Is American Legion Legit?

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: 20257350) appears trustworthy. Mission Score: 85/100. 0 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: $516K. Assets: $948K. 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 20257350. 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 20257350 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 Hillsboro, NH, demonstrates consistent financial activity with revenues generally exceeding or closely matching expenses over the past decade. For instance, in 2023, expenses of $323,641 slightly surpassed revenues of $318,582, indicating a minor operational deficit for that year. However, the organization maintains a healthy asset base, with assets consistently near or above $900,000, reaching $948,040 in 2023, significantly outweighing liabilities which were $217,481 in the same period. This suggests a stable financial position despite year-to-year fluctuations in operational surplus or deficit.

The organization's transparency is bolstered by its consistent filing of IRS Form 990s, with 12 filings available, indicating a commitment to public disclosure. A notable aspect of its financial management is the reported 0% officer compensation across all available filings. This suggests that the organization's leadership is either entirely volunteer-based or compensated through other means not categorized as officer compensation on the 990, which can be a positive indicator of resource allocation directly to mission-related activities. Without detailed expense breakdowns, it's challenging to fully assess spending efficiency, but the absence of officer compensation is a strong positive.

Overall, the American Legion in Hillsboro appears to be a financially stable organization with a strong asset base and a transparent approach to its financial reporting, particularly regarding executive compensation. Its ability to maintain assets while managing fluctuating revenues and expenses points to prudent financial stewardship. Further analysis would benefit from detailed program, administrative, and fundraising expense breakdowns, which are not provided in the summary data.

Verdict: American Legion appears trustworthy

Strengths