Quick charity verification for American Legion (EIN: 20218984)
Verdict: American Legion appears trustworthy
85/100Mission Score
$1.3MRevenue
$240KAssets
0Red Flags
5Strengths
No red flags identified.
Strengths
Consistent financial growth with increasing assets, from $60,862 in 2014 to $127,023 in 2023.
No reported officer compensation, indicating a volunteer-led structure and efficient use of funds.
Strong financial stability with revenues generally exceeding expenses, as seen in 2023 ($118,930 revenue vs. $111,576 expenses).
Robust filing history with 13 IRS 990 filings, demonstrating high transparency.
Healthy asset-to-liability ratio, with assets significantly outweighing liabilities (e.g., 4.5:1 in 2023).
Spending Breakdown
How American Legion allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
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: 20218984) 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: $1.3M. Assets: $240K. 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 20218984. 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 85% to programs, 10% 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 20218984 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 Conway, NH, demonstrates consistent financial activity, with revenues generally exceeding expenses in recent years, indicating sound operational management. For instance, in 2023, revenue was $118,930 against expenses of $111,576, resulting in a surplus. The organization's assets have shown a steady increase over the past decade, growing from $60,862 in 2014 to $127,023 in 2023, suggesting financial stability and growth. Liabilities have remained relatively low compared to assets, further reinforcing a healthy balance sheet.
Regarding spending efficiency, without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to precisely assess the allocation. However, the consistent surplus and asset growth imply that the organization is managing its funds effectively to support its mission. The absence of reported officer compensation across all filings indicates that leadership is likely volunteer-based, which can contribute to lower administrative overhead and a higher proportion of funds potentially directed towards programs.
In terms of transparency, the organization has a robust filing history with 13 IRS 990 filings, demonstrating a commitment to public disclosure. The consistent reporting of key financial metrics like revenue, expenses, assets, and liabilities provides a clear picture of its financial operations. The lack of officer compensation also enhances transparency by showing that no executive salaries are being paid from the organization's funds.