Highlands Foundation Inc
Highlands Foundation Inc. faces significant financial deficits with expenses vastly exceeding revenue in recent years, leading to a substantial decline in assets.
EIN: 203941123 · Madison, WI · NTEE: T21 · Updated: 2026-03-28
| Metric | Value |
|---|---|
| Total Revenue | $1.4M |
| Total Expenses | $10.5M |
| Program Spending | 80% |
| Net Assets | $6.1M |
| Transparency Score | 45/100 |
Is Highlands Foundation Inc Legit?
Significant Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Highlands Foundation Inc directs 80% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Highlands Foundation Inc
Highlands Foundation Inc (EIN: 203941123) is a nonprofit organization based in Madison, WI, classified under NTEE code T21. The organization reported total revenue of $1.4M and total assets of $5.7M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Highlands Foundation Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Highlands Foundation Inc is a mid-size nonprofit that has been operating for 20 years, with 10 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of 5.0%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $361K |
| Total Expenses | $10.5M |
| Surplus / Deficit | $-10,102,463 |
| Total Assets | $6.1M |
| Total Liabilities | $1 |
| Net Assets | $6.1M |
| Operating Margin | -2800.1% |
| Debt-to-Asset Ratio | 0.0% |
| Months of Reserves | 7.0 months |
Financial Health Grade: B
In 2023, Highlands Foundation Inc reported a deficit of $10.1M with expenses exceeding revenue, holds 7.0 months of operating reserves (strong position), has a debt-to-asset ratio of 0.0% (very low leverage).
Financial Trends
Over 10 years of filings (2011–2023), Highlands Foundation Inc's revenue has grown at a compound annual growth rate (CAGR) of 5.0%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +112.5% | +1160.7% | -62.4% |
| 2022 | -84.4% | -88.3% | -3.9% |
| 2021 | -31.6% | +410.6% | -26.4% |
| 2020 | +23.3% | +102.0% | +0.9% |
| 2019 | +419.1% | +96.3% | +404.1% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 2006 |
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 Highlands Foundation 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: 15%
- programs: 80%
- fundraising: 5%
According to IRS 990 filings, Highlands Foundation Inc allocates its expenses as follows: admin: 15%, programs: 80%, fundraising: 5%. With 80% 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 $10.1M, with expenses exceeding revenue.
- Debt-to-asset ratio: 0.0%.
Executive Compensation Analysis
No officer compensation has been reported across all available filings, suggesting either a volunteer-led executive team or that compensation is categorized differently, which limits transparency regarding leadership costs relative to the organization's size and fluctuating financial health.
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 Highlands Foundation Inc's IRS 990 filings:
- Significant and consistent operational deficits in recent years (e.g., $10.1M deficit in 2023, $6M deficit in 2021).
- Dramatic decline in assets from over $22M in 2020 to $6M in 2023, likely due to covering deficits.
- Unusual consistent reporting of $1 in liabilities across multiple recent filings.
- Lack of reported officer compensation, which can obscure leadership costs and transparency.
Strengths
The following positive indicators were identified for Highlands Foundation Inc:
- Historically maintained substantial asset base, though currently declining.
- No reported officer compensation, potentially indicating a volunteer-driven leadership structure.
Frequently Asked Questions about Highlands Foundation Inc
Is Highlands Foundation Inc a legitimate charity?
Highlands Foundation Inc (EIN: 203941123) is a registered tax-exempt nonprofit based in Wisconsin. Our AI analysis gives it a Mission Score of 45/100. It has 10 years of IRS 990 filings on record. Total revenue: $1.4M. 4 red flags identified. 2 strengths noted. Financial health grade: B.
How does Highlands Foundation Inc spend its money?
Highlands Foundation Inc directs 80% of its spending to programs and services. Fundraising costs 5%. This exceeds the 65% industry benchmark.
Are donations to Highlands Foundation Inc tax-deductible?
Highlands Foundation Inc is registered as a tax-exempt nonprofit (EIN: 203941123). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
What percentage of Highlands Foundation Inc's spending goes to programs?
Highlands Foundation Inc directs 80% to programs, 5% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
How does Highlands Foundation Inc compare to similar nonprofits?
With a transparency score of 45/100 (Fair), Highlands Foundation Inc is near average for NTEE category T21 nonprofits. The score reflects financial transparency, program spending efficiency, and governance quality based on IRS 990 data.
