Passes our checks

Hugs Cafe Inc

EIN 46-2332714 · Mckinney, TX

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

What it says it does

THE MISSION OF HUGS CAFE INC IS TO ENHANCE THE LIVES OF ADULTS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES THROUGH TRAINING AND EMPLOYMENT.

Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Strong: 93 out of 100.

Reserves
35 of 35
Spendable reserves would cover 13.8 months of spending.
Debt
20 of 20
It owes 6% of what it owns.
Living within its means
15 of 15
Income exceeded spending by 45% of income.
Income trend
15 of 15
Income rose 86% on the year before.
Spending floor
8 of 15
58% of spending went to programs and raising each dollar of donations cost 2 cents.

Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Strong: 100 out of 100.

Independent board
25 of 25
14 of 14 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.
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, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

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

Programs described in its return (4)

$588,155 spent. HUGS CAFE INC. IS COMPOSED OF FOUR PROGRAMS. HUGS CAFE IS OUR FLAGSHIP PROGRAM WHERE WE DIRECTLY EMPLOY 23 ADULTS WITH SPECIAL NEEDS IN A CAFE SETTING. TO PROVIDE AN INTRODUCTORY AND SOCIAL WAY TO INTERACT IN THE KITCHEN, WE OFFER COOKING CLASSES VIA OUR HUGS HOME COOKING PROGRAM.
$313,624 spent. HUGS GREENHOUSE IS OUR THIRD PROGRAM THAT RECOGNIZES FOOD SERVICE MAY NOT BE FOR EVERY PERSON OR EVERY ABILITY. WE HAVE DEVELOPED A SECOND SOCIAL ENTERPRISE THAT TRAINS AND EDUCATES ADULTS WITH SPECIAL NEEDS ON GARDENING, RETAIL SALES, AND SOCIALIZATION WITHIN THE COMMUNITY.
$157,106 spent. OUR FINAL ADDITION TO THE HUGS CAFE INC FAMILY OF PROGRAMS IS HUGS TRAINING ACADEMY. THIS 12 WEEK VOCATIONAL TRAINING PROGRAM SUPPORTS ADULTS WITH DISABILITIES AS THEY LEARN THE BASIC SKILLS TO ENTER THE WORKFORCE WITH AN EMPLOYMENT PARTNER IN THE CULINARY OR HOSPITALITY INDUSTRIES. ALL OF OUR PROGRAMS OFFER TRAINING AND EDUCATIONAL EMPLOYMENT TO ADULTS WITH SPECIAL NEEDS SO THEY MAY GAIN RESEPCT AND INDEPENDENCE.
$56,589 spent. HUGS CAFE, INC. ALSO SHARES THEIR TOOLS AND EXPERIENCE WITH OTHERS IN THE IDD VOCATIONAL INDUSTRY AND THESE ORGANIZATIONS ARE KNOWN AS HUGS CAFE, INC. AFFILIATES.

Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

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 October 13, 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 December 2024.
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 July 2014.
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 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.