Is American Legion Legit?

Strengths

Consistent asset growth from $86,470 in 2015 to $247,420 in 2023.
Zero reported officer compensation across all filings, indicating high efficiency.
Low liabilities relative to assets, demonstrating strong financial health.
Consistent positive net income in most years, showing sound financial management.
Excellent transparency with nine years of available 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

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: 20791781) 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: $321K. Assets: $264K. 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 20791781. 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 20791781 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 Rogers, AR, demonstrates consistent financial stability over the past nine years, with assets steadily growing from $86,470 in 2015 to $247,420 in 2023. The organization's revenue has fluctuated, with a high of $96,415 in 2015 and a low of $40,666 in 2020, but generally maintains a positive net income, indicating sound financial management. For instance, in 2023, revenue was $62,160 against expenses of $51,875, resulting in a surplus.

Spending efficiency appears to be strong, particularly given the consistent reporting of 0% officer compensation across all filings, suggesting that the organization is run by volunteers or that compensation is below reporting thresholds. This indicates a high proportion of funds are likely directed towards program services and operational costs rather than executive salaries. The organization's liabilities remain very low relative to its assets, further reinforcing its financial health.

Transparency is excellent, with nine years of consistent IRS 990 filings available. The absence of reported officer compensation simplifies the analysis of how funds are allocated, though a detailed breakdown of program vs. administrative vs. fundraising expenses is not explicitly provided in the summary data. However, the overall financial picture suggests a well-managed and fiscally responsible entity.

Verdict: American Legion appears trustworthy