Quick charity verification for American Legion (EIN: 16018651)
Verdict: American Legion appears trustworthy
75/100Mission Score
$279KRevenue
$56KAssets
2Red Flags
3Strengths
Red Flags
Significant decline in assets from $171,247 in 2019 to $30,158 in 2023, representing an 82% decrease.
Lack of detailed functional expense breakdown (program, admin, fundraising) in the provided summary, making precise spending efficiency analysis difficult.
Strengths
Consistent 0% officer compensation, indicating a volunteer-led organization and efficient use of funds.
Long operating history with 13 filings, suggesting stability and commitment to its mission.
Low liabilities, often reported as $0, indicating sound financial management in terms of debt.
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
5%
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: 16018651) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 75/100. Revenue: $279K. Assets: $56K. 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 16018651. 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 16018651 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 16018651, operating in Greenwood, ME, demonstrates a consistent pattern of low revenue and expenses, typical for a small, local volunteer-driven organization. Its financial health appears stable, with assets generally exceeding liabilities, though there was a notable decrease in assets from $171,247 in 2019 to $30,158 in 2023, which warrants further investigation. The organization consistently reports 0% officer compensation, indicating a volunteer leadership structure, which is a positive sign for donor confidence and efficient use of funds.
Spending efficiency is difficult to precisely determine without a detailed functional expense breakdown (program, administrative, fundraising) in the provided data. However, the consistent reporting of zero officer compensation suggests that a significant portion of its operational costs are likely directed towards its mission. The organization's transparency is high in terms of executive compensation, as it clearly states no compensation is paid to officers. Further transparency could be enhanced by providing a more granular breakdown of expenses.
Overall, while the organization's financial scale is modest, its commitment to volunteer leadership and low overhead (as implied by 0% officer compensation) are positive indicators. The significant drop in assets over recent years, from a peak of $174,319 in 2017 to $30,158 in 2023, is a key area for potential concern and further inquiry, as it represents a substantial reduction in its financial reserves.