Quick charity verification for American Legion (EIN: 20210741)
Verdict: American Legion appears trustworthy
85/100Mission Score
$656KRevenue
$556KAssets
0Red Flags
5Strengths
No red flags identified.
Strengths
Consistent revenue generation and expense management, as seen in 202312 with $246,911 revenue and $233,055 expenses.
Steady asset growth over the past decade, increasing from $351,348 in 201412 to $509,159 in 202312.
Extremely low liabilities across most filing periods, indicating strong financial solvency.
No reported officer compensation, suggesting a volunteer-driven leadership and efficient use of funds.
Consistent IRS 990 filing history, demonstrating transparency and compliance.
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: 20210741) appears trustworthy. Mission Score: 85/100. 0 red flags identified, 5 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 85/100. Revenue: $656K. Assets: $556K. 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 20210741. 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 20210741 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: 20210741) in Claremont, NH, demonstrates consistent financial operations, with recent revenues in the range of $246,911 to $288,590 and expenses closely aligned, as seen in the 202312 filing where revenue was $246,911 and expenses were $233,055. The organization has shown steady asset growth, reaching $509,159 in 202312 from $351,348 in 201412, indicating sound financial management and accumulation of resources. Liabilities have remained very low across most periods, suggesting a healthy balance sheet and minimal debt burden.
The organization's spending efficiency appears reasonable given the close proximity of revenues and expenses, implying that most incoming funds are utilized for operations. While specific program spending ratios are not detailed in the provided data, the consistent operational activity and asset growth suggest a stable financial foundation. The absence of reported officer compensation across all filings indicates a volunteer-driven leadership structure, which can contribute to lower administrative overhead and potentially higher program efficiency.
Transparency is generally good, with 13 filings available, demonstrating a consistent reporting history to the IRS. The lack of officer compensation is a positive indicator for public trust, as it suggests resources are not being diverted to high executive salaries. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories, a complete assessment of spending efficiency and program focus is challenging.