Quick charity verification for American Legion (EIN: 16029182)
Verdict: American Legion shows mixed signals
65/100Mission Score
$143KRevenue
$13KAssets
2Red Flags
3Strengths
Red Flags
Consistent operational deficits in recent years (e.g., $3,784 deficit in 202206).
Declining asset base over the past five years, from $49,780 in 201806 to $13,429 in 202206.
Strengths
Consistent filing of IRS Form 990s, indicating good transparency.
0% officer compensation across all filings, demonstrating volunteer leadership and efficient use of funds for administrative costs.
Low liabilities relative to assets ($956 liabilities vs. $13,429 assets in 202206).
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: 16029182) shows mixed signals. Mission Score: 65/100. 2 red flags identified, 3 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 65/100. Revenue: $143K. Assets: $13K. 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 16029182. 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 16029182 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 Lubec, ME, appears to be a small, community-focused organization with fluctuating financial performance over the past decade. In the most recent filing (202206), the organization reported revenue of $55,543 against expenses of $59,327, indicating a deficit for the period. This trend of expenses exceeding revenue has been common in recent years, with deficits also seen in 202106 ($28,170 revenue vs. $44,922 expenses) and 202006 ($56,811 revenue vs. $66,195 expenses). The organization's assets have also shown a declining trend, from $49,780 in 201806 to $13,429 in 202206, which could raise concerns about long-term financial stability if not addressed. Liabilities remain relatively low, at $956 in 202206, which is a positive sign.
Transparency is generally good given the consistent filing of IRS Form 990s. A key aspect of their financial health is the consistent reporting of 0% officer compensation across all available filings, suggesting that leadership is volunteer-based, which can be a strength for smaller nonprofits in terms of maximizing funds for programs. However, without a detailed breakdown of expenses beyond what's typically available in summary 990 data for smaller organizations, it's challenging to precisely assess spending efficiency between programs, administration, and fundraising. The consistent operational deficits and declining asset base warrant close monitoring.