Is Leo Foundation Legit?

Spending Breakdown

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

70%

Program Spending

Below average — room for improvement

20%

Admin Costs

Reasonable — admin costs in check

10%

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 Leo Foundation

Is Leo Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, Leo Foundation (EIN: 204879525) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.

Is Leo Foundation a good charity to donate to?

Leo Foundation has a Mission Score of 45/100. Revenue: $362K. Assets: $257K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for Leo Foundation?

The Employer Identification Number (EIN) for Leo Foundation is 204879525. 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 Leo Foundation spend its money?

Leo Foundation allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

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

You can verify Leo Foundation's tax-exempt status using EIN 204879525 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 Leo Foundation exhibits a concerning trend of operating deficits in recent years, with expenses consistently exceeding revenue. For instance, in 2023, expenses were $437,822 against revenues of $287,149, and in 2022, expenses were $345,655 against revenues of $282,271. This sustained deficit spending has led to a significant decline in assets, from a peak of $1,301,214 in 2017 to $321,805 in 2023, indicating a potential long-term sustainability issue. While the organization reports 0% officer compensation, which is a positive sign for minimizing administrative overhead, the overall financial health is challenged by its inability to cover its operational costs through incoming revenue.

The foundation's financial transparency appears adequate through its consistent IRS 990 filings. However, the consistent decline in assets and the recurring operational deficits raise questions about the effectiveness of its fundraising and financial management strategies. The NTEE code B84 suggests a focus on 'Housing, Shelter', which is a critical area, but the financial data indicates a struggle to maintain its operational capacity. Without a clear reversal of the deficit spending trend, the organization's ability to sustain its programs and mission may be compromised.

Despite the financial challenges, the absence of officer compensation is a notable strength, suggesting that resources are not being diverted to high executive salaries. However, the overall financial picture points to a need for strategic intervention to improve revenue generation or reduce expenses to ensure long-term viability and impact. The significant drop in assets over the past few years is a critical indicator that requires immediate attention and a revised financial strategy.

Verdict: Leo Foundation shows mixed signals

Red Flags

Strengths