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Passes our checks

Challenge Detroit

EIN 45-3790122 · Royal Oak, MI

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

LegitimacyPassesRegistration and standingFinancial healthWeak30 out of 100GovernanceGood82 out of 100Impact evidenceDescribes programsHow well its results are evidenced

Points to look into

  • Raising each dollar of donations cost 105 cents.

These come from the organization's own tax return. There may be a good explanation; ask the charity.

What it says it does

TO RETAIN AND ATTRACT YOUNG LEADERS FROM ACROSS THE NATION TO THE REGION WHO HAVE THE COURAGE, PASSION, AND DRIVE TO MAKE A DIFFERENCE, AND TO PROVIDE THEM WITH THE OPPORTUNITY TO COLLABORATE AND LEND THEIR INTELLECTUAL CAPITAL TO PHILANTHROPIC CHALLANGES THAT WILL CONTRIBUTE TO THE GROWTH AND REVITALIZATION OF THE GREATER DETROIT REGION

Income
$227,530
Spending
$367,494
Spent on programs
66%
Reserves
2.8 months of spending
Largest source of income
fees for its services, 87%
Employees
3
Volunteers
3
Highest pay
$91,000, executive director and c.o.o.

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Financial health

Weak: 30 out of 100. Higher than 9% of charities in its peer group (community improvement, under $250k).

  • Reserves

    10 of 35

    Spendable reserves would cover 2.8 months of spending.

  • Debt

    20 of 20

    It owes 6% of what it owns.

  • Living within its means

    0 of 15

    Spending exceeded income by 62% of income.

  • Income trend

    0 of 15

    Income fell 28% on the year before.

  • Spending floor

    0 of 15

    66% of spending went to programs and raising each dollar of donations cost 105 cents.

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Governance

Good: 82 out of 100. Higher than 75% of charities in its peer group (community improvement, under $250k).

  • Independent board

    25 of 25

    11 of 11 voting board members are independent.

  • Conflict of interest policy

    15 of 15

    Has a written conflict of interest policy.

  • Whistleblower policy

    0 of 8

    Reports no written whistleblower policy.

  • Record keeping policy

    0 of 7

    Reports no 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.

  • No reported misuse

    10 of 10

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

Source: Form 990 for the year ending June 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 (1)
  1. $242,811 spent. A GROUP OF INDIVIDUALS WAS CHOSEN TO GO TO THE DETROIT AREA AND GET THE OPPORTUNITY TO EXPERIENCE THE CITY'S CULTURE, WORK IN THE REGION, AND HAVE THE ABILITY TO MAKE A DIFFERENCE IN THE COMMUNITY. 90 APPLICANTS CAME TO DETROIT FOR A RECRUITING EVENT, AND 22 OF THE INDIVIDUALS WERE SELECTED TO BE EMPLOYED BY COMPANIES WORKING WITH CHALLENGE DETROIT. THE CHOSEN CANDIDATES THEN WORK AT THEIR JOBS FOR ONE YEAR AND, ON FRIDAYS, COMPETE IN VARIOUS CHALLENGES SET UP BY THE ORGANIZATION, INCLUDING VOLUNTEER OPPORTUNITIES IN THE CITY OF DETROIT.

Source: Form 990 for the year ending June 30, 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 October 13, 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 June 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 2012.

    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 October 21, 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.