Is Waterfall Arts Legit?

Strengths

Consistent reporting of 0% officer compensation across all filings, indicating efficient use of funds.
Significant growth in assets over the past decade, from $504,487 in 2014 to $1,863,067 in 2023.
Long history of IRS 990 filings (13 periods), demonstrating strong transparency and accountability.
Strong revenue generation in prior years (e.g., $853,420 in 202212 and $827,974 in 202112) allowed for asset accumulation.

Spending Breakdown

How Waterfall Arts allocates its funds across programs, administration, and fundraising.

85%

Program Spending

Healthy — majority goes to mission

10%

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 Waterfall Arts

Is Waterfall Arts a legitimate charity?

Based on AI analysis of IRS 990 filings, Waterfall Arts (EIN: 10528831) appears trustworthy. Mission Score: 88/100. 1 red flag identified, 4 strengths noted.

Is Waterfall Arts a good charity to donate to?

Waterfall Arts has a Mission Score of 88/100. Revenue: $585K. Assets: $1.5M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Waterfall Arts?

The Employer Identification Number (EIN) for Waterfall Arts is 10528831. 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 Waterfall Arts spend its money?

Waterfall Arts allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Waterfall Arts's tax-exempt status?

You can verify Waterfall Arts's tax-exempt status using EIN 10528831 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

Waterfall Arts demonstrates a generally stable financial history with consistent revenue streams, though the most recent filing (202312) shows expenses slightly exceeding revenue ($635,892 vs. $611,289), resulting in a net deficit for that period. This contrasts with the prior two years (202212 and 202112) where revenue significantly outpaced expenses, allowing for asset growth. The organization's assets have shown substantial growth over the past decade, from $504,487 in 2014 to $1,863,067 in 2023, indicating effective asset management and potentially successful capital campaigns or investment strategies. Liabilities have also increased, reaching $549,670 in 2023, which should be monitored relative to asset growth.

Spending efficiency appears strong given the consistent program focus implied by the NTEE code and the absence of officer compensation, suggesting resources are directed towards the mission rather than executive salaries. The organization's transparency is bolstered by its consistent filing of IRS Form 990s over 13 periods, providing a clear historical financial record. The lack of reported officer compensation is a significant positive indicator for donor confidence, as it suggests a volunteer-led or very lean administrative structure at the top.

While the 2023 deficit is a minor concern, it follows periods of strong surpluses and asset accumulation. Overall, Waterfall Arts appears to be a financially sound organization with a commitment to its mission, as evidenced by its financial structure and reporting. Further analysis of program vs. administrative spending would provide a more granular view of efficiency, but the available data points to a well-managed nonprofit.

Verdict: Waterfall Arts appears trustworthy

Red Flags