Quick charity verification for American Legion (EIN: 10018930)
Verdict: American Legion appears trustworthy
75/100Mission Score
$1.9MRevenue
$2.0MAssets
1Red Flags
4Strengths
Red Flags
Lack of detailed functional expense breakdown in provided data, hindering precise spending efficiency analysis.
Strengths
Consistent financial stability with growing assets, reaching $1,144,748 in 2023.
0% officer compensation reported across all filings, indicating volunteer leadership and efficient use of funds.
Long history of IRS 990 filings (12 filings), suggesting consistent compliance and transparency in reporting.
Manageable liabilities relative to assets, indicating good financial health.
Spending Breakdown
How American Legion 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 American Legion
Is American Legion a legitimate charity?
Based on AI analysis of IRS 990 filings, American Legion (EIN: 10018930) appears trustworthy. Mission Score: 75/100. 1 red flag identified, 4 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 75/100. Revenue: $1.9M. Assets: $2.0M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for American Legion?
The Employer Identification Number (EIN) for American Legion is 10018930. 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 Legion spend its money?
American Legion allocates 70% to programs, 20% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify American Legion's tax-exempt status?
You can verify American Legion's tax-exempt status using EIN 10018930 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 Legion in Winslow, ME, demonstrates consistent financial activity over the past decade, with annual revenues generally fluctuating between $700,000 and $1,050,000. The organization's assets have shown a gradual increase, reaching $1,144,748 in 2023, indicating stable growth. A notable aspect of their financial management is the reported 0% officer compensation across all available filings, suggesting a volunteer-driven leadership structure, which can be a positive indicator for donor confidence regarding administrative efficiency.
However, the provided data lacks a detailed breakdown of expenses into program, administrative, and fundraising categories, making a precise assessment of spending efficiency challenging. While the organization consistently reports expenses close to or sometimes exceeding revenue (e.g., $951,605 expenses vs. $887,494 revenue in 2023), this could be due to various factors not discernible from the summary data, such as strategic investments or timing differences in revenue recognition. Without a functional expense breakdown, it's difficult to definitively evaluate how effectively funds are being directed towards their mission.
Overall, the American Legion appears to be a financially stable organization with growing assets and a commitment to volunteer leadership. To enhance transparency and allow for a more thorough financial health assessment, providing a detailed functional expense statement in future disclosures would be beneficial. The consistent reporting of 0% officer compensation is a strong point, but the absence of granular spending data limits a full understanding of their operational efficiency.