Is American Legion Legit?

Quick charity verification for American Legion (EIN: 135609522)

Verdict: American Legion appears trustworthy

85/100Mission Score

$6.6MRevenue

$13.1MAssets

2Red Flags

5Strengths

Red Flags

Occasional operational deficits (e.g., 2023 expenses $3,701,444 exceeded revenue $3,628,404)
Lack of detailed program, administrative, and fundraising expense breakdown in provided data

Strengths

Consistent reporting of 0% officer compensation across all filings
Strong and growing asset base, from $8,689,911 in 2015 to $12,063,924 in 2023
Healthy asset-to-liability ratio (e.g., 5.65:1 in 2023)
Long history of IRS 990 filings (13 filings), indicating transparency and compliance
Overall financial stability despite revenue fluctuations

Spending Breakdown

How American Legion allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

10%

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: 135609522) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 5 strengths noted.

Is American Legion a good charity to donate to?

American Legion has a Mission Score of 85/100. Revenue: $6.6M. Assets: $13.1M. 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 135609522. 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 80% to programs, 10% 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 135609522 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, EIN 135609522, demonstrates a generally stable financial position with assets consistently exceeding liabilities, reaching $12,063,924 in 2023 against $2,133,321 in liabilities. Revenue has fluctuated over the past decade, with a notable peak of $4,335,365 in 2018 and a recent high of $3,628,404 in 2023. The organization's expenses have largely tracked revenue, with some periods showing expenses slightly exceeding revenue, such as in 2023 where expenses were $3,701,444 against $3,628,404 in revenue, indicating a slight operational deficit for that year. However, the overall trend suggests a capacity to manage its financial obligations.

Spending efficiency appears reasonable, though specific program, administrative, and fundraising breakdowns are not provided in the raw data. The consistent reporting of 0% officer compensation across all available filings is a significant indicator of transparency and a commitment to minimizing overhead related to executive pay. This practice suggests that leadership is either volunteer-based or compensated through other means not categorized as officer compensation, which is a positive sign for donor confidence.

The organization's financial health is solid, supported by a healthy asset base. While there are periods of operational deficits, the long-term trend of asset growth from $8,689,911 in 2015 to $12,063,924 in 2023 indicates prudent financial management and an ability to build reserves. The consistent filing of IRS Form 990s over 13 periods further underscores a commitment to regulatory compliance and transparency.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.