Sheepgate / Teen Challenge of the Midlands 
The information on this page was last updated 5/10/2026. If you see errors or omissions, please email: [email protected]
Summary
If you're struggling with addiction, anger, depression, or other painful issues, you can find hope and healing at Sheepgate - a successful, faith-based recovery program in the heartland. Our highly structured 12-month residential mentoring and Biblically-based teaching program is designed to give you a framework to rebuild your self-worth and overcome life-controlling issues.
Contact information
Mailing address:
Sheepgate
900 N League Rd
Colfax, IA 50054
Website: mysheepgate.org
Phone: 515-674-3713
Email: [email protected]
Organization details
EIN: 470601957
CEO/President: Michael Hunsberger
Chairman: Rev. Warren Hunsberger
Board size: 5
Founder: Rev. David Wilkerson
Ruling year: 1978
Tax deductible: Yes
Fiscal year end: 12/31
Member of ECFA: Yes
Member of ECFA since: 2016
Purpose
Sheepgate, a division of Adult & Teen Challenge of the Midlands, is one of the most successful recovery programs in the world. The biggest difference between us and more traditional recovery programs is our focus on Christ. We whole-heartedly depend on Christ-centered teaching and Biblical principles to be a guiding light that reveals darkness and results in genuine healing from difficult life issues and painful addictions.
Mission statement
Statement of faith
Donor confidence score
Show donor confidence score details
To understand our donor confidence score, click here.
Transparency grade
C
To understand our transparency grade, click here.
Financial efficiency ratings
Sector: Community Development
| Category | Rating | Overall rank | Sector rank |
| Overall efficiency rating | | 1375 of 1435 | 137 of 148 |
| Fund acquisition rating | | 1358 of 1435 | 134 of 148 |
| Resource allocation rating | | 1253 of 1435 | 127 of 148 |
| Asset utilization rating | | 1022 of 1436 | 103 of 148 |
To understand our financial efficiency ratings, click here.
Financial ratios
| Funding ratios | Sector median | 2024 | 2023 | 2022 | 2021 | 2020 |
Return on fundraising efforts Return on fundraising efforts = Fundraising expense / Total contributions | 6% | 16% | 21% | 19% | 16% | 17% |
Fundraising cost ratio Fundraising cost ratio = Fundraising expense / Total revenue | 4% | 14% | 17% | 16% | 14% | 14% |
Contributions reliance Contributions reliance = Total contributions / Total revenue | 91% | 86% | 80% | 85% | 84% | 84% |
Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses | 5% | 16% | 17% | 17% | 16% | 16% |
Other revenue reliance Other revenue reliance = Total other revenue / Total revenue | 9% | 14% | 20% | 15% | 16% | 16% |
| Operating ratios | Sector median | 2024 | 2023 | 2022 | 2021 | 2020 |
Program expense ratio Program expense ratio = Program services / Total expenses | 83% | 71% | 70% | 70% | 70% | 71% |
Spending ratio Spending ratio = Total expenses / Total revenue | 96% | 87% | 101% | 95% | 86% | 89% |
Program output ratio Program output ratio = Program services / Total revenue | 79% | 62% | 71% | 66% | 60% | 63% |
Savings ratio Savings ratio = Surplus (deficit) / Total revenue | 4% | 13% | -1% | 5% | 14% | 11% |
Reserve accumulation rate Reserve accumulation rate = Surplus (deficit) / Net assets | 4% | 19% | -2% | 8% | 28% | 25% |
General and admin ratio General and admin ratio = Management and general expense / Total expenses | 11% | 13% | 13% | 14% | 14% | 14% |
| Investing ratios | Sector median | 2024 | 2023 | 2022 | 2021 | 2020 |
Total asset turnover Total asset turnover = Total expenses / Total assets | 1.02 | 0.82 | 0.97 | 0.82 | 0.86 | 0.89 |
Degree of long-term investment Degree of long-term investment = Total assets / Total current assets | 1.89 | 3.28 | 5.06 | 3.98 | 3.52 | 4.87 |
Current asset turnover Current asset turnover = Total expenses / Total current assets | 2.14 | 2.70 | 4.91 | 3.25 | 3.01 | 4.36 |
| Liquidity ratios | Sector median | 2024 | 2023 | 2022 | 2021 | 2020 |
Current ratio Current ratio = Total current assets / Total current liabilities | 12.56 | 4.65 | 2.50 | 2.51 | 3.78 | 2.66 |
Current liabilities ratio Current liabilities ratio = Total current liabilities / Total current assets | 0.07 | 0.21 | 0.40 | 0.40 | 0.26 | 0.38 |
Liquid reserve level Liquid reserve level = (Total current assets - Total current liabilities) / (Total expenses / 12) | 4.79 | 3.49 | 1.46 | 2.22 | 2.93 | 1.72 |
| Solvency ratios | Sector median | 2024 | 2023 | 2022 | 2021 | 2020 |
Liabilities ratio Liabilities ratio = Total liabilities / Total assets | 10% | 35% | 43% | 46% | 50% | 57% |
Debt ratio Debt ratio = Debt / Total assets | 0% | 28% | 35% | 36% | 43% | 50% |
Reserve coverage ratio Reserve coverage ratio = Net assets / Total expenses | 77% | 79% | 59% | 66% | 58% | 48% |
Financials
| Balance sheet | |||||
| Assets | 2024 | 2023 | 2022 | 2021 | 2020 |
| Cash | $903,138 | $518,512 | $788,789 | $1,034,595 | $591,781 |
| Receivables, inventories, prepaids | $424,134 | $278,465 | $309,498 | $92,782 | $95,644 |
| Short-term investments | $0 | $0 | $0 | $0 | $0 |
| Other current assets | $0 | $0 | $0 | $0 | $0 |
| Total current assets | $1,327,272 | $796,977 | $1,098,287 | $1,127,377 | $687,425 |
| Long-term investments | $0 | $0 | $0 | $0 | $0 |
| Fixed assets | $2,947,555 | $3,137,567 | $3,157,744 | $2,840,930 | $2,661,393 |
| Other long-term assets | $80,172 | $97,667 | $114,223 | $0 | $0 |
| Total long-term assets | $3,027,727 | $3,235,234 | $3,271,967 | $2,840,930 | $2,661,393 |
| Total assets | $4,354,999 | $4,032,211 | $4,370,254 | $3,968,307 | $3,348,818 |
| Liabilities | 2024 | 2023 | 2022 | 2021 | 2020 |
| Payables and accrued expenses | $285,201 | $319,392 | $438,326 | $298,299 | $258,844 |
| Other current liabilities | $0 | $0 | $0 | $0 | $0 |
| Total current liabilities | $285,201 | $319,392 | $438,326 | $298,299 | $258,844 |
| Debt | $1,223,310 | $1,392,420 | $1,573,539 | $1,686,829 | $1,661,161 |
| Due to (from) affiliates | $0 | $0 | $0 | $0 | $0 |
| Other long-term liabilities | $1,338 | $2,192 | $1,846 | $2,325 | $2,429 |
| Total long-term liabilities | $1,224,648 | $1,394,612 | $1,575,385 | $1,689,154 | $1,663,590 |
| Total liabilities | $1,509,849 | $1,714,004 | $2,013,711 | $1,987,453 | $1,922,434 |
| Net assets | 2024 | 2023 | 2022 | 2021 | 2020 |
| Without donor restrictions | $2,696,927 | $2,174,379 | $2,212,715 | $1,840,170 | $1,303,227 |
| With donor restrictions | $148,223 | $143,828 | $143,828 | $140,684 | $123,157 |
| Net assets | $2,845,150 | $2,318,207 | $2,356,543 | $1,980,854 | $1,426,384 |
| Revenues and expenses | |||||
| Revenue | 2024 | 2023 | 2022 | 2021 | 2020 |
| Total contributions | $3,533,979 | $3,109,631 | $3,199,520 | $3,328,313 | $2,813,607 |
| Program service revenue | $564,724 | $549,311 | $305,682 | $411,457 | $371,708 |
| Membership dues | $0 | $0 | $0 | $0 | $0 |
| Investment income | $6,165 | $25,265 | $24,808 | $2,897 | $3,298 |
| Other revenue | $8,669 | $194,973 | $222,020 | $210,421 | $156,960 |
| Total other revenue | $579,558 | $769,549 | $552,510 | $624,775 | $531,966 |
| Total revenue | $4,113,537 | $3,879,180 | $3,752,030 | $3,953,088 | $3,345,573 |
| Expenses | 2024 | 2023 | 2022 | 2021 | 2020 |
| Program services | $2,535,963 | $2,737,440 | $2,488,081 | $2,388,952 | $2,114,912 |
| Management and general | $482,635 | $527,290 | $488,633 | $465,021 | $409,539 |
| Fundraising | $567,288 | $651,608 | $594,955 | $544,645 | $469,773 |
| Total expenses | $3,585,886 | $3,916,338 | $3,571,669 | $3,398,618 | $2,994,224 |
| Change in net assets | 2024 | 2023 | 2022 | 2021 | 2020 |
| Surplus (deficit) | $527,651 | ($37,158) | $180,361 | $554,470 | $351,349 |
| Other changes in net assets | $0 | $0 | $0 | $0 | $0 |
| Total change in net assets | $527,651 | ($37,158) | $180,361 | $554,470 | $351,349 |
Compensation
| Name | Title | Compensation |
| Michael Hunsberger | President | $78,145 |
Compensation data as of: 12/31/2024
Response from ministry
No response has been provided by this ministry.
The information below was provided to MinistryWatch by the ministry itself. It was last updated 5/10/2026. To update the information below, please email: [email protected]
History
Our parent company, Adult & Teen Challenge started in Brooklyn, New York in 1958 by Rev. David Wilkerson, a young country preacher from eastern Pennsylvania. One February afternoon, Wilkerson read an article in LIFE magazine about seven teenagers who were on trial for murder.
During a gang fight in Manhattan, these teens beat a young man to death. Troubled by what he read, and sensing God's prompting, Wilkerson made a trip to New York City. Sometime after this, Rev. Wilkerson resigned from his church in Pennsylvania and moved to New York City to work full time with teenage gang members. This new work was eventually called Teen Challenge. Shortly after that, Teen Challenge began offering help to teens addicted to drugs and alcohol.
During these early years, a large home was established in Brooklyn where a 12-month residential discipleship program was formed. Today there are nearly 200 centers across America working under the Adult & Teen Challenge banner and another 1,400 in 129 nations around the world.
The rest of the story of Teen Challenge is told in the best-selling book, The Cross and the Switchblade. This book has sold tens of millions of copies and has been translated into 35 different languages. Another exciting book that is available, Run Baby Run tells of notorious gang member Nicky Cruz who was one of David Wilkerson's s early converts in New York City. Beyond the Cross and the Switchblade and The Cross is Still Mightier than the Switchblade also details the important early history of Teen Challenge.