The Fairholme Foundation
Fairholme Foundation reports consistent deficits and declining assets despite zero executive compensation.
EIN: 10718240 · Coral Gables, FL · NTEE: T21 · Updated: 2026-03-28
Is The Fairholme Foundation Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
The Fairholme Foundation directs 90% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About The Fairholme Foundation
The Fairholme Foundation (EIN: 10718240) is a nonprofit organization based in Coral Gables, FL, classified under NTEE code T21. The organization reported total revenue of $1.9M and total assets of $244.3M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of The Fairholme Foundation's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
The Fairholme Foundation is a mid-size nonprofit that has been operating for 24 years, with 9 years of IRS 990 filings on record (2011–2022). Revenue has grown at a compound annual rate of -26.7%.
Key Financial Metrics (2022)
From the most recent IRS 990 filing on record:
| Total Revenue | $1.3M |
| Total Expenses | $12.7M |
| Surplus / Deficit | $-11,466,319 |
| Total Assets | $278.3M |
| Total Liabilities | $1 |
| Net Assets | $278.3M |
| Operating Margin | -896.1% |
| Debt-to-Asset Ratio | 0.0% |
| Months of Reserves | 262.0 months |
Financial Health Grade: B
In 2022, The Fairholme Foundation reported a deficit of $11.5M with expenses exceeding revenue, holds 262.0 months of operating reserves (strong position), has a debt-to-asset ratio of 0.0% (very low leverage).
Financial Trends
Over 9 years of filings (2011–2022), The Fairholme Foundation's revenue has declined at a compound annual growth rate (CAGR) of -26.7%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2022 | +348.4% | +74.5% | -4.0% |
| 2020 | -154.1% | -81.9% | -1.2% |
| 2019 | -96.1% | +182.7% | -21.4% |
| 2015 | -58.5% | -13.8% | +14.1% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 2002 |
Classification data from ProPublica Nonprofit Explorer. Additional BMF data may be available after enrichment.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates The Fairholme Foundation with a Mission Score of 70 out of 100 (Good). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 5%
- programs: 90%
- fundraising: 5%
According to IRS 990 filings, The Fairholme Foundation allocates its expenses as follows: admin: 5%, programs: 90%, fundraising: 5%. With 90% directed toward programs, this reflects a strong commitment to its charitable mission.
Key Financial Metrics (2022)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $11.5M, with expenses exceeding revenue.
- Debt-to-asset ratio: 0.0%.
Executive Compensation Analysis
The Fairholme Foundation consistently reports 0% officer compensation across all available filings, indicating that no salaries or benefits are paid to its officers. This is a highly positive aspect, suggesting that administrative costs related to executive pay are non-existent and resources are potentially maximized for programmatic or investment activities.
Executive compensation data is sourced from IRS 990 filings, which require nonprofits to disclose the compensation of officers, directors, trustees, and key employees. NonprofitSpending analyzes this data relative to the organization's total revenue and sector benchmarks to assess whether executive pay is reasonable.
Red Flags
The following concerns were identified during AI analysis of The Fairholme Foundation's IRS 990 filings:
- Consistent and significant deficits (expenses far exceeding revenue) in recent years, e.g., 2022 expenses of $12.7M vs. revenue of $1.2M.
- Negative revenue reported in 2020 ($-1,180,605), indicating substantial losses.
- Declining asset base from $382.5M in 2015 to $244.3M currently, raising questions about long-term financial stability.
- High expense-to-revenue ratio in multiple periods, suggesting reliance on asset drawdowns or significant investment losses.
Strengths
The following positive indicators were identified for The Fairholme Foundation:
- Zero officer compensation reported across all filings, indicating efficient governance and resource allocation.
- Substantial asset base ($244,340,479) provides significant capacity for grantmaking.
- Consistent filing history (9 filings) demonstrates transparency and compliance with IRS regulations.
Frequently Asked Questions about The Fairholme Foundation
Is The Fairholme Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, The Fairholme Foundation (EIN: 10718240) some concerns. Mission Score: 70/100. 4 red flags identified, 3 strengths noted.
How does The Fairholme Foundation spend its money?
The Fairholme Foundation directs 90% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to The Fairholme Foundation tax-deductible?
