Is Investment Company Institute Legit? —…

Quick charity verification for Investment Company Institute (EIN: 135266605)

Spending Breakdown

How Investment Company Institute allocates its funds across programs, administration, and fundraising.

70%

Program Spending

Below average — room for improvement

20%

Admin Costs

Reasonable — admin costs in check

10%

Fundraising

Within typical range

How to read this: Well-run charities typically spend 75% or more on programs, keep admin under 25%, and fundraising under 15%. A high program ratio means more of every dollar goes directly to the mission.

How to Interpret This Report

What Red Flags Mean

Red flags are potential warning signs identified by AI analysis of IRS 990 filings. They may indicate issues like declining revenue, high executive pay relative to program spending, lack of transparency, or governance concerns. A single red flag does not necessarily mean an organization is untrustworthy, but multiple flags warrant further investigation before donating.

What Mission Score Measures

The Mission Score (0-100) evaluates how effectively a nonprofit fulfills its stated purpose. It combines multiple factors: program spending efficiency (how much goes to programs vs. overhead), financial health and sustainability, governance quality, transparency in reporting, and consistency of operations over time. A score of 70+ indicates strong alignment with the organization’s mission.

Using This Data for Donation Decisions

Use this report as one input in your decision. Look at the overall Mission Score for a quick assessment, review red flags and strengths for specific concerns, check the spending breakdown to see where money goes, and compare executive compensation to the organization’s size. Consider viewing the full transparency report for deeper analysis, and always verify tax-exempt status with the IRS before making large donations.

Frequently Asked Questions about Investment Company Institute

Is Investment Company Institute a legitimate charity?

Based on AI analysis of IRS 990 filings, Investment Company Institute (EIN: 135266605) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.

Is Investment Company Institute a good charity to donate to?

Investment Company Institute has a Mission Score of 75/100. Revenue: $109.3M. Assets: $146.4M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Investment Company Institute?

The Employer Identification Number (EIN) for Investment Company Institute is 135266605. This is the unique tax ID assigned by the IRS.

What is a Mission Score?

The Mission Score is a 0-100 rating that measures how effectively a nonprofit fulfills its stated mission. It factors in program spending efficiency, financial transparency, governance practices, and outcome reporting. Scores above 70 indicate strong mission alignment, 40-69 suggest mixed performance, and below 40 signals potential concerns.

How does Investment Company Institute spend its money?

Investment Company Institute allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Investment Company Institute's tax-exempt status?

You can verify Investment Company Institute's tax-exempt status using EIN 135266605 on the IRS Tax Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. You can also request copies of their Form 990 directly from the organization, as they are required by law to provide them upon request.

AI Transparency Report

The Investment Company Institute (ICI) demonstrates consistent financial health with robust revenue streams and substantial assets. In the latest available filing (202309), the organization reported revenues of $84,136,163 against expenses of $77,130,848, indicating a healthy surplus. Its assets have grown significantly over the past few years, reaching $148,674,197 in 202309, up from $76,230,571 in 202109, suggesting strong financial management and accumulation of reserves. The organization consistently reports 0% officer compensation, which is unusual for an organization of this size and could indicate that compensation is reported under different categories or that key leadership roles are compensated through other means, warranting further investigation for full transparency.

Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses from the provided data, it's challenging to precisely assess efficiency ratios. However, the consistent surpluses suggest that the organization is managing its expenses effectively relative to its income. The significant growth in assets also points to a financially stable entity. The lack of reported officer compensation directly on the 990 form for 'Officer Comp' is a notable point for transparency, as it deviates from typical reporting for large non-profits and could obscure the true cost of executive leadership.

Overall, ICI appears to be a financially sound organization with a strong balance sheet. Its consistent revenue generation and asset growth are positive indicators. However, the absence of reported officer compensation under the specified field on the 990 filings for an organization with over $80 million in annual revenue raises questions about the completeness of executive compensation disclosure and could be perceived as a transparency concern.

Is Investment Company Institute Legit?

Verdict: Investment Company Institute appears trustworthy

Red Flags

Strengths