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Challenge Industries Inc

EIN 16-0956917 · Ithaca, NY

Public records show a registered, tax-exempt organization in good standing.

LegitimacyPassesRegistration and standingFinancial healthFair68 out of 100GovernanceStrong93 out of 100Impact evidenceDescribes programsHow well its results are evidenced

What it says it does

TO PROVIDE HABILITATION, REHABILITATION, AND EMPLOYMENT SERVICES TO INDIVIDUALS WITH DISABILITIES AND OTHER EMPLOYMENT BARRIERS.

Income
$6.1 million
Spending
$4.8 million
Spent on programs
56%
Reserves
4.8 months of spending
Largest source of income
fees for its services, 62%
Employees
164
Volunteers
3
Highest pay
$284,551, president and ceo

Source: Form 990 for the year ending December 31, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Financial health

Fair: 68 out of 100. Higher than 40% of charities in its peer group (employment, $1m to $10m).

  • Reserves

    20 of 35

    Spendable reserves would cover 4.8 months of spending.

  • Debt

    10 of 20

    It owes 36% of what it owns.

  • Living within its means

    15 of 15

    Income exceeded spending by 21% of income.

  • Income trend

    15 of 15

    Income rose 13% on the year before.

  • Spending floor

    8 of 15

    56% of spending went to programs and raising each dollar of donations cost 0 cents.

Source: Form 990 for the year ending December 31, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Governance

Strong: 93 out of 100. Higher than 54% of charities in its peer group (employment, $1m to $10m).

  • Independent board

    18 of 25

    3 of 4 voting board members are independent.

  • Conflict of interest policy

    15 of 15

    Has a written conflict of interest policy.

  • Whistleblower policy

    8 of 8

    Has a written whistleblower policy.

  • Record keeping policy

    7 of 7

    Has a written policy on keeping and destroying records.

  • Board minutes

    5 of 5

    Keeps minutes of board meetings.

  • Board sees the tax return

    10 of 10

    Gave the board a copy of this return before filing it.

  • Pay set independently

    5 of 5

    Sets its chief executive's pay through independent review and comparison.

  • Independent check of accounts

    15 of 15

    Its accounts were audited by an independent accountant.

  • No reported misuse

    10 of 10

    Reports no diversion of assets, excess benefits or loans to insiders.

Source: Form 990 for the year ending December 31, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Impact evidence

Describes programs. Its tax return describes what it does but we have found no measurable results in it.

Programs described in its return (4)
  1. $1.1 million spent. 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 SOCIAL, ECONOMIC, OR OTHER BARRIERS TO EMPLOYMENT. THERE ARE THREE SOCIAL ENTERPRISES CURRENTLY OPERATING AT CHALLENGE, INCLUDING SHREDDING AND CONTRACT PRODUCTION (PRE-VOCATIONAL) AND CONTRACT STAFFING.
  2. $1.0 million spent. 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. CHALLENGE ASSISTED WORKERS WITH DISABILITIES TO MAINTAIN EMPLOYMENT. THESE SERVICES INCLUDE FUNDING FROM OPWDD (SE) AND OMH (OISE, ACE AND TEP); AND SED (ACCESS-VR); AND DSS.
  3. $399,775 spent. 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. THESE SERVICES PROVIDE OPPORTUNITIES FOR UNPAID WORK EXPERIENCE WITH LOCAL EMPLOYERS, TIME LIMITED UNPAID WORK OPPORTUNITIES FOR SKILL BUILDING, VOCATIONAL EXPLORATION THROUGH JOB TRY-OUTS AND JOB SHADOWING, AND VOLUNTEER OPPORTUNITIES WITH LOCAL NOT-FOR-PROFIT AGENCIES. THESE SERVICES INCLUDE FUNDING FROM OPWDD.
  4. $75,288 spent. JOB SERVICES

Source: Form 990 for the year ending December 31, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Legitimacy checks

  1. Is it registered with the IRS? Passed.

    Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  2. Has the IRS revoked its tax-exempt status? Passed.

    Not on the IRS automatic revocation list.

    Source: Automatic revocation of exemption list, Internal Revenue Service, file dated November 6, 2026.

  3. Are donations tax-deductible? Passed.

    On the IRS list of organizations eligible to receive tax-deductible contributions.

    Source: Publication 78 data: organizations eligible for tax-deductible contributions, Internal Revenue Service, file dated October 13, 2026.

  4. Is it keeping up with its IRS filings? Passed.

    Most recent return on file covers the year ending December 2025.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  5. How long has it been tax-exempt? Passed.

    Recognized by the IRS since June 1968.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  6. Is it in good standing with state regulators? Passed.

    Not on California's list of charities barred from soliciting. Other states are not yet checked.

    Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated November 4, 2026.

Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.