Quick charity verification for American Legion (EIN: 20276222)
Verdict: American Legion appears trustworthy
90/100Mission Score
$628KRevenue
$447KAssets
0Red Flags
5Strengths
No red flags identified.
Strengths
Consistent operational surpluses across all reported periods (e.g., $4,501 surplus in 202303).
No reported officer compensation, indicating a volunteer-driven leadership and high efficiency.
Decreasing liabilities over time, from $109,787 in 201803 to $71,110 in 202303, showing improved financial health.
Steady growth in assets, from $271,325 in 201803 to $318,134 in 202303.
Transparent financial reporting through consistent IRS 990 filings.
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: 20276222) appears trustworthy. Mission Score: 90/100. 0 red flags identified, 5 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 90/100. Revenue: $628K. Assets: $447K. 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 20276222. 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 20276222 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 Jaffrey, NH, demonstrates a consistent financial profile over the past six years, with revenues generally exceeding expenses, leading to a gradual increase in assets. For instance, in the latest filing (202303), revenue was $222,336 against expenses of $217,835, contributing to assets of $318,134. The organization's liabilities have shown a positive trend, decreasing from $109,787 in 201803 to $71,110 in 202303, indicating improved financial management. The absence of reported officer compensation across all filings suggests a volunteer-driven leadership structure, which is a positive indicator for donor confidence regarding administrative efficiency.
While the provided data doesn't offer a detailed breakdown of program versus administrative spending, the consistent surplus and lack of paid executive compensation imply that a significant portion of funds likely supports its mission. The organization's financial health appears stable, with a healthy asset base relative to its annual revenue. The latest revenue of $627,777 (which appears to be a cumulative or different reporting figure than the individual filing periods) compared to assets of $446,946 suggests a reasonable asset-to-revenue ratio, indicating good stewardship of resources.
Overall, the American Legion in Jaffrey, NH, appears to be a financially stable and efficiently managed organization, particularly given its consistent operational surpluses and the absence of executive compensation. Its transparency is bolstered by the readily available IRS 990 filings, which show a clear financial trajectory and responsible management of liabilities.