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Passes our checks

The Arc of Texas

EIN 74-6076222 · Sugar Land, TX

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

LegitimacyPassesRegistration and standingFinancial healthWeak35 out of 100GovernanceStrong97 out of 100Impact evidenceDescribes programsHow well its results are evidenced

What it says it does

THE ARC ENSURES OPPORTUNITIES FOR PEOPLE WITH INTELLECTUAL AND RELATED DEVELOPMENTAL DISABILITIES TO MAXIMIZE THEIR QUALITY OF LIFE WITHIN OUR COMMUNITY.

Income
$986,330
Spending
$1.1 million
Spent on programs
65%
Reserves
-4.1 months of spending
Largest source of income
fees for its services, 54%
Employees
7
Volunteers
300
Highest pay
$95,910, ceo

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

Financial health

Weak: 35 out of 100.

  • Reserves

    0 of 35

    Spendable reserves are negative: it owes or has committed more than it holds.

  • Debt

    16 of 20

    It owes 20% of what it owns.

  • Living within its means

    4 of 15

    Spending exceeded income by 14% of income.

  • Income trend

    0 of 15

    Income fell 60% on the year before.

  • Spending floor

    15 of 15

    65% of spending went to programs and raising each dollar of donations cost 10 cents.

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

Governance

Strong: 97 out of 100.

  • Independent board

    25 of 25

    9 of 9 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

    12 of 15

    Its accounts were reviewed or compiled by an independent accountant, but not audited.

  • 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

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 (3)
  1. $130,514 spent. ADVOCACY:THE ARC ADVOCATES FOR THE INCLUSION OF PEOPLE WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES INTO ALL PARTS OF THE COMMUNITY - FROM CLASSROOMS TO THE WORKPLACE. WE ADVOCATE FOR CHILDREN TO RECEIVE THE SERVICES AND SUPPORTS NECESSARY FOR THEM TO BENEFIT FROM INSTRUCTION. IN ADDITION, WE CONDUCT MONTHLY PARENT SUPPORT GROUP MEETINGS. THE ARC PARTICIPATES IN LEGISLATIVE ADVOCACY BY MEETING WITH LOCAL AND STATE ELECTED OFFICIALS TO PROMOTE PROGRAMS AND FUNDING THAT SUPPORT PEOPLE WITH DISABILITIES.
  2. $387,564 spent. FACILITIES/RESIDENTIAL AND COMMERCIAL:THE ARC OWNS FIFTEEN (15) RESIDENTIAL PROPERTIES, FOURTEEN (14) OF WHICH ARE LEASED AT BELOW MARKET RATES TO LICENSED PROVIDERS TO OPERATE AS GROUP HOMES FOR INDIVIDUALS WITH INTELLECTUAL/DEVELOPMENTAL DISABILITIES. THE ARC OWNS THREE (3) COMMERCIAL PROPERTIES, ONE (1) OF WHICH SERVES AS OUR OFFICE. ANOTHER IS LEASED AT BELOW MARKET RATES TO A LICENSED PROVIDER TO OPERATE AS A LEARNING CENTER FOR INDIVIDUALS WITH INTELLECTUAL/DEVELOPMENTAL DISABILITIES. THE THIRD IS LEASED AT MARKET RATE TO A COMPOUNDING PHARMACY. IN 2024, THE ARC SPENT OVER $230,000 MAINTAINING ALL OF THESE PROPERTIES SO THAT OUR CLIENTS COULD LIVE AND WORK IN SAFE, ATTRACTIVE HOMES AND A LEARNING CENTER IN THRIVING NEIGHBORHOODS.
  3. $217,301 spent. RECREATION:ALONG WITH OUR ADVOCACY WORK, WE PROVIDE RECREATIONAL AND SOCIAL ACTIVITIES EACH MONTH FOR OUR ADULT AND TEEN/TWEEN CLIENTS. APPROXIMATELY 80 CLIENTS ATTEND PROFESSIONAL SPORTING EVENTS, DANCES, DISNEY ON ICE, FESTIVALS, COUNTY FAIR, RODEO, MOVIES IN THE COUNTY AND SURROUNDING AREA EACH YEAR. APPROXIBATELY 40-50 OF THOSE CLIENTS ALSO PARTICIPATE IN WEEKLY BOWLING. THE ARC SPONSORS THE LARGEST SPECIAL OLYMPICS PROGRAM IN THE AREA - OFFERING 9 SPORTS (LOCAL, AREA, REGIONAL, STATE) THROUGHOUT THE YEAR AND SERVING OVER 100 ADULT ATHLETES. ATHLETES AND BOWLERS ARE AWARDED, AND 100 VOLUNTEERS ARE RECOGNIZED AT AN ANNUAL SPORTS BANQUET EACH YEAR.PARENTS OF YOUTH/TEEN/TWEENS ARE SUPPLIED WITH INFORMATION AND TICKETS TO "DISABILITY FRIENDLY" FAMILY EVENTS TO ATTEND IN THE GREATER HOUSTON AREA. PARENTS OF YOUTH AGED 12 - 18 YRS ENJOY (3) THREE HOURS A MONTH OF RESPITE AS THEIR CHILDREN PARTICIPATE IN A SUPERVISED RECRATIONAL PROGRAM.

Source: Form 990 for the year ending December 31, 2024, 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? Worth knowing.

    Not individually listed by the IRS as eligible, which is usual for local chapters covered by a parent organization's exemption. The master file records contributions to it as deductible.

    Source: Exempt Organizations Business Master File, 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 2024.

    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 July 1966.

    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.