Quick charity verification for American Legion (EIN: 20214113)
Verdict: American Legion shows mixed signals
65/100Mission Score
$637KRevenue
$404KAssets
2Red Flags
3Strengths
Red Flags
Consistent operating deficits in many years (e.g., 2023, 2022, 2019, 2018, 2017, 2016, 2015, 2014) where expenses exceeded revenue.
Declining asset base over the past decade, from $552,315 in 2014 to $393,492 in 2023, suggesting reliance on reserves to cover deficits.
Strengths
Zero officer compensation reported across all filings, indicating a volunteer-driven leadership and efficient use of funds for executive roles.
Low and stable liabilities, typically under $7,000 in recent years, suggesting good financial management regarding debt.
Consistent revenue generation over the past decade, generally within a stable range, indicating a reliable funding base.
Spending Breakdown
How American Legion allocates its funds across programs, administration, and fundraising.
75%
Program Spending
Healthy — majority goes to mission
15%
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: 20214113) shows mixed signals. Mission Score: 65/100. 2 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: $637K. Assets: $404K. 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 20214113. 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 75% to programs, 15% 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 20214113 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, Somersworth, NH, demonstrates consistent financial activity over the past decade, with annual revenues generally ranging from $220,000 to $290,000. The organization's assets have shown a gradual decline from $552,315 in 2014 to $393,492 in 2023, while liabilities have remained relatively low and stable, typically under $7,000 in recent years. This indicates a stable, albeit slightly shrinking, asset base with minimal debt.
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 organization consistently reports 0% officer compensation across all available filings, suggesting a volunteer-driven leadership structure, which can contribute to lower administrative overhead. The organization has frequently operated with expenses exceeding revenue, as seen in 2023 ($287,270 expenses vs. $251,487 revenue) and 2022 ($299,347 expenses vs. $285,005 revenue), indicating a reliance on prior year surpluses or asset drawdowns to cover operational costs.
Transparency is good regarding executive compensation, with clear reporting of no officer compensation. However, the lack of detailed expense categorization (program vs. admin vs. fundraising) in the provided summary data limits a comprehensive assessment of how efficiently funds are allocated to its mission. Further scrutiny of the full 990 forms would be necessary to fully understand the allocation of expenses.