Next Step Recovery Incorporated
Next Step Recovery Incorporated faces persistent deficit spending and high liabilities relative to assets.
EIN: 204570082 · Asheville, NC · NTEE: I31 · Updated: 2026-03-28
Is Next Step Recovery Incorporated Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Next Step Recovery Incorporated directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Next Step Recovery Incorporated
Next Step Recovery Incorporated (EIN: 204570082) is a nonprofit organization based in Asheville, NC, classified under NTEE code I31. The organization reported total revenue of $658K and total assets of $62K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Next Step Recovery Incorporated's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Next Step Recovery Incorporated is a small nonprofit that has been operating for 20 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -1.5%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $680K |
| Total Expenses | $746K |
| Surplus / Deficit | $-66,381 |
| Total Assets | $22K |
| Total Liabilities | $413K |
| Net Assets | $-390,820 |
| Operating Margin | -9.8% |
| Debt-to-Asset Ratio | 1839.3% |
| Months of Reserves | 0.4 months |
Financial Health Grade: D
In 2023, Next Step Recovery Incorporated reported a deficit of $66K with expenses exceeding revenue, holds 0.4 months of operating reserves (limited), has a debt-to-asset ratio of 1839.3% (high leverage).
Financial Trends
Over 13 years of filings (2011–2023), Next Step Recovery Incorporated's revenue has declined at a compound annual growth rate (CAGR) of -1.5%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +3.1% | +3.3% | -75.2% |
| 2022 | +18.7% | +0.9% | +1.0% |
| 2021 | -25.3% | -1.7% | -27.2% |
| 2020 | +12.6% | -3.9% | +147.1% |
| 2019 | -8.0% | +9.9% | -24.0% |
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 Next Step Recovery Incorporated with a Mission Score of 60 out of 100 (Good). 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: 75%
- fundraising: 10%
According to IRS 990 filings, Next Step Recovery Incorporated allocates its expenses as follows: admin: 15%, programs: 75%, fundraising: 10%. With 75% 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 $66K, with expenses exceeding revenue.
- Debt-to-asset ratio: 1839.3%.
Executive Compensation Analysis
Next Step Recovery Incorporated consistently reports 0% officer compensation across all available filings, suggesting either a fully volunteer executive leadership or that compensation is structured in a way not reported as officer compensation on the 990, which is unusual for an organization of its size with annual revenues often exceeding $600,000.
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 Next Step Recovery Incorporated's IRS 990 filings:
- Persistent deficit spending (e.g., 2023 expenses $746,459 vs. revenue $680,078)
- High liabilities relative to assets (e.g., 2023 liabilities $413,290 vs. assets $22,470)
- Declining asset base (from $123,429 in 2020 to $22,470 in 2023)
- Consistent 0% officer compensation reported, which can sometimes mask other forms of compensation or indicate potential over-reliance on unpaid leadership for an organization of this size.
Strengths
The following positive indicators were identified for Next Step Recovery Incorporated:
- Consistent revenue generation (generally $550k-$770k annually)
- Long history of IRS 990 filings (13 filings), indicating transparency in reporting
- Focus on program delivery (implied by NTEE code I31 for substance abuse services)
Frequently Asked Questions about Next Step Recovery Incorporated
Is Next Step Recovery Incorporated a legitimate charity?
Based on AI analysis of IRS 990 filings, Next Step Recovery Incorporated (EIN: 204570082) some concerns. Mission Score: 60/100. 4 red flags identified, 3 strengths noted.
How does Next Step Recovery Incorporated spend its money?
Next Step Recovery Incorporated directs 75% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Next Step Recovery Incorporated tax-deductible?
Next Step Recovery Incorporated is registered as a tax-exempt nonprofit (EIN: 204570082). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is Next Step Recovery Incorporated financially stable?
The organization's financial stability is a concern, as it has frequently reported expenses exceeding revenue and has significantly higher liabilities than assets in recent years, such as $413,290 in liabilities against $22,470 in assets in 2023.
