Les Paul Foundation

Les Paul Foundation consistently spends more than it earns, drawing on substantial asset reserves.

EIN: 133911396 · Syosset, NY · NTEE: T70J · Updated: 2026-03-28

$11.6MRevenue

$42.3MAssets

75/100Mission Score (Good)

T70J

About Les Paul Foundation

Les Paul Foundation (EIN: 133911396) is a nonprofit organization based in Syosset, NY, classified under NTEE code T70J. The organization reported total revenue of $11.6M and total assets of $42.3M according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Les Paul Foundation's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.

AI Transparency Report

The Les Paul Foundation demonstrates a generally stable financial position with substantial assets, reported at $40,720,533 in 2023, significantly exceeding its liabilities of $290,922. However, the organization has consistently reported expenses exceeding revenue in recent years, with 2023 showing expenses of $2,266,810 against revenue of $1,321,449, and 2022 with expenses of $2,045,168 against revenue of $1,448,188. This trend of deficit spending, while potentially sustainable given its large asset base, warrants closer examination to understand if it's due to strategic asset utilization or an unsustainable operational model. The absence of reported officer compensation across all available filings suggests a high degree of transparency regarding executive pay, indicating that the organization's leadership is either unpaid or compensated through other means not captured in this specific field, which is a positive sign for donor confidence.

Mission Effectiveness Score

NonprofitSpending's AI analysis rates Les Paul Foundation with a Mission Score of 75 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: 15%
programs: 80%
fundraising: 5%

According to IRS 990 filings, Les Paul Foundation allocates its expenses as follows: admin: 15%, programs: 80%, fundraising: 5%. With 80% directed toward programs, this reflects a strong commitment to its charitable mission.

Executive Compensation Analysis

Executive compensation is reported as 0% across all available filings, indicating that no officers or key employees receive compensation directly from the organization, which is highly unusual for an organization with assets exceeding $40 million and annual expenses over $2 million.

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 Les Paul Foundation's IRS 990 filings:

Consistent deficit spending (expenses exceeding revenue) in recent years, e.g., $2.2M expenses vs. $1.3M revenue in 2023.
Unusually low or zero reported officer compensation for an organization with over $40 million in assets, which may obscure true leadership costs.

Strengths

The following positive indicators were identified for Les Paul Foundation:

Substantial asset base ($40,720,533 in 2023) provides financial stability and long-term capacity.
Very low liabilities ($290,922 in 2023) indicates strong financial health and minimal debt burden.
Consistent reporting of 0% officer compensation, if accurate, suggests a highly volunteer-driven or exceptionally lean leadership compensation model.

Frequently Asked Questions about Les Paul Foundation

How does the Les Paul Foundation sustain its operations given consistent deficit spending?

The Foundation appears to be drawing down on its substantial asset base, which was $40,720,533 in 2023, to cover operational expenses that have exceeded revenue in most recent years. This strategy is sustainable in the short to medium term due to its large reserves, but long-term sustainability would require either increased revenue or reduced expenses.

What is the source of the organization's revenue, and is it diversified?

While specific revenue sources are not detailed in the provided summary, the fluctuating annual revenue (e.g., $785,097 in 2020 vs. $2,525,936 in 2021) suggests potential reliance on less predictable income streams, such as donations or investment returns, rather than consistent program service fees.

Why is officer compensation consistently reported as 0%?

A consistent 0% officer compensation across all filings for an organization of this size is highly unusual. It could mean that officers are volunteers, compensated by a related entity, or that the compensation is reported under a different category not captured by 'Officer Comp' in this summary.

Filing History

IRS 990 filing history for Les Paul Foundation showing financial trends over 12 years of public records:

Over 12 years of IRS 990 filings (2010–2023), Les Paul Foundation's revenue has declined by 74.5%, moving from $5.2M to $1.3M. Total assets increased by 695.9% over the same period, from $5.1M to $40.7M. Total functional expenses rose by 1795%, from $120K to $2.3M. In its most recent filing year (2023), Les Paul Foundation reported a deficit of $945K, with expenses exceeding revenue. The organization holds $291K in liabilities against $40.7M in assets (debt-to-asset ratio: 0.7%), resulting in net assets of $40.4M.

Year	Revenue	Expenses	Assets	Liabilities	Officer Comp.	PDF
2023	$1.3M	$2.3M	$40.7M	$291K	—	—
2022	$1.4M	$2.0M	$38.4M	$22K	—	View 990
2021	$2.5M	$2.3M	$45.2M	$22K	—	View 990
2020	$785K	$1.9M	$41.3M	$21K	—	View 990
2019	$1.9M	$2.0M	$40.5M	$20K	—	View 990
2018	$1.1M	$1.9M	$36.1M	$226	—	View 990
2015	$1.2M	$2.7M	$36.9M	$27K	—	View 990
2014	$1.7M	$1.5M	$39.1M	$25K	—	View 990
2013	$3.9M	$718K	$38.0M	$1	—	View 990
2012	$533K	$382K	$5.7M	$20	—	View 990
2011	$357K	$239K	$5.1M	$0	—	View 990
2010	$5.2M	$120K	$5.1M	$0	—	View 990

Year-by-Year Financial Summary

2023: Revenue of $1.3M, expenses of $2.3M, and assets of $40.7M (revenue -8.8% year-over-year).
2022: Revenue of $1.4M, expenses of $2.0M, and assets of $38.4M (revenue -42.7% year-over-year).
2021: Revenue of $2.5M, expenses of $2.3M, and assets of $45.2M (revenue +221.7% year-over-year).
2020: Revenue of $785K, expenses of $1.9M, and assets of $41.3M (revenue -58.8% year-over-year).
2019: Revenue of $1.9M, expenses of $2.0M, and assets of $40.5M (revenue +75.3% year-over-year).
2018: Revenue of $1.1M, expenses of $1.9M, and assets of $36.1M (revenue -9.9% year-over-year).
2015: Revenue of $1.2M, expenses of $2.7M, and assets of $36.9M (revenue -30.8% year-over-year).
2014: Revenue of $1.7M, expenses of $1.5M, and assets of $39.1M (revenue -55.2% year-over-year).
2013: Revenue of $3.9M, expenses of $718K, and assets of $38.0M (revenue +630.2% year-over-year).
2012: Revenue of $533K, expenses of $382K, and assets of $5.7M (revenue +49.3% year-over-year).
2011: Revenue of $357K, expenses of $239K, and assets of $5.1M (revenue -93.1% year-over-year).
2010: Revenue of $5.2M, expenses of $120K, and assets of $5.1M.

Data Sources and Methodology

This transparency report for Les Paul 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.