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Grace Sober Living

EIN 85-3680658 · Phoenix, AZ

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

LegitimacyPassesRegistration and standingFinancial healthWeak35 out of 100GovernanceGood70 out of 100Impact evidenceDescribes programsHow well its results are evidenced

Points to look into

  • Only 50% of its spending went to programs.

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

What it says it does

Our mission is to transform lives by providing Christ-centered recovery care and housing to people overcoming alcoholism and addiction. Our work helps decrease the relapse rate of people in recovery and supports them to reach their optimal wellness.

Income
$2.1 million
Spending
$1.5 million
Spent on programs
50%
Reserves
-15.8 months of spending
Largest source of income
donations and private grants, 84%
Employees
3
Volunteers
6
Highest pay
$100,667, executive director

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. Higher than 8% of charities in its peer group (mental health, $1m to $10m).

  • Reserves

    0 of 35

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

  • Debt

    5 of 20

    It owes 61% of what it owns.

  • Living within its means

    15 of 15

    Income exceeded spending by 27% of income.

  • Income trend

    15 of 15

    Income rose 49% on the year before.

  • Spending floor

    0 of 15

    50% of spending went to programs and raising each dollar of donations cost 30 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

Good: 70 out of 100. Higher than 23% of charities in its peer group (mental health, $1m to $10m).

  • Independent board

    25 of 25

    6 of 6 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.

  • Independent check of accounts

    0 of 15

    Its accounts were not audited or reviewed 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

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)
  1. $765,278 spent. In 2024, Grace Sober Living continued to operate seven sober living homes in Phoenix and Scottsdale. Home 1 in Phoenix, is licensed to hold 7 male residents and 1 male house manager (non-licensed). Home 2 in Scottsdale is licensed to hold 10 male residents and 1 male house manager (non-licensed). Home 3 in Phoenix is licensed to hold 10 female residents and 1 female house manager (non-licensed). Home 4 is licensed to hold 3 male residents and 1 male house manager (non-licensed). Home 5 in Phoenix is licensed to hold 4 male residents and 1 male house manager (non-licensed). Home 6 in Phoenix is licensed to hold 14 male residents and 1 male house manager (non-licensed). Home 7 in Phoenix, is licensed to hold 14 male residents and 1 male house manager (non-licensed). Grace Sober Living is licensed to serve 62 residents across our organization. (Continued at Schedule O, Note 07.)
  2. Continued from Part III, line 4a: In 2024, Grace Sober Living worked with the Steele Family Foundation Trust (Canadian Non-Profit) to start a program where our residents learn to earn. Grace Sober Living started a pilot program called WISE. The pilot program currently has 3 residents who after going through an application process committed to the 18-month program. During the 18 months the 3 Grace Sober Living residents attend class on Tuesdays and Thursdays from 6pm - 8pm where they learn about spiritual leadership, soft business skills, and prepare the participants to attend college. Once the three participants complete the 18-month program they qualify to have their college education paid for. This is a great program where these participants can further their education as they continue their path in recovery. In addition, in 2024 we continued to serve the greater Phoenix area by providing a safe, Christ-centered sober living homes through our Transformation Happens Now program. In addition, Grace Sober Living is unique in that we provide full-time live-in-house managers to help our residents navigate re-entry into society. Finally, during 2024 Grace Sober Living updated our program to ensure we are consistent across all homes. This is important as Grace Sober Living purchased 4 additional houses at the end of 2023 (Homes 4-7). In short, 2024 was a great year for Grace Sober Living and we continue to serve the recovery community in Phoenix/Scottsdale through our Christ-centered 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 September 7, 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 September 30, 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 September 10, 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 September 7, 2026.

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

    Recognized by the IRS since January 2022.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated September 7, 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 7, 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.