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Passes our checks

Mental Health Client Action Network

EIN 93-1177400 · Santa Cruz, CA

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

LegitimacyPassesRegistration and standingFinancial healthWeak20 out of 100GovernanceStrong91 out of 100Impact evidenceDescribes programsHow well its results are evidenced

What it says it does

MHCAN IS A CLIENT-RUN ORGANIZATION DESIGNED TO PROVIDE MUTUAL SUPPORT AND NETWORKING, HAVE A VOICE IN ALL MATTERS WHICH AFFECT THEM AND TO CREATE PROGRAMS CONTROLLED BY CLIENTS. THEY ADVOCATE FOR THE RIGHT TO CHOOSE THEIR OWN LIFE PATHS AND EDUCATE THE PUBLIC FROM THEIR OWN PERSPECTIVES.

Income
$550,217
Spending
$830,484
Spent on programs
69%
Reserves
-6.9 months of spending
Largest source of income
donations and private grants, 100%
Employees
28
Volunteers
22

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: 20 out of 100. Higher than 2% of charities in its peer group (mental health, $250k to $1m).

  • Reserves

    0 of 35

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

  • Debt

    5 of 20

    It owes 60% of what it owns.

  • Living within its means

    0 of 15

    Spending exceeded income by 51% of income.

  • Income trend

    0 of 15

    Income fell 35% on the year before.

  • Spending floor

    15 of 15

    69% of spending went to programs and raising each dollar of donations cost 2 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

Strong: 91 out of 100. Higher than 79% of charities in its peer group (mental health, $250k to $1m).

  • Independent board

    25 of 25

    6 of 5 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

    6 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 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. $574,607 spent. MHCAN provides a drop-in peer support center for people in Santa Cruz County with mental health diagnoses. They operated 52 weeks, 4 days per week, including holidays. MHCAN is limited to 50 participants per day by the city. On the vast majority of days, we had 50 people and had to turn even more people away. Most people would come in the morning and stay the entire 6 hours we were open. MHCAN provided individual support, support groups, a computer room, food, showers, and laundry facilities. MHCAN served as a distribution center for the local food bank. We also provided transportation to and from the center for people living in mental health facilities. 75% of those we served between 2022 and 2025 were unhoused. The organization is staffed by people who themselves have psychiatric diagnoses, and in that way it provides work experience to individuals who might struggle to identify employment opportunities due to their symptoms.

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 November 6, 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 January 1996.

    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.