Headwaters Inc
Public records show a registered, tax-exempt organization in good standing.
What it says it does
In response to water-quality concerns, community members formed Headwaters in 2005 to promote local water resource management and encourage the stewardship of Letcher County waterways. Headwaters works with a variety of community members, local educators, elected leaders, researchers and academics to lead water sampling efforts and school and community environmental education.
- Income
- $89,266
- Spending
- $84,169
- Spent on programs
- 100%
- Reserves
- 15.5 months of spending
- Largest source of income
- donations and private grants, 56%
- Employees
- 0
- Volunteers
- 0
- Highest pay
- $87,360, mtn drinking water coordinator
Source: Form 990 for the year ending September 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Financial health
Strong: 95 out of 100. Higher than 78% of charities in its peer group (environment, under $250k).
Reserves
35 of 35Spendable reserves would cover 15.5 months of spending.
Debt
20 of 20It owes 0% of what it owns.
Living within its means
15 of 15Income exceeded spending by 6% of income.
Income trend
10 of 15Income fell 7% on the year before.
Spending floor
15 of 15100% of spending went to programs and raising each dollar of donations cost 0 cents.
Source: Form 990 for the year ending September 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Governance
Fair: 55 out of 100. Higher than 34% of charities in its peer group (environment, under $250k).
Independent board
25 of 255 of 5 voting board members are independent.
Conflict of interest policy
0 of 15Reports no written conflict of interest policy.
Whistleblower policy
0 of 8Reports no written whistleblower policy.
Record keeping policy
7 of 7Has a written policy on keeping and destroying records.
Board minutes
5 of 5Keeps minutes of board meetings.
Board sees the tax return
0 of 10Did not give the board a copy of this return before filing it.
Pay set independently
0 of 5Reports no independent review process for its chief executive's pay.
No reported misuse
10 of 10Reports no diversion of assets, excess benefits or loans to insiders.
Source: Form 990 for the year ending September 30, 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 (2)
- $45,589 spent. Because the three rivers, Kentucky, Cumberland, and Big Sandy, with headwaters in Letcher County continue to have frequent water quality violations, Headwaters' work to assist in determining causes and working toward solutions continues. One aspect of this work is through the continuation of our partnership on the Mountain Drinking Water Project (MDWP). This project is a collaboration between US Academic leads, Dr. Jason Unrine and Dr. Anna Hoover with the University of Kentucky (UK) and Headwaters' Research Coordinator, Deborah Sexton. As work on the project continues, the number of citizen scientists (CS) has expanded through the recruitment of additional local citizen scientists to collect water samples from their homes which are analyzed to help determine the causes of and solutions for problems related to disinfection byproducts. Sixteen CS have completed training administered by our research coordinator in the proper procedure to collect samples from their homes on designated days which were/are placed in coolers with ice packs, promptly collected from the homes by the research coordinator, and safely packaged on additional ice for overnight shipment to the UK lab for extraction. Required supplies are ordered and replenished by the research coordinator for each sampling. All CS are near the completion of their second year of sampling. All collected data will be used in analyses and reporting. A community report out is scheduled for November 2025. While there is on-going communication between the CS and the research coordinator, there is also regular correspondence and meetings among the academic leads, the research coordinator, and those completing the analyses at the UK lab to maintain and keep the lines of communication open and the project moving forward as designed. Citizen scientists have contact information for the academic leads as well. In addition, members of other community based organizations, the health sector, water utilities companies, and governing agencies on both the local and state levels continue their work on the Stakeholder Consultation Core to provide input, facilitate dialogue, and to assist in building trust in all partners involved. The collaboration among all those involved works toward a major goal of Headwaters: to assist in the solution(s) to bring clean, safe water to all.
- $38,580 spent. Because Headwaters, Inc.'s vision is to be a part of a community where members are committed to and take responsibility for clean water and a desirable environment, our executive director, Justin Branham, works toward the development and implementation of projects, relationships, collaborations, and other endeavors committed to that vision. Justin Branham was hired as Executive Director in May of 2024. He works as a liaison with many community agencies and organizations to share and expand Headwaters' vision, goals, and objectives. Those facets include small municipalities, local governments, and the general public. In addition, he works with grant facilitation, including the Mountain Drinking Water Project, and documentation to share ideas, identify issues, provide background knowledge, and propose solutions to address specific water quality and environmental issues. Branham is very community-minded and has a strong scientific background. His work as our executive director melds the two together and provides a key component as Headwaters moves forward in its efforts to take responsibility for clean water and a desirable environment.
Source: Form 990 for the year ending September 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Legitimacy checks
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.
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.
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.
Is it keeping up with its IRS filings? Passed.
Most recent return on file covers the year ending September 2025.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
How long has it been tax-exempt? Passed.
Recognized by the IRS since January 2009.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
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.