Quick charity verification for American Legion (EIN: 10376256)
Verdict: American Legion shows mixed signals
45/100Mission Score
$29KRevenue
$233KAssets
4Red Flags
1Strengths
Red Flags
Significant and consistent decline in revenue from $92,730 in 2012 to $28,924 in 2017.
Frequent operating deficits, with expenses exceeding revenue in 4 out of 6 reported years.
Steady decline in total assets from $330,840 in 2012 to $233,357 in 2017.
Substantial liabilities ranging from $100,273 to $122,500 relative to declining assets and revenue.
Strengths
No reported officer compensation, suggesting a volunteer-driven leadership or efficient use of funds in this area.
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: 10376256) shows mixed signals. Mission Score: 45/100. 4 red flags identified, 1 strength noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 45/100. Revenue: $29K. Assets: $233K. 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 10376256. 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 10376256 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 Trenton, ME, demonstrates a concerning trend in its financial health. While its latest reported revenue for 2017 was $28,924, this represents a significant decline from $92,730 in 2012. Expenses have also decreased, from $113,032 in 2012 to $23,835 in 2017, but the organization has frequently operated at a deficit, with expenses exceeding revenue in four of the six reported periods. For instance, in 2016, expenses of $36,577 significantly outstripped revenue of $19,034.
The organization's assets have steadily declined from $330,840 in 2012 to $233,357 in 2017, while liabilities have remained substantial, ranging from $100,273 to $122,500. This indicates a weakening financial position. The lack of reported officer compensation across all periods suggests either a fully volunteer-run leadership or that compensation falls below reporting thresholds, which can be a positive for efficiency but doesn't fully offset the broader financial challenges. Without a detailed breakdown of program, administrative, and fundraising expenses, it's difficult to fully assess spending efficiency, but the consistent operating deficits are a major concern for long-term sustainability.