Quick charity verification for American Legion (EIN: 20225721)
Verdict: American Legion appears trustworthy
90/100Mission Score
$520KRevenue
$455KAssets
1Red Flags
5Strengths
Red Flags
NTEE Code is unknown, which limits detailed programmatic analysis.
Strengths
Consistent revenue growth over a decade, from $266,152 in 2014 to $290,649 in 2023.
Strong asset accumulation, increasing from $206,037 in 2014 to $465,199 in 2023.
Zero reported officer compensation across all filings, indicating high efficiency in directing funds to mission.
Very low liabilities relative to assets, demonstrating strong financial health and low debt.
Consistent surplus generation, with revenue exceeding expenses in most years, contributing to asset growth.
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: 20225721) appears trustworthy. Mission Score: 90/100. 1 red flag identified, 5 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 90/100. Revenue: $520K. Assets: $455K. 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 20225721. 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 20225721 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 Milford, NH demonstrates consistent financial growth and stability over the past decade. Revenue has generally trended upwards, from $266,152 in 2014 to $290,649 in 2023, indicating a healthy ability to attract funds. The organization consistently operates with a surplus, as seen in 2023 where revenue of $290,649 exceeded expenses of $263,825, contributing to a steady increase in assets from $206,037 in 2014 to $465,199 in 2023. This financial prudence suggests effective management of resources.
Spending efficiency appears strong, with a significant portion of expenses likely directed towards program services, given the absence of officer compensation and relatively low liabilities. The organization's liabilities remain very low, peaking at $22,421 in 2023 against assets of $465,199, which is a positive indicator of financial health and low debt burden. The consistent filing of IRS 990 forms over 13 periods demonstrates a commitment to transparency, providing a clear historical record of its financial activities.
Overall, the American Legion in Milford, NH appears to be a financially sound and well-managed organization. Its consistent revenue generation, asset growth, low liabilities, and transparent reporting practices contribute to a positive assessment of its financial health and operational efficiency. The lack of reported officer compensation further suggests that resources are primarily directed towards its mission.