Quick charity verification for American Legion (EIN: 20229923)
Verdict: American Legion appears trustworthy
85/100Mission Score
$1.8MRevenue
$1.0MAssets
2Red Flags
4Strengths
Red Flags
Lack of detailed program, administrative, and fundraising expense breakdown in provided data
NTEE code is unknown, hindering peer comparison
Strengths
Consistent asset growth, from $430,923 in 2019 to $860,228 in 2023
Significant reduction in liabilities, from $351,211 in 2014 to $46,653 in 2023
Consistent 0% officer compensation across all filings
Healthy surplus in recent years (e.g., $762,000 revenue vs. $585,203 expenses in 2023)
Spending Breakdown
How American Legion allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
10%
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: 20229923) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 4 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 85/100. Revenue: $1.8M. Assets: $1.0M. 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 20229923. 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, 10% 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 20229923 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 Rochester, NH, demonstrates a generally stable financial position with consistent revenue streams over the past decade. While the latest reported revenue of $1,789,387 is significantly higher than previous years, the most recent detailed filing (202312) shows revenue of $762,000 against expenses of $585,203, indicating a healthy surplus. The organization has shown consistent growth in assets, from $430,923 in 2019 to $860,228 in 2023, suggesting prudent financial management and accumulation of resources. Liabilities have also seen a positive trend, decreasing from a high of $351,211 in 2014 to $46,653 in 2023, which is a strong indicator of financial health and reduced debt burden.
Spending efficiency appears reasonable, with expenses generally below or close to revenue in most recent years, allowing for asset growth. The consistent reporting of 0% officer compensation across all available filings is a significant positive for transparency and indicates that leadership is likely volunteer-based, which can lead to more funds being directed towards the mission. However, without a detailed breakdown of program, administrative, and fundraising expenses, a precise assessment of spending efficiency is challenging. The lack of an NTEE code also makes it difficult to benchmark against similar organizations.
Overall, the organization exhibits good financial health with growing assets and decreasing liabilities. The transparency regarding officer compensation is commendable. Further detailed expense breakdowns would enhance the assessment of spending efficiency and program impact.