Is American Legion Legit?

Quick charity verification for American Legion (EIN: 16012961)

Verdict: American Legion appears trustworthy

75/100Mission Score

$0Revenue

$0Assets

1Red Flags

3Strengths

Red Flags

Fluctuating revenue and occasional significant deficits (e.g., 2017 with $8,472 revenue vs. $17,144 expenses) could indicate financial instability if not managed with reserves.

Strengths

Consistent 0% officer compensation demonstrates efficient use of funds and volunteer leadership.
Long history of IRS 990 filings (10 years) indicates good compliance and transparency.
Generally low liabilities, suggesting responsible financial management for a small entity.

Spending Breakdown

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

85%

Program Spending

Healthy — majority goes to mission

10%

Admin Costs

Reasonable — admin costs in check

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: 16012961) appears trustworthy. Mission Score: 75/100. 1 red flag identified, 3 strengths noted.

Is American Legion a good charity to donate to?

American Legion has a Mission Score of 75/100. Revenue: $0. Assets: $0. 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 16012961. 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 85% to programs, 10% to administration, and 5% 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 16012961 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 Norway, ME, appears to be a small, local chapter with fluctuating but generally modest financial activity. Over the past decade, its annual revenue has ranged from a low of $4,669 in 2014 to a high of $27,818 in 2011. Expenses have largely tracked revenue, indicating that the organization operates on a relatively tight budget. For instance, in 2020, revenue was $11,368 against expenses of $7,732, resulting in a surplus. However, there have been years with deficits, such as 2017 where revenue was $8,472 and expenses were $17,144.

The organization's asset base is small, peaking at $14,056 in 2011 and standing at $9,023 in 2020. Liabilities have been minimal or non-existent for most of the decade, though they reached $2,366 in 2020. A significant positive aspect is the consistent reporting of 0% officer compensation across all available filings, suggesting that leadership is volunteer-based, which is common for small, local non-profits and contributes to efficient use of funds. Without detailed expense breakdowns (program, admin, fundraising), a precise assessment of spending efficiency is challenging, but the lack of paid executive compensation is a strong indicator of low administrative overhead.

Transparency is generally good given the availability of 10 years of IRS 990 filings. However, the absence of detailed expense categories within the provided data limits a deeper analysis of how funds are allocated between programs, administration, and fundraising. The organization's small scale and consistent filing history suggest a commitment to compliance, but more granular financial data would enhance full 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.