Where is Highlands Foundation Inc located?
Highlands Foundation Inc is headquartered in Madison, Wisconsin and files with the IRS under EIN 203941123. It is classified under NTEE code T21.
How many years of IRS 990 filings does Highlands Foundation Inc have?
Highlands Foundation Inc has 10 years of IRS 990 filings on record at NonprofitSpending. This extensive filing history provides a strong basis for evaluating long-term financial trends. The most recent filing shows $1.4M in total revenue.
Is Highlands Foundation Inc. financially stable?
Based on the data, the organization is not financially stable. In 2023, expenses were $10,463,248 while revenue was only $360,785, indicating a significant operational deficit. Similar large deficits were observed in 2022 and 2021.
Why have the organization's assets decreased so dramatically?
Assets decreased from a peak of $22,830,739 in 2020 to $6,075,218 in 2023. This decline likely stems from the organization using its reserves to cover the large operational deficits experienced in recent years, where expenses far outstripped revenue.
What is the reason for the consistent $1 liability reported in recent years?
The consistent reporting of $1 in liabilities across multiple recent filings (2023, 2022, 2021, 2020, 2019) is unusual and could indicate a specific accounting practice for nominal liabilities or warrants further investigation into the organization's balance sheet reporting.
How does Highlands Foundation Inc. fund its operations given the large deficits?
The large deficits suggest that the organization is either drawing heavily from its asset reserves, receiving significant unreported non-cash contributions, or has other funding sources not immediately apparent in the summarized revenue figures, which is unsustainable long-term.
Filing History
IRS 990 filing history for Highlands Foundation Inc showing financial trends over 10 years of public records:
Over 10 years of IRS 990 filings (2011–2023), Highlands Foundation Inc's revenue has grown by 80.2%, moving from $200K to $361K. Total assets increased by 45% over the same period, from $4.2M to $6.1M. Total functional expenses rose by 4227.5%, from $242K to $10.5M. In its most recent filing year (2023), Highlands Foundation Inc reported a deficit of $10.1M, with expenses exceeding revenue. The organization holds $1 in liabilities against $6.1M in assets (debt-to-asset ratio: 0.0%), resulting in net assets of $6.1M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $361K | $10.5M | $6.1M | $1 | — | View 990 |
| 2022 | $170K | $830K | $16.2M | $1 | — | View 990 |
| 2021 | $1.1M | $7.1M | $16.8M | $1 | — | View 990 |
| 2020 | $1.6M | $1.4M | $22.8M | $1 | — | View 990 |
| 2019 | $1.3M | $686K | $22.6M | $1 | — | — |
| 2015 | $249K | $349K | $4.5M | $0 | — | View 990 |
| 2014 | $388K | $364K | $4.6M | $0 | — | View 990 |
| 2013 | $468K | $295K | $4.6M | $0 | — | View 990 |
| 2012 | $392K | $195K | $4.4M | $0 | — | View 990 |
| 2011 | $200K | $242K | $4.2M | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $361K, expenses of $10.5M, and assets of $6.1M (revenue +112.5% year-over-year).
- 2022: Revenue of $170K, expenses of $830K, and assets of $16.2M (revenue -84.4% year-over-year).
- 2021: Revenue of $1.1M, expenses of $7.1M, and assets of $16.8M (revenue -31.6% year-over-year).
- 2020: Revenue of $1.6M, expenses of $1.4M, and assets of $22.8M (revenue +23.3% year-over-year).
- 2019: Revenue of $1.3M, expenses of $686K, and assets of $22.6M (revenue +419.1% year-over-year).
- 2015: Revenue of $249K, expenses of $349K, and assets of $4.5M (revenue -35.8% year-over-year).
- 2014: Revenue of $388K, expenses of $364K, and assets of $4.6M (revenue -17.2% year-over-year).
- 2013: Revenue of $468K, expenses of $295K, and assets of $4.6M (revenue +19.6% year-over-year).
- 2012: Revenue of $392K, expenses of $195K, and assets of $4.4M (revenue +95.7% year-over-year).
- 2011: Revenue of $200K, expenses of $242K, and assets of $4.2M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Highlands Foundation Inc:
Data Sources and Methodology
This transparency report for Highlands Foundation 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.