527 · Fundraising $139$136,805
IX-23 InsurancePrograms $32,815 · Management $8,851 · Fundraising $428$42,094
IX-24 Other expenses (24a–d)Programs $63,478 · Management $54,218 · Fundraising $3,594$121,290
IX-25 Total functional expensesPrograms $3,003,353 · Management $1,262,067 · Fundraising $186,012$4,451,432
Part X · Balance sheet $2,312,772 assets, 16 lines filed
X-1 Cash, non-interest-bearingStart of year $398,377$726,818
X-2 Savings and temporary cash investmentsStart of year $128,230$128,551
X-4 Accounts receivableStart of year $1,573,358$1,194,905
X-8 Inventories for sale or useStart of year $1,632$1,250
X-9 Prepaid expenses and deferred chargesStart of year $4,235$92,984
X-10c Land, buildings and equipment, netStart of year $147,680$142,134
X-15 Other assetsStart of year $16,083$26,130
X-16 Total assetsStart of year $2,269,595$2,312,772
X-17 Accounts payable and accrued expensesStart of year $262,374$382,035
X-19 Deferred revenueStart of year $162,973$18,944
X-25 Other liabilitiesStart of year $1,522$0
X-26 Total liabilitiesStart of year $2,190,962$2,234,479
X-27 Net assets without donor restrictionsStart of year $48,591$54,853
X-28 Net assets with donor restrictionsStart of year $30,042$23,440
X-32 Total net assets or fund balancesStart of year $78,633$78,293
X-33 Total liabilities and net assetsStart of year $2,269,595$2,312,772
Part XI · Reconciliation of net assets $78,293 net assets at year end
XI-1 Total revenue$4,447,194
XI-2 Total expenses$4,451,432
XI-3 Revenue less expenses−$4,238
XI-4 Net assets at start of year$78,633
XI-9 Other changes in net assets$3,898
XI-10 Net assets at end of year$78,293

Form 990 e-file (XML) FY2020 from the IRS · Classification, formation year and address from the IRS Business Master File

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