Is American Legion Legit?

Strengths

Consistent positive net income in most years, indicating financial health.
Zero officer compensation, maximizing funds for mission-related activities.
Steady growth in assets over the past several years, from $39,575 in 2019 to $91,139 in 2023.
Low liabilities relative to assets, demonstrating strong financial solvency.
Consistent IRS 990 filing history, indicating good transparency and compliance.

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

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: 20242088) 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: $256K. Assets: $114K. 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 20242088. 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 20242088 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 Greenville, NH, demonstrates consistent financial activity over the past decade, with revenues generally exceeding expenses, leading to a steady growth in assets. For instance, in 2023, revenue was $113,132 against expenses of $101,928, contributing to assets of $91,139. The organization appears to be financially stable, maintaining a healthy balance sheet with relatively low liabilities compared to assets. The consistent reporting of 0% officer compensation across all available filings suggests a volunteer-driven leadership structure, which is a positive indicator for donor confidence and efficient use of funds.

While specific program spending ratios are not detailed in the provided summary, the overall financial health, characterized by positive net income in most years and growing assets, suggests effective management of resources. The absence of officer compensation is a significant factor in its spending efficiency, as it reduces overhead costs. However, without a detailed breakdown of expenses into program, administrative, and fundraising categories, a precise assessment of spending efficiency is challenging. The organization's consistent filing of IRS Form 990s over 13 periods indicates a commitment to regulatory compliance and transparency.

Overall, the American Legion in Greenville, NH, appears to be a financially sound organization with a strong commitment to volunteer leadership and consistent financial reporting. Its ability to maintain positive net assets and grow its financial base over time, despite fluctuating revenues, points to prudent financial management. Further analysis would benefit from a detailed breakdown of expenses to fully understand its program delivery efficiency.

Verdict: American Legion appears trustworthy