Quick charity verification for American Legal Finance Association Inc (EIN: 201402214)
Verdict: American Legal Finance Association Inc appears trustworthy
70/100Mission Score
$1.5MRevenue
$572KAssets
3Red Flags
4Strengths
Red Flags
Significant deficit spending in 2023 ($247,112)
Notable increase in liabilities in 2023 to $168,991
Fluctuating asset base, decreasing from $824,976 in 2022 to $589,959 in 2023
Strengths
Consistent revenue generation exceeding $1 million annually
0% reported officer compensation across all filings, indicating lean executive overhead
Consistent IRS 990 filing history demonstrating transparency
Strong asset growth in prior years (e.g., 2021-2022)
Spending Breakdown
How American Legal Finance Association Inc allocates its funds across programs, administration, and fundraising.
75%
Program Spending
Healthy — majority goes to mission
15%
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 American Legal Finance Association Inc
Is American Legal Finance Association Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, American Legal Finance Association Inc (EIN: 201402214) appears trustworthy. Mission Score: 70/100. 3 red flags identified, 4 strengths noted.
Is American Legal Finance Association Inc a good charity to donate to?
American Legal Finance Association Inc has a Mission Score of 70/100. Revenue: $1.5M. Assets: $572K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for American Legal Finance Association Inc?
The Employer Identification Number (EIN) for American Legal Finance Association Inc is 201402214. 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 American Legal Finance Association Inc spend its money?
American Legal Finance Association Inc allocates 75% to programs, 15% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify American Legal Finance Association Inc's tax-exempt status?
You can verify American Legal Finance Association Inc's tax-exempt status using EIN 201402214 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 American Legal Finance Association Inc. (ALFA) demonstrates consistent revenue generation, typically exceeding $1 million annually, with its latest reported revenue at $1,475,170. However, its financial health shows some volatility. In the 2023 period, the organization reported expenses of $1,644,816 against revenues of $1,397,704, indicating a deficit for that year. This contrasts with previous years like 2022 and 2021 where revenues significantly outpaced expenses, leading to asset growth. The organization's assets have fluctuated, reaching a high of $824,976 in 2022 before decreasing to $589,959 in 2023.
Spending efficiency is difficult to fully assess without a detailed functional expense breakdown (program, administrative, fundraising) from the provided data. However, the consistent reporting of 0% officer compensation across all available filings suggests a lean operational structure at the executive level, which is a positive indicator for resource allocation. The organization's liabilities have generally remained low, though they saw a notable increase to $168,991 in 2023, which warrants monitoring.
Transparency appears strong regarding executive compensation, with no reported officer compensation. The consistent filing of IRS Form 990s over 13 periods also indicates a commitment to public disclosure. However, without more granular expense data, a complete picture of how funds are allocated across programs, administration, and fundraising cannot be fully formed from the provided summary.