The Fairholme Foundation is registered as a tax-exempt nonprofit (EIN: 10718240). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Why have expenses consistently exceeded revenue in recent years?
The filings show expenses significantly exceeding revenue in multiple periods, such as $12,745,925 in expenses against $1,279,606 in revenue in 2022. This could be due to substantial grant disbursements, investment losses, or a strategy to spend down assets.
What is the nature of the negative revenue reported in 2020?
In 2020, the foundation reported revenue of $-1,180,605. This typically indicates significant investment losses or other non-operating losses that exceeded any income generated during that period.
What is the foundation's grantmaking strategy given its declining assets?
The foundation's assets have decreased from $382,553,098 in 2015 to $244,340,479 currently. Understanding its grantmaking strategy in light of this decline is crucial for assessing its long-term impact and sustainability.
How does the foundation manage its investment portfolio?
Given the significant fluctuations in revenue, including negative revenue, and the decline in assets, the foundation's investment management practices warrant further scrutiny to understand their impact on financial health.
Filing History
IRS 990 filing history for The Fairholme Foundation showing financial trends over 9 years of public records:
Over 9 years of IRS 990 filings (2011–2022), The Fairholme Foundation's revenue has declined by 96.7%, moving from $38.9M to $1.3M. Total assets increased by 114.7% over the same period, from $129.6M to $278.3M. Total functional expenses rose by 169.3%, from $4.7M to $12.7M. In its most recent filing year (2022), The Fairholme Foundation reported a deficit of $11.5M, with expenses exceeding revenue. The organization holds $1 in liabilities against $278.3M in assets (debt-to-asset ratio: 0.0%), resulting in net assets of $278.3M.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2022 | $1.3M | $12.7M | $278.3M | $1 | — | View 990 |
| 2021 | $285K | $7.3M | $289.8M | $1 | — | View 990 |
| 2020 | $-1,180,605 | $2.5M | $296.8M | $1 | — | View 990 |
| 2019 | $2.2M | $14.1M | $300.5M | $481 | — | — |
| 2015 | $55.9M | $5.0M | $382.6M | $30.0M | — | View 990 |
| 2014 | $134.6M | $5.8M | $335.3M | $30.0M | — | View 990 |
| 2013 | $65.7M | $35.7M | $206.4M | $30.0M | — | View 990 |
| 2012 | $21.9M | $5.1M | $146.4M | $1 | — | View 990 |
| 2011 | $38.9M | $4.7M | $129.6M | $1 | — | View 990 |
Year-by-Year Financial Summary
- 2022: Revenue of $1.3M, expenses of $12.7M, and assets of $278.3M (revenue +348.4% year-over-year).
- 2021: Revenue of $285K, expenses of $7.3M, and assets of $289.8M.
- 2020: Revenue of $-1,180,605, expenses of $2.5M, and assets of $296.8M (revenue -154.1% year-over-year).
- 2019: Revenue of $2.2M, expenses of $14.1M, and assets of $300.5M (revenue -96.1% year-over-year).
- 2015: Revenue of $55.9M, expenses of $5.0M, and assets of $382.6M (revenue -58.5% year-over-year).
- 2014: Revenue of $134.6M, expenses of $5.8M, and assets of $335.3M (revenue +105.0% year-over-year).
- 2013: Revenue of $65.7M, expenses of $35.7M, and assets of $206.4M (revenue +200.2% year-over-year).
- 2012: Revenue of $21.9M, expenses of $5.1M, and assets of $146.4M (revenue -43.7% year-over-year).
- 2011: Revenue of $38.9M, expenses of $4.7M, and assets of $129.6M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for The Fairholme Foundation:
Data Sources and Methodology
This transparency report for The Fairholme Foundation is generated by NonprofitSpending's AI analysis engine. The data is sourced from publicly available IRS 990 filings accessed through the ProPublica Nonprofit Explorer API and IRS electronic filing records. The Mission Score, spending breakdown, and other analytical insights are produced by artificial intelligence and should be used as one of multiple factors when evaluating a nonprofit organization.
IRS 990 forms are annual information returns that most tax-exempt organizations must file with the IRS. These forms provide detailed financial information including revenue, expenses, assets, liabilities, and compensation of officers. NonprofitSpending processes this data to provide accessible transparency reports for donors, researchers, and the general public.
Disclaimer
AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.