Connecticut Challenge Inc

Connecticut Challenge Inc. faces persistent operational deficits and declining financial health.

EIN: 202777748 · Southport, CT · NTEE: H123 · Updated: 2026-03-28

$613KRevenue

$317KAssets

45/100Mission Score (Fair)

H123

About Connecticut Challenge Inc

Connecticut Challenge Inc (EIN: 202777748) is a nonprofit organization based in Southport, CT, classified under NTEE code H123. The organization reported total revenue of $613K and total assets of $317K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Connecticut Challenge Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.

AI Transparency Report

Connecticut Challenge Inc. exhibits concerning financial trends, particularly a consistent pattern of expenses exceeding revenue in recent years. For instance, in 2022, expenses were $796,022 against revenues of $542,811, and in 2021, expenses were $604,912 compared to $547,286 in revenue. This indicates an operational deficit that is not sustainable long-term. The organization also reported negative revenue in 2020 ($-495,202), which is highly unusual and warrants further investigation into its financial reporting practices. While executive compensation is reported as 0%, which is positive for transparency, the overall financial health appears precarious given the declining assets and increasing liabilities in some periods, such as liabilities jumping from $233,431 in 2021 to $1,354,096 in 2022.

Mission Effectiveness Score

NonprofitSpending's AI analysis rates Connecticut Challenge Inc with a Mission Score of 45 out of 100 (Fair). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.

Spending Breakdown

admin: 20%
programs: 70%
fundraising: 10%

According to IRS 990 filings, Connecticut Challenge Inc allocates its expenses as follows: admin: 20%, programs: 70%, fundraising: 10%. Approximately 70% goes to programs, indicating moderate mission focus.

Executive Compensation Analysis

Executive compensation is reported as 0% across all available filings, indicating that no officers received compensation, which is a positive sign for resource allocation directly to the mission.

Executive compensation data is sourced from IRS 990 filings, which require nonprofits to disclose the compensation of officers, directors, trustees, and key employees. NonprofitSpending analyzes this data relative to the organization's total revenue and sector benchmarks to assess whether executive pay is reasonable.

Red Flags

The following concerns were identified during AI analysis of Connecticut Challenge Inc's IRS 990 filings:

Consistent operational deficits (expenses exceeding revenue in recent years)
Negative revenue reported in 2020 ($-495,202)
Significant increase in liabilities from $233,431 in 2021 to $1,354,096 in 2022
Declining asset base over the past decade, from $2.7M in 2013 to $384K in 2022
High liabilities relative to assets in recent years, indicating potential insolvency risk

Strengths

The following positive indicators were identified for Connecticut Challenge Inc:

No officer compensation reported, indicating resources are not diverted to executive salaries.
Long filing history (13 filings) provides extensive data for analysis.

Frequently Asked Questions about Connecticut Challenge Inc

Why did Connecticut Challenge Inc. report negative revenue in 2020?

The 2020 filing shows a revenue of $-495,202, which is highly unusual and could indicate significant financial adjustments, write-offs, or a reporting error that needs clarification.

What caused the significant increase in liabilities from $233,431 in 2021 to $1,354,096 in 2022?

This dramatic increase in liabilities suggests a major financial event or debt accumulation that could severely impact the organization's solvency and warrants immediate scrutiny.

How does Connecticut Challenge Inc. plan to address its consistent operational deficits?

With expenses frequently exceeding revenue, as seen in 2022 ($796,022 expenses vs. $542,811 revenue) and 2021 ($604,912 expenses vs. $547,286 revenue), the organization needs a clear strategy to achieve financial sustainability.

What is the long-term strategy for asset management given the fluctuating and generally declining asset base?

Assets have declined significantly from a peak of $2,798,572 in 2013 to $384,991 in 2022, indicating a depletion of reserves that could hinder future operations.

Filing History

IRS 990 filing history for Connecticut Challenge Inc showing financial trends over 13 years of public records:

Over 13 years of IRS 990 filings (2010–2022), Connecticut Challenge Inc's revenue has declined by 63%, moving from $1.5M to $543K. Total assets decreased by 59.5% over the same period, from $951K to $385K. Total functional expenses fell by 16.4%, from $952K to $796K. In its most recent filing year (2022), Connecticut Challenge Inc reported a deficit of $253K, with expenses exceeding revenue. The organization holds $1.4M in liabilities against $385K in assets (debt-to-asset ratio: 351.7%), resulting in net assets of $-969,105.

Year	Revenue	Expenses	Assets	Liabilities	Officer Comp.	PDF
2022	$543K	$796K	$385K	$1.4M	—	View 990
2021	$547K	$605K	$233K	$882K	—	View 990
2020	$-495,202	$813K	$420K	$-93,440	—	View 990
2019	$1.4M	$1.6M	$1.8M	$654K	—	View 990
2018	$1.7M	$1.8M	$2.1M	$701K	—	View 990
2017	$2.0M	$2.2M	$2.1M	$625K	—	View 990
2016	$1.9M	$2.3M	$2.6M	$373K	—	View 990
2015	$2.6M	$2.6M	$2.7M	$516K	—	View 990
2014	$2.2M	$2.2M	$2.7M	$571K	—	View 990
2013	$2.1M	$2.0M	$2.8M	$688K	—	View 990
2012	$2.0M	$1.5M	$2.7M	$701K	—	View 990
2011	$1.9M	$1.4M	$1.7M	$229K	—	View 990
2010	$1.5M	$952K	$951K	$135K	—	View 990

Year-by-Year Financial Summary

2022: Revenue of $543K, expenses of $796K, and assets of $385K (revenue -0.8% year-over-year).
2021: Revenue of $547K, expenses of $605K, and assets of $233K.
2020: Revenue of $-495,202, expenses of $813K, and assets of $420K (revenue -135.6% year-over-year).
2019: Revenue of $1.4M, expenses of $1.6M, and assets of $1.8M (revenue -17.8% year-over-year).
2018: Revenue of $1.7M, expenses of $1.8M, and assets of $2.1M (revenue -15.2% year-over-year).
2017: Revenue of $2.0M, expenses of $2.2M, and assets of $2.1M (revenue +2.6% year-over-year).
2016: Revenue of $1.9M, expenses of $2.3M, and assets of $2.6M (revenue -26.4% year-over-year).
2015: Revenue of $2.6M, expenses of $2.6M, and assets of $2.7M (revenue +20.3% year-over-year).
2014: Revenue of $2.2M, expenses of $2.2M, and assets of $2.7M (revenue +2.4% year-over-year).
2013: Revenue of $2.1M, expenses of $2.0M, and assets of $2.8M (revenue +9.4% year-over-year).
2012: Revenue of $2.0M, expenses of $1.5M, and assets of $2.7M (revenue +1.0% year-over-year).
2011: Revenue of $1.9M, expenses of $1.4M, and assets of $1.7M (revenue +32.3% year-over-year).
2010: Revenue of $1.5M, expenses of $952K, and assets of $951K.

Data Sources and Methodology

This transparency report for Connecticut Challenge Inc is generated by NonprofitSpending's AI analysis engine. The data is sourced from publicly available IRS 990 filings accessed through the ProPublica Nonprofit Explorer API and IRS electronic filing records. The Mission Score, spending breakdown, and other analytical insights are produced by artificial intelligence and should be used as one of multiple factors when evaluating a nonprofit organization.

IRS 990 forms are annual information returns that most tax-exempt organizations must file with the IRS. These forms provide detailed financial information including revenue, expenses, assets, liabilities, and compensation of officers. NonprofitSpending processes this data to provide accessible transparency reports for donors, researchers, and the general public.

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.