Is American Legion Legit?

Quick charity verification for American Legion (EIN: 20208444)

Verdict: American Legion appears trustworthy

75/100Mission Score

$2.5MRevenue

$638KAssets

2Red Flags

4Strengths

Red Flags

Consistent operating deficits in recent years (e.g., 202312, 202212, 202112, 201912, 201812, 201712, 201612), indicating expenses frequently exceed revenue.
Lack of detailed expense breakdown (program, admin, fundraising) in the provided data makes it difficult to fully assess spending efficiency.

Strengths

Consistent reporting of 0% officer compensation across all filings, suggesting volunteer leadership and low executive overhead.
Long history of IRS 990 filings (13 filings), indicating transparency and compliance.
Low liabilities consistently reported (e.g., $38,156 in 202312), demonstrating good debt management.
Stable asset base over the past decade, indicating financial resilience.

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: 20208444) 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: $2.5M. Assets: $638K. 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 20208444. 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 20208444 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 20208444, operating in Concord, NH, demonstrates a consistent financial pattern over the past decade. While its latest reported revenue is $2,450,441, the individual annual filings show revenues typically in the range of $250,000 to $400,000, with expenses often closely matching or slightly exceeding revenue, as seen in 202312 (Revenue $269,462, Expenses $307,832) and 202212 (Revenue $255,231, Expenses $306,296). This suggests a tight operational budget with limited surplus generation in most years. The organization's assets have fluctuated, peaking around $773,022 in 202112 and currently standing at $637,761, indicating a stable but not rapidly growing asset base.

The organization's spending efficiency is difficult to fully assess without a detailed breakdown of program, administrative, and fundraising expenses, which are not provided in the summary data. However, the consistent reporting of 0% officer compensation across all available filings suggests a volunteer-driven leadership, which can be a positive indicator of efficiency by minimizing overhead related to executive salaries. The liabilities have generally remained low, indicating good financial management in terms of debt.

Transparency appears to be adequate given the availability of 13 years of IRS 990 filings. The consistent reporting of key financial metrics, including revenue, expenses, assets, liabilities, and officer compensation, allows for a basic level of financial scrutiny. However, without more granular expense categories, a deeper analysis of program effectiveness and administrative burden is limited. The organization's financial health appears stable, though it operates with relatively thin margins in many years.

View Full Transparency Report →

Disclaimer

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