Is American Legion Legit?

Quick charity verification for American Legion (EIN: 20103730)

Verdict: American Legion appears trustworthy

85/100Mission Score

$3.0MRevenue

$701KAssets

2Red Flags

4Strengths

Red Flags

Lack of detailed expense breakdown in provided data prevents precise program efficiency assessment
Significant discrepancy between 'Latest Revenue' ($2,965,729) and individual filing period revenues (e.g., $268,481 in 202312) requires clarification

Strengths

Consistent 0% officer compensation indicates volunteer leadership and efficient use of funds
Strong asset growth from $368,384 in 202012 to $774,663 in 202312
Low liabilities relative to assets, indicating good financial health (e.g., $6,462 liabilities vs. $774,663 assets in 202312)
Positive net assets in most reported periods

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: 20103730) 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: $3.0M. Assets: $701K. 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 20103730. 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 20103730 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 20103730, demonstrates a generally stable financial position with fluctuating but often positive net assets over the past several years. While the latest reported revenue is $2,965,729, the individual filing periods show much lower figures, suggesting the 'Latest Revenue' might be an aggregate or a different reporting period not fully detailed in the provided filing history. For instance, the 202312 period shows revenue of $268,481 against expenses of $266,879, indicating a very tight margin. The organization consistently reports 0% officer compensation across all provided filings, which is a strong indicator of volunteer leadership and efficient use of funds in that area. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories, a precise assessment of spending efficiency is challenging. The significant increase in assets from $368,384 in 202012 to $774,663 in 202312, alongside relatively low liabilities, suggests good financial management and asset growth.

The organization's financial health appears sound, with assets consistently exceeding liabilities. The revenue figures have shown considerable variability, from $160,696 in 201012 to $465,974 in 202112, and then back down to $268,481 in 202312. This fluctuation could be due to various factors, including fundraising cycles or specific events. The consistent reporting of zero officer compensation is a significant positive for transparency and efficiency. However, the lack of detailed expense categorization in the provided data limits the ability to fully assess program spending efficiency and administrative overhead. To improve transparency, a clearer breakdown of how expenses are allocated would be beneficial.

Overall, the American Legion (EIN 20103730) appears to be a financially responsible organization, particularly given its volunteer leadership. Its asset growth and low liabilities are positive indicators. The primary area for improved transparency would be a more granular breakdown of expenses to allow for a more precise evaluation of program efficiency versus administrative and fundraising costs.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.