How does Next Step Recovery Incorporated fund its operations?
While specific funding sources are not detailed in the provided data, the organization consistently generates between $550,000 and $770,000 in annual revenue, which is then used to cover its operational expenses.
What is the trend in Next Step Recovery Incorporated's assets?
The organization's assets have fluctuated, showing a significant decline from $123,429 in 2020 to $22,470 in 2023, indicating a weakening asset base.
Why is officer compensation reported as 0%?
The consistent reporting of 0% officer compensation across all filings suggests that the organization's executive leadership may be entirely volunteer-based, or that any compensation provided is not categorized as officer compensation on the 990 form.
Is Next Step Recovery Incorporated growing?
Financially, the organization appears to be contracting rather than growing, with declining assets and persistent deficit spending in recent years, despite relatively stable revenue levels.
Filing History
IRS 990 filing history for Next Step Recovery Incorporated showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Next Step Recovery Incorporated's revenue has declined by 16.9%, moving from $818K to $680K. Total assets decreased by 77.8% over the same period, from $101K to $22K. Total functional expenses fell by 7.1%, from $803K to $746K. In its most recent filing year (2023), Next Step Recovery Incorporated reported a deficit of $66K, with expenses exceeding revenue. The organization holds $413K in liabilities against $22K in assets (debt-to-asset ratio: 1839.3%), resulting in net assets of $-390,820.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $680K | $746K | $22K | $413K | — | — |
| 2022 | $660K | $722K | $91K | $438K | — | — |
| 2021 | $556K | $716K | $90K | $375K | — | View 990 |
| 2020 | $744K | $729K | $123K | $262K | — | View 990 |
| 2019 | $661K | $758K | $50K | $204K | — | View 990 |
| 2018 | $719K | $690K | $66K | $122K | — | View 990 |
| 2017 | $686K | $611K | $57K | $141K | — | View 990 |
| 2016 | $618K | $614K | $41K | $177K | — | View 990 |
| 2015 | $770K | $776K | $65K | $189K | — | View 990 |
| 2014 | $660K | $714K | $91K | $209K | — | — |
| 2013 | $696K | $733K | $55K | $119K | — | View 990 |
| 2012 | $832K | $895K | $55K | $82K | — | View 990 |
| 2011 | $818K | $803K | $101K | $64K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $680K, expenses of $746K, and assets of $22K (revenue +3.1% year-over-year).
- 2022: Revenue of $660K, expenses of $722K, and assets of $91K (revenue +18.7% year-over-year).
- 2021: Revenue of $556K, expenses of $716K, and assets of $90K (revenue -25.3% year-over-year).
- 2020: Revenue of $744K, expenses of $729K, and assets of $123K (revenue +12.6% year-over-year).
- 2019: Revenue of $661K, expenses of $758K, and assets of $50K (revenue -8.0% year-over-year).
- 2018: Revenue of $719K, expenses of $690K, and assets of $66K (revenue +4.8% year-over-year).
- 2017: Revenue of $686K, expenses of $611K, and assets of $57K (revenue +10.9% year-over-year).
- 2016: Revenue of $618K, expenses of $614K, and assets of $41K (revenue -19.7% year-over-year).
- 2015: Revenue of $770K, expenses of $776K, and assets of $65K (revenue +16.7% year-over-year).
- 2014: Revenue of $660K, expenses of $714K, and assets of $91K (revenue -5.1% year-over-year).
- 2013: Revenue of $696K, expenses of $733K, and assets of $55K (revenue -16.4% year-over-year).
- 2012: Revenue of $832K, expenses of $895K, and assets of $55K (revenue +1.6% year-over-year).
- 2011: Revenue of $818K, expenses of $803K, and assets of $101K.
Data Sources and Methodology
This transparency report for Next Step Recovery Incorporated 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.