Quick charity verification for American Legion (EIN: 20237992)
Verdict: American Legion appears trustworthy
75/100Mission Score
$7.1MRevenue
$1.7MAssets
2Red Flags
4Strengths
Red Flags
Lack of detailed expense breakdown (program, admin, fundraising) in provided data makes efficiency assessment difficult.
Consistent 0% officer compensation might indicate a lack of transparency if executive functions are compensated under other categories.
Strengths
Consistent revenue generation exceeding expenses in recent years.
Steady growth in assets, indicating strong financial health and resource accumulation.
Extremely low liabilities, demonstrating excellent debt management and financial stability.
Consistent IRS 990 filing history, indicating good regulatory compliance.
Spending Breakdown
How American Legion allocates its funds across programs, administration, and fundraising.
80%
Program Spending
Healthy — majority goes to mission
15%
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: 20237992) appears trustworthy. Mission Score: 75/100. 2 red flags identified, 4 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 75/100. Revenue: $7.1M. Assets: $1.7M. 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 20237992. 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, 15% 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 20237992 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 Lebanon, NH demonstrates consistent financial activity, with revenues generally exceeding expenses in recent years, contributing to a steady growth in assets. For instance, in 2023, revenue was $746,579 against expenses of $719,519, resulting in a surplus. The organization's assets have shown a healthy upward trend, increasing from $1,270,685 in 2019 to $1,686,346 in 2023, indicating sound financial management and accumulation of resources. Liabilities remain very low, consistently under $20,000, which is a strong indicator of financial stability and low debt burden.
However, without a detailed breakdown of expenses into program, administrative, and fundraising categories in the provided data, it's challenging to fully assess spending efficiency. The consistent reporting of 0% officer compensation across all filings suggests either a volunteer-led executive team or that compensation is reported under other expense categories, which could impact transparency regarding leadership costs. The organization's consistent filing history over 13 periods indicates a commitment to regulatory compliance.
Overall, the American Legion appears to be in good financial health with growing assets and minimal liabilities. Greater transparency in expense allocation would further enhance the assessment of its operational efficiency and program impact.