Quick charity verification for American Legion (EIN: 16038550)
Verdict: American Legion appears trustworthy
75/100Mission Score
$86KRevenue
$107KAssets
2Red Flags
4Strengths
Red Flags
Lack of detailed expense breakdown (program vs. admin vs. fundraising) in provided summary data, making precise efficiency analysis difficult.
Multiple years where expenses exceeded revenue (e.g., 2022, 2018, 2017, 2016, 2015, 2014) could indicate reliance on reserves or non-operating income to cover shortfalls.
Strengths
Consistent reporting of 0% officer compensation, indicating volunteer leadership and efficient use of funds.
Long history of consistent IRS 990 filings (13 filings), demonstrating good transparency.
Maintains positive net assets, indicating financial stability despite revenue fluctuations (e.g., $94,340 assets in 2023 vs. $18,111 liabilities).
Assets have shown modest growth in recent years, from $79,012 in 2019 to $94,340 in 2023.
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: 16038550) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 4 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 75/100. Revenue: $86K. Assets: $107K. 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 16038550. 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 16038550 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 Millinocket, ME, demonstrates consistent financial activity typical of a small, local veteran's organization. Its revenue and expenses have fluctuated over the past decade, with recent years showing a slight decrease in overall activity compared to earlier periods (e.g., $47,855 revenue in 2023 vs. $103,729 in 2015). The organization consistently reports zero officer compensation, which is a positive indicator of volunteer leadership and efficient use of funds for its mission. Assets have shown modest growth in recent years, reaching $94,340 in 2023, indicating some financial stability.
While specific program spending details are not provided in the summary data, the absence of paid executive compensation suggests that a significant portion of its operational budget likely supports its core activities and community engagement. The organization's financial health appears stable for its size, maintaining positive net assets despite some years where expenses exceeded revenue (e.g., 2022, 2018, 2017, 2016, 2015, 2014). This suggests reliance on accumulated reserves or other non-operating income to cover shortfalls in those periods.
Transparency is generally good, as evidenced by consistent IRS 990 filings over 13 periods. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories, a precise assessment of spending efficiency is challenging. The consistent reporting of zero officer compensation is a strong point for transparency regarding leadership costs.