Heart Of Texas Electric Cooperative Inc
Heart Of Texas Electric Cooperative consistently operates near break-even with no reported officer compensation.
EIN: 205724955 · Mcgregor, TX · NTEE: Y22 · Updated: 2026-03-28
Is Heart Of Texas Electric Cooperative Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Heart Of Texas Electric Cooperative Inc directs 95% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Heart Of Texas Electric Cooperative Inc
Heart Of Texas Electric Cooperative Inc (EIN: 205724955) is a nonprofit organization based in Mcgregor, TX, classified under NTEE code Y22. The organization reported total revenue of $71.6M and total assets of $118.5M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Heart Of Texas Electric Cooperative Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Heart Of Texas Electric Cooperative Inc is a major nonprofit that has been operating for 17 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of 4.5%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $73.4M |
| Total Expenses | $73.8M |
| Surplus / Deficit | $-373,976 |
| Total Assets | $116.4M |
| Total Liabilities | $37.2M |
| Net Assets | $79.2M |
| Operating Margin | -0.5% |
| Debt-to-Asset Ratio | 32.0% |
| Months of Reserves | 18.9 months |
Financial Health Grade: B
In 2023, Heart Of Texas Electric Cooperative Inc reported a deficit of $374K with expenses exceeding revenue, holds 18.9 months of operating reserves (strong position), has a debt-to-asset ratio of 32.0% (moderate leverage).
Financial Trends
Over 13 years of filings (2011–2023), Heart Of Texas Electric Cooperative Inc's revenue has grown at a compound annual growth rate (CAGR) of 4.5%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +91.9% | +92.4% | -2.5% |
| 2022 | -24.2% | -24.3% | +9.8% |
| 2021 | +9.0% | +9.0% | +6.9% |
| 2020 | +1.3% | +1.4% | +2.4% |
| 2019 | +1.4% | +1.6% | +0.9% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 4000 |
| IRS Ruling Date | 2009 |
Classification data from ProPublica Nonprofit Explorer. Additional BMF data may be available after enrichment.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Heart Of Texas Electric Cooperative Inc with a Mission Score of 85 out of 100 (Excellent). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 5%
- programs: 95%
- fundraising: 0%
According to IRS 990 filings, Heart Of Texas Electric Cooperative Inc allocates its expenses as follows: admin: 5%, programs: 95%, fundraising: 0%. With 95% directed toward programs, this reflects a strong commitment to its charitable mission.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $374K, with expenses exceeding revenue.
- Debt-to-asset ratio: 32.0%.
Executive Compensation Analysis
The organization consistently reports 0% officer compensation across all available filings, which is highly unusual for an organization of its size with over $70 million in revenue and $118 million in assets. This suggests that executive compensation may be reported under other expense categories or that the cooperative structure inherently minimizes traditional 'officer compensation' as defined by the 990, indicating a strong commitment to member-centric operations.
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 Heart Of Texas Electric Cooperative Inc's IRS 990 filings:
- Consistent 0% officer compensation for a large organization, requiring further clarification on executive pay structure.
Strengths
The following positive indicators were identified for Heart Of Texas Electric Cooperative Inc:
- Consistent operation near break-even, typical for a member-owned cooperative.
- Strong asset base, consistently growing over the past decade from $79 million in 2014 to $116 million in 2023.
- High program efficiency, as nearly all expenses are directly related to providing utility services.
Frequently Asked Questions about Heart Of Texas Electric Cooperative Inc
Is Heart Of Texas Electric Cooperative Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Heart Of Texas Electric Cooperative Inc (EIN: 205724955) some concerns. Mission Score: 85/100. 1 red flag identified, 3 strengths noted.
How does Heart Of Texas Electric Cooperative Inc spend its money?
Heart Of Texas Electric Cooperative Inc directs 95% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Heart Of Texas Electric Cooperative Inc tax-deductible?
Heart Of Texas Electric Cooperative Inc is registered as a tax-exempt nonprofit (EIN: 205724955). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Why is officer compensation consistently reported as 0%?
This is highly unusual for an organization of this size and suggests that executive compensation might be categorized differently within their financial reporting, or that the cooperative model truly minimizes traditional 'officer' salaries as defined by the IRS 990.
What caused the significant revenue increase from $38.2 million in 2022 to $73.3 million in 2023?
This nearly doubling of revenue in a single year warrants further investigation into factors such as changes in energy prices, increased service demand, or expansion of their service territory.
How does the cooperative manage its liabilities, which have fluctuated significantly?
Liabilities have ranged from $23.9 million in 2016 to $38.7 million in 2022. Understanding the nature of these liabilities (e.g., debt for infrastructure, operational payables) is crucial for assessing long-term financial stability.
Filing History
IRS 990 filing history for Heart Of Texas Electric Cooperative Inc showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Heart Of Texas Electric Cooperative Inc's revenue has grown by 69.5%, moving from $43.3M to $73.4M. Total assets increased by 69.5% over the same period, from $68.7M to $116.4M. Total functional expenses rose by 90.7%, from $38.7M to $73.8M. In its most recent filing year (2023), Heart Of Texas Electric Cooperative Inc reported a deficit of $374K, with expenses exceeding revenue. The organization holds $37.2M in liabilities against $116.4M in assets (debt-to-asset ratio: 32.0%), resulting in net assets of $79.2M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $73.4M | $73.8M | $116.4M | $37.2M | — | — |
| 2022 | $38.2M | $38.3M | $119.4M | $38.8M | — | View 990 |
| 2021 | $50.5M | $50.6M | $108.8M | $27.5M | — | View 990 |
| 2020 | $46.3M | $46.4M | $101.7M | $24.4M | — | View 990 |
| 2019 | $45.7M | $45.8M | $99.4M | $26.5M | — | — |
| 2018 | $45.1M | $45.1M | $98.5M | $29.6M | — | View 990 |
| 2017 | $42.1M | $42.1M | $92.9M | $27.8M | — | View 990 |
| 2016 | $36.7M | $36.6M | $84.7M | $24.0M | — | View 990 |
| 2015 | $40.4M | $39.7M | $82.9M | $27.1M | — | View 990 |
| 2014 | $45.7M | $46.0M | $79.0M | $27.7M | — | View 990 |
| 2013 | $38.9M | $38.7M | $75.2M | $28.4M | — | View 990 |
| 2012 | $36.8M | $36.8M | $69.9M | $26.9M | — | View 990 |
| 2011 | $43.3M | $38.7M | $68.7M | $29.6M | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $73.4M, expenses of $73.8M, and assets of $116.4M (revenue +91.9% year-over-year).
- 2022: Revenue of $38.2M, expenses of $38.3M, and assets of $119.4M (revenue -24.2% year-over-year).
- 2021: Revenue of $50.5M, expenses of $50.6M, and assets of $108.8M (revenue +9.0% year-over-year).
- 2020: Revenue of $46.3M, expenses of $46.4M, and assets of $101.7M (revenue +1.3% year-over-year).
- 2019: Revenue of $45.7M, expenses of $45.8M, and assets of $99.4M (revenue +1.4% year-over-year).
- 2018: Revenue of $45.1M, expenses of $45.1M, and assets of $98.5M (revenue +7.1% year-over-year).
- 2017: Revenue of $42.1M, expenses of $42.1M, and assets of $92.9M (revenue +14.9% year-over-year).
- 2016: Revenue of $36.7M, expenses of $36.6M, and assets of $84.7M (revenue -9.3% year-over-year).
- 2015: Revenue of $40.4M, expenses of $39.7M, and assets of $82.9M (revenue -11.6% year-over-year).
- 2014: Revenue of $45.7M, expenses of $46.0M, and assets of $79.0M (revenue +17.5% year-over-year).
- 2013: Revenue of $38.9M, expenses of $38.7M, and assets of $75.2M (revenue +5.8% year-over-year).
- 2012: Revenue of $36.8M, expenses of $36.8M, and assets of $69.9M (revenue -15.0% year-over-year).
- 2011: Revenue of $43.3M, expenses of $38.7M, and assets of $68.7M.
Data Sources and Methodology
This transparency report for Heart Of Texas Electric Cooperative 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.