Is American Legion Legit?

Spending Breakdown

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

80%

Program Spending

Healthy — majority goes to mission

15%

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: 16017237) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.

Is American Legion a good charity to donate to?

American Legion has a Mission Score of 85/100. Revenue: $350K. Assets: $418K. 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 16017237. 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, 15% 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 16017237 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 Richmond, ME, demonstrates consistent financial stability with assets generally exceeding liabilities, often reporting zero liabilities in recent years. While revenue has fluctuated, ranging from a low of $15,323 in 2021 to a high of $75,957 in 2022, the organization has maintained a healthy asset base, currently at $418,107. The absence of reported officer compensation across all available filings indicates a volunteer-driven leadership, which is a strong positive for donor confidence and efficiency. However, without detailed expense breakdowns beyond total expenses, it's challenging to fully assess spending efficiency between program, administrative, and fundraising costs.

The organization's financial operations appear to be managed prudently, with expenses generally aligning with or slightly exceeding revenue in some periods, suggesting a focus on utilizing funds rather than accumulating excessive reserves. For instance, in 2024, expenses ($51,220) slightly surpassed revenue ($48,718). The consistent reporting of zero officer compensation is a significant indicator of transparency and a commitment to directing funds towards the mission. To further enhance transparency, providing a more granular breakdown of expenses would allow for a clearer understanding of how funds are allocated across different activities.

Verdict: American Legion appears trustworthy

Red Flags

Strengths