Quick charity verification for American Legion (EIN: 16019452)
Verdict: American Legion appears trustworthy
85/100Mission Score
$303KRevenue
$256KAssets
1Red Flags
4Strengths
Red Flags
Slight deficit in the most recent fiscal period (2023), with expenses ($250,488) exceeding revenue ($239,095).
Strengths
Consistent record of zero liabilities across all 13 filings, indicating strong financial health.
Long-term asset growth, from $169,078 in 2014 to $246,977 in 2023.
0% officer compensation reported in all filings, suggesting highly efficient and likely volunteer-driven leadership.
Consistent filing history (13 filings) demonstrating strong transparency and accountability.
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
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: 16019452) appears trustworthy. Mission Score: 85/100. 1 red flag identified, 4 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 85/100. Revenue: $303K. Assets: $256K. 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 16019452. 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 16019452 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 Scarborough, ME, demonstrates a consistent operational pattern with revenues generally exceeding or closely matching expenses over the past decade, indicating stable financial management. For instance, in 2022, revenue was $139,836 against expenses of $91,245, resulting in a surplus. However, the most recent filing (2023) shows expenses of $250,488 slightly exceeding revenues of $239,095, leading to a minor deficit. The organization consistently reports zero liabilities, which is a strong indicator of financial health and low risk. Assets have shown a general upward trend over the long term, from $169,078 in 2014 to $246,977 in 2023, suggesting prudent asset management.
Spending efficiency appears reasonable given the nature of a local veteran's organization, though specific program spending details are not provided in the summary data. The consistent reporting of 0% officer compensation across all filings suggests that leadership is likely volunteer-based or compensated through non-officer roles, which can contribute to lower administrative overhead. Transparency is good, with a consistent filing history of 13 IRS 990 forms, allowing for a clear view of financial trends over time. The absence of liabilities further simplifies financial analysis and indicates a straightforward financial structure.
Overall, the American Legion in Scarborough, ME, appears to be a financially stable and transparent organization, effectively managing its resources to support its mission. While the recent slight deficit in 2023 warrants monitoring, the long-term trend of asset growth and zero liabilities are positive indicators. The lack of officer compensation is a notable strength, suggesting a high dedication to mission over personal gain.