How American Legion allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
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: 20217494) appears trustworthy. Mission Score: 75/100. 1 red flag identified, 4 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 75/100. Revenue: $142K. Assets: $181K. 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 20217494. 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 70% to programs, 20% 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 20217494 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 Lincoln, NH, demonstrates a generally stable financial position with consistent asset growth over the past decade, reaching $191,583 in 2022. Revenue has shown significant fluctuation, with a notable increase to $166,372 in 2022 from $59,365 in 2021, indicating potential variability in funding sources or activities. The organization consistently reports zero liabilities, which is a strong indicator of financial stability and low risk. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories in the provided data, a precise assessment of spending efficiency is challenging.
The absence of reported officer compensation across all filings suggests either a fully volunteer-run leadership or that compensation falls below reporting thresholds, which can be a positive sign for donor confidence regarding executive pay. The organization's consistent filing of IRS Form 990s over 12 periods indicates a commitment to regulatory compliance and basic financial transparency. To further enhance transparency, a more granular breakdown of expenses would be beneficial for stakeholders to understand how funds are allocated across its mission-related activities versus overhead.
Overall, the American Legion appears to be a financially sound organization with a strong balance sheet and a history of compliance. The primary area for improvement in financial analysis is the lack of detailed expense categorization, which limits the ability to fully evaluate program efficiency and the proportion of funds directly supporting its mission.