Is Wachtell Lipton Rosen & Katz Foundation Legit?

Quick charity verification for Wachtell Lipton Rosen & Katz Foundation (EIN: 133099901)

Verdict: Wachtell Lipton Rosen & Katz Foundation appears trustworthy

90/100Mission Score

$8.1MRevenue

$34.6MAssets

1Red Flags

4Strengths

Red Flags

Consistent operating deficits, where expenses exceed revenue, indicating reliance on asset drawdowns rather than sustainable annual income for operations.

Strengths

Zero reported officer compensation, ensuring maximum funds for charitable programs.
Substantial and stable asset base ($34,579,527) providing long-term financial security.
Consistent history of significant grantmaking, often exceeding annual revenue.
Minimal liabilities ($0 or $1 across all filings) indicating strong financial health and no debt burden.

Spending Breakdown

How Wachtell Lipton Rosen & Katz Foundation allocates its funds across programs, administration, and fundraising.

95%

Program Spending

Healthy — majority goes to mission

Admin Costs

Reasonable — admin costs in check

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 Wachtell Lipton Rosen & Katz Foundation

Is Wachtell Lipton Rosen & Katz Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Wachtell Lipton Rosen & Katz Foundation (EIN: 133099901) appears trustworthy. Mission Score: 90/100. 1 red flag identified, 4 strengths noted.

Is Wachtell Lipton Rosen & Katz Foundation a good charity to donate to?

Wachtell Lipton Rosen & Katz Foundation has a Mission Score of 90/100. Revenue: $8.1M. Assets: $34.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Wachtell Lipton Rosen & Katz Foundation?

The Employer Identification Number (EIN) for Wachtell Lipton Rosen & Katz Foundation is 133099901. 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 Wachtell Lipton Rosen & Katz Foundation spend its money?

Wachtell Lipton Rosen & Katz Foundation allocates 95% to programs, 5% to administration, and 0% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Wachtell Lipton Rosen & Katz Foundation's tax-exempt status?

You can verify Wachtell Lipton Rosen & Katz Foundation's tax-exempt status using EIN 133099901 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 Wachtell Lipton Rosen & Katz Foundation demonstrates a consistent pattern of significant grantmaking, often exceeding its annual revenue. For instance, in 2023, the foundation reported revenue of $5,336,755 but incurred expenses of $6,214,108, indicating a draw from its substantial asset base to fund its activities. This trend is visible in multiple years, such as 2021 (revenue $5,073,615, expenses $7,904,967) and 2020 (revenue $1,314,143, expenses $7,572,883). The foundation maintains a robust asset base, currently at $34,579,527, which provides financial stability despite operating deficits in several periods. Its liabilities are consistently reported as minimal ($0 or $1), suggesting strong financial management and no significant debt burden.

The organization's transparency is bolstered by its consistent filing of IRS Form 990s over the past decade. A key aspect of its financial health is the complete absence of reported officer compensation across all available filings, which suggests that administrative costs related to executive salaries are either non-existent or covered by the associated law firm, thereby maximizing funds available for programmatic activities. This structure, common for corporate foundations, contributes to a high degree of spending efficiency towards its charitable purpose. The foundation's financial strategy appears to be focused on distributing funds, even if it means drawing down assets in certain years, rather than accumulating large surpluses.

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Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.