Quick charity verification for American Legion (EIN: 222659784)
Verdict: American Legion shows mixed signals
65/100Mission Score
$314KRevenue
$402KAssets
3Red Flags
3Strengths
Red Flags
Total revenue has shown a significant decline from $182,741 in 2017 to $136,967 in 2022, indicating potential sustainability challenges.
Total assets have steadily decreased from $481,529 in 2017 to $413,267 in 2022, eroding the organization's financial base.
The consistent reporting of 0% compensation for all key personnel might mask indirect benefits or raise questions about the true cost of leadership if not fully volunteer-run.
Strengths
Consistent reporting of financial data through IRS Form 990-EZ provides a basic level of transparency.
The organization maintains a positive net asset position, even with declining trends, indicating some financial stability.
A long operational history (implied by 'American Legion Post') suggests community embeddedness and established purpose.
Spending Breakdown
How American Legion allocates its funds across programs, administration, and fundraising.
70%
Program Spending
Below average — room for improvement
20%
Admin Costs
Reasonable — admin costs in check
10%
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: 222659784) shows mixed signals. Mission Score: 65/100. 3 red flags identified, 3 strengths noted.
Is American Legion a good charity to donate to?
American Legion has a Mission Score of 65/100. Revenue: $314K. Assets: $402K. 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 222659784. 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 70% to programs, 20% to administration, and 10% 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 222659784 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
American Legion is a unknown nonprofit based in Union Beach, New Jersey, with reported revenue of $314K and assets of $402K. Our AI analysis assigns a Mission Score of 65/100 (Good). Approximately 70% of spending goes to programs, 20% to administration, and 10% to fundraising. • Financial data is consistently reported on IRS Form 990-EZ, indicating a smaller organization.
• The organization consistently reports 0% compensation for officers, directors, trustees, and key employees, which may suggest volunteer leadership or compensation below reporting thresholds.
• Detailed program service accomplishments and related expenses are not extensively detailed in the provided summaries, making a deeper programmatic impact assessment challenging. The organization consistently reports $0 in compensation for all officers, directors, trustees, and key employees across all available filings, suggesting a fully volunteer-led executive structure or compