Quick charity verification for Luddy Charitable Foundation (EIN: 113660572)
Verdict: Luddy Charitable Foundation appears trustworthy
85/100Mission Score
$46.6MRevenue
$61.1MAssets
2Red Flags
4Strengths
Red Flags
Lack of detailed program spending breakdown in summary data, common for grantmakers but requires deeper dive into Schedule I.
Zero officer compensation is unusual and might indicate compensation is handled by an affiliated entity or all leadership is volunteer, which could raise questions about sustainability or potential conflicts of interest if not fully disclosed elsewhere.
Strengths
Exceptional asset growth, with assets increasing from $9,111 in 2011 to $56,618,386 in 2023, demonstrating strong financial management and sustainability.
Very low expense ratio relative to revenue, indicating efficient operations for a grant-making foundation (e.g., 2023 expenses were only 6.5% of revenue).
Consistent reporting of zero officer compensation, suggesting high transparency regarding executive pay and a focus on maximizing funds for charitable purposes.
Strong revenue generation, with significant inflows like $31,260,255 in 2023, enabling substantial growth and future philanthropic capacity.
Spending Breakdown
How Luddy Charitable Foundation allocates its funds across programs, administration, and fundraising.
90%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
0%
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 Luddy Charitable Foundation
Is Luddy Charitable Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Luddy Charitable Foundation (EIN: 113660572) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is Luddy Charitable Foundation a good charity to donate to?
Luddy Charitable Foundation has a Mission Score of 85/100. Revenue: $46.6M. Assets: $61.1M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Luddy Charitable Foundation?
The Employer Identification Number (EIN) for Luddy Charitable Foundation is 113660572. 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 Luddy Charitable Foundation spend its money?
Luddy Charitable Foundation allocates 90% to programs, 10% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Luddy Charitable Foundation's tax-exempt status?
You can verify Luddy Charitable Foundation's tax-exempt status using EIN 113660572 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 Luddy Charitable Foundation demonstrates strong financial health, particularly in its asset growth and revenue generation. In the 2023 fiscal period, the foundation reported substantial revenue of $31,260,255 against expenses of $2,043,558, leading to significant asset accumulation, reaching $56,618,386. This indicates a foundation primarily focused on building its endowment and making grants, rather than direct program delivery. The consistent reporting of zero officer compensation across all available filings suggests a high degree of financial transparency regarding executive pay and a lean operational structure.
The foundation's spending efficiency, while appearing low in terms of direct expenses relative to revenue, is typical for a grant-making foundation where the primary 'program' activity is distributing funds to other organizations. The low expense ratios (e.g., 2023 expenses were only about 6.5% of revenue) suggest that a large portion of incoming funds are being retained for future grant-making or investment, which is a common strategy for building a sustainable philanthropic endowment. The NTEE code T90, which typically refers to 'Private Grantmaking Foundations', aligns with this operational model.
Overall, the Luddy Charitable Foundation appears to be a well-managed entity focused on long-term philanthropic impact through strategic asset growth and grant-making. Its transparency is bolstered by consistent financial reporting and the absence of officer compensation, indicating that resources are either being invested or passed through to beneficiaries without significant administrative overhead for executive salaries.