Leo Foundation
Leo Foundation faces persistent operating deficits and declining assets, raising sustainability concerns.
EIN: 204879525 · Phoenix, AZ · NTEE: B84 · Updated: 2026-03-28
Is Leo Foundation Legit?
Significant Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Leo Foundation directs 70% of its spending to programs. This meets the industry benchmark of 65% for efficient nonprofits.
About Leo Foundation
Leo Foundation (EIN: 204879525) is a nonprofit organization based in Phoenix, AZ, classified under NTEE code B84. The organization reported total revenue of $362K and total assets of $257K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Leo Foundation's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Leo Foundation is a small nonprofit that has been operating for 19 years, with 14 years of IRS 990 filings on record (2010–2023). Revenue has grown at a compound annual rate of 5.4%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $287K |
| Total Expenses | $438K |
| Surplus / Deficit | $-150,673 |
| Total Assets | $322K |
| Total Liabilities | $81K |
| Net Assets | $241K |
| Operating Margin | -52.5% |
| Debt-to-Asset Ratio | 25.2% |
| Months of Reserves | 8.8 months |
Financial Health Grade: B
In 2023, Leo Foundation reported a deficit of $151K with expenses exceeding revenue, holds 8.8 months of operating reserves (strong position), has a debt-to-asset ratio of 25.2% (moderate leverage).
Financial Trends
Over 14 years of filings (2010–2023), Leo Foundation's revenue has grown at a compound annual growth rate (CAGR) of 5.4%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | +1.7% | +26.7% | -26.5% |
| 2022 | +3.3% | +58.2% | -13.8% |
| 2021 | +115.1% | -19.1% | +8.2% |
| 2020 | -49.9% | -13.6% | -22.8% |
| 2019 | -56.4% | -62.3% | -35.9% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 2007 |
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 Leo Foundation with a Mission Score of 45 out of 100 (Fair). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 20%
- programs: 70%
- fundraising: 10%
According to IRS 990 filings, Leo Foundation allocates its expenses as follows: admin: 20%, programs: 70%, fundraising: 10%. Approximately 70% goes to programs, indicating moderate mission focus.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $151K, with expenses exceeding revenue.
- Debt-to-asset ratio: 25.2%.
Executive Compensation Analysis
The Leo Foundation reports 0% officer compensation across all available filings, indicating that no salaries are paid to its officers. This is a positive aspect, suggesting that resources are directed away from executive pay and potentially towards programs or other operational needs.
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 Leo Foundation's IRS 990 filings:
- Persistent operating deficits (e.g., $150,673 in 2023, $63,384 in 2022)
- Significant and continuous decline in assets (from $1,301,214 in 2017 to $321,805 in 2023)
- Expenses consistently exceeding revenue in recent years
- Potential long-term sustainability issues due to financial trends
Strengths
The following positive indicators were identified for Leo Foundation:
- Consistent IRS 990 filing history, indicating transparency
- 0% officer compensation reported across all filings, suggesting efficient use of funds for leadership costs
Frequently Asked Questions about Leo Foundation
Is Leo Foundation a legitimate charity?
Based on AI analysis of IRS 990 filings, Leo Foundation (EIN: 204879525) significant concerns. Mission Score: 45/100. 4 red flags identified, 2 strengths noted.
How does Leo Foundation spend its money?
Leo Foundation directs 70% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Leo Foundation tax-deductible?
Leo Foundation is registered as a tax-exempt nonprofit (EIN: 204879525). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
Is the Leo Foundation financially sustainable?
Based on the consistent operating deficits (e.g., $150,673 deficit in 2023, $63,384 deficit in 2022) and the significant decline in assets from $1,301,214 in 2017 to $321,805 in 2023, the Leo Foundation's financial sustainability is questionable without significant changes to its revenue or expense structure.
Why are the assets declining so rapidly?
The rapid decline in assets is primarily due to the organization consistently spending more than it earns. For example, in 2023, expenses ($437,822) far exceeded revenue ($287,149), leading to a reduction in net assets to cover the shortfall.
What is the organization's strategy to address its operating deficits?
The provided IRS 990 data does not detail specific strategies to address operating deficits. However, the recurring nature of these deficits suggests a need for a revised financial plan focusing on increased revenue generation or expense reduction.
How does the lack of officer compensation impact the organization?
The 0% officer compensation indicates that the organization is not allocating funds to executive salaries, which can be seen as a positive for resource allocation. However, it doesn't negate the overall financial challenges posed by the operating deficits.
Filing History
IRS 990 filing history for Leo Foundation showing financial trends over 14 years of public records:
Over 14 years of IRS 990 filings (2010–2023), Leo Foundation's revenue has grown by 97.9%, moving from $145K to $287K. Total assets increased by 190.5% over the same period, from $111K to $322K. Total functional expenses rose by 320.6%, from $104K to $438K. In its most recent filing year (2023), Leo Foundation reported a deficit of $151K, with expenses exceeding revenue. The organization holds $81K in liabilities against $322K in assets (debt-to-asset ratio: 25.2%), resulting in net assets of $241K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $287K | $438K | $322K | $81K | — | — |
| 2022 | $282K | $346K | $438K | $44K | — | — |
| 2021 | $273K | $219K | $508K | $28K | — | View 990 |
| 2020 | $127K | $270K | $470K | $44K | — | View 990 |
| 2019 | $254K | $312K | $609K | $55K | — | View 990 |
| 2018 | $582K | $829K | $949K | $377K | — | View 990 |
| 2017 | $759K | $777K | $1.3M | $426K | — | View 990 |
| 2016 | $736K | $520K | $1.1M | $231K | — | View 990 |
| 2015 | $258K | $245K | $729K | $101K | — | View 990 |
| 2014 | $342K | $365K | $738K | $125K | — | View 990 |
| 2013 | $323K | $457K | $635K | $0 | — | View 990 |
| 2012 | $982K | $352K | $770K | $0 | — | View 990 |
| 2011 | $197K | $169K | $139K | $0 | — | View 990 |
| 2010 | $145K | $104K | $111K | $0 | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $287K, expenses of $438K, and assets of $322K (revenue +1.7% year-over-year).
- 2022: Revenue of $282K, expenses of $346K, and assets of $438K (revenue +3.3% year-over-year).
- 2021: Revenue of $273K, expenses of $219K, and assets of $508K (revenue +115.1% year-over-year).
- 2020: Revenue of $127K, expenses of $270K, and assets of $470K (revenue -49.9% year-over-year).
- 2019: Revenue of $254K, expenses of $312K, and assets of $609K (revenue -56.4% year-over-year).
- 2018: Revenue of $582K, expenses of $829K, and assets of $949K (revenue -23.3% year-over-year).
- 2017: Revenue of $759K, expenses of $777K, and assets of $1.3M (revenue +3.0% year-over-year).
- 2016: Revenue of $736K, expenses of $520K, and assets of $1.1M (revenue +185.4% year-over-year).
- 2015: Revenue of $258K, expenses of $245K, and assets of $729K (revenue -24.6% year-over-year).
- 2014: Revenue of $342K, expenses of $365K, and assets of $738K (revenue +6.1% year-over-year).
- 2013: Revenue of $323K, expenses of $457K, and assets of $635K (revenue -67.1% year-over-year).
- 2012: Revenue of $982K, expenses of $352K, and assets of $770K (revenue +398.4% year-over-year).
- 2011: Revenue of $197K, expenses of $169K, and assets of $139K (revenue +35.8% year-over-year).
- 2010: Revenue of $145K, expenses of $104K, and assets of $111K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Leo Foundation:
Data Sources and Methodology
This transparency report for Leo 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.