Is Wellborn Family Foundation Legit? —…

Spending Breakdown

How Wellborn Family Foundation allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

15%

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 Wellborn Family Foundation

Is Wellborn Family Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Wellborn Family Foundation (EIN: 204462484) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 3 strengths noted.

Is Wellborn Family Foundation a good charity to donate to?

Wellborn Family Foundation has a Mission Score of 45/100. Revenue: $200K. Assets: $1.9M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Wellborn Family Foundation?

The Employer Identification Number (EIN) for Wellborn Family Foundation is 204462484. 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 Wellborn Family Foundation spend its money?

Wellborn Family Foundation allocates 80% to programs, 15% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify Wellborn Family Foundation's tax-exempt status?

You can verify Wellborn Family Foundation's tax-exempt status using EIN 204462484 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 Wellborn Family Foundation exhibits a concerning financial trend with consistent net losses over the past decade, indicating that its expenses routinely exceed its revenue. For example, in 2023, the foundation reported revenue of $350 against expenses of $73,703, leading to a significant deficit. This pattern has led to a steady decline in its asset base, from $2,707,606 in 2011 to $1,747,668 in 2023. While the foundation maintains a very low liability profile ($1 across all reported periods), the ongoing depletion of assets raises questions about its long-term sustainability and funding model. The lack of reported officer compensation suggests that administrative costs might be low, but without a detailed breakdown of expenses, it's difficult to fully assess spending efficiency.

The foundation's financial health appears to be deteriorating due to its operational model, which consistently spends more than it generates in revenue. This is a critical issue for a nonprofit, as it relies on its existing asset base to cover operational costs. The consistent decline in assets, coupled with minimal revenue generation, suggests that the foundation may be primarily spending down its endowment rather than operating on a sustainable income stream. Transparency is generally good in terms of filing history, but the financial statements themselves highlight a fundamental challenge in balancing income and expenditures.

Given the consistent net losses and declining asset base, the foundation's financial stability is a significant concern. While the absence of officer compensation is a positive indicator for minimizing administrative overhead, the overall financial strategy appears unsustainable. A detailed look into the nature of its expenses (program vs. administrative) would be crucial for a complete assessment, but the current data strongly suggests a foundation that is drawing down its principal rather than operating on a self-sustaining basis.

Is Wellborn Family Foundation Legit?

Verdict: Wellborn Family Foundation shows mixed signals

Red Flags

Strengths