Is American Legion Legit?

Quick charity verification for American Legion (EIN: 201360036)

Verdict: American Legion shows mixed signals

65/100Mission Score
$359KRevenue
$67KAssets
3Red Flags
3Strengths

Red Flags

Strengths

Spending Breakdown

How American Legion allocates its funds across programs, administration, and fundraising.

80%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
10%
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: 201360036) shows mixed signals. Mission Score: 65/100. 3 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: $359K. Assets: $67K. 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 201360036. 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, 10% to administration, and 10% 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 201360036 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 Fairfield, AL, exhibits inconsistent financial health based on its IRS 990 filings. While the organization reported significant revenue in some periods, such as $455,406 in 2020 and $338,207 in 2022, its assets have fluctuated considerably, from a high of $300,828 in 2022 to a low of $20,114 in 2015, and currently stand at $66,734. The organization's expenses have also varied widely, sometimes exceeding revenue, as seen in 2015 ($20,252 revenue vs. $49,761 expenses) and 2011 ($179,437 revenue vs. $200,830 expenses). This suggests potential challenges in consistent financial management or reliance on fluctuating income streams. Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses, it's difficult to fully assess. However, the consistent reporting of 0% officer compensation across all available filings indicates a commitment to minimizing overhead in this specific area, which is a positive sign for donor confidence. The organization's liabilities have also shown significant swings, from $60,085 in 2015 to $0 in 2022, and currently $18,203, indicating periods of higher financial strain. The lack of detailed expense categorization in the provided data limits a comprehensive assessment of spending efficiency beyond executive compensation. Transparency is moderately good given the availability of multiple years of 990 filings, allowing for historical trend analysis. However, the absence of NTEE code and detailed expense breakdowns (beyond officer compensation) in the provided summary limits a deeper understanding of its operational focus and how its revenue is allocated across different activities. The consistent reporting of 0% officer compensation is a strong point for transparency in executive pay.

View Full Transparency Report →

Disclaimer

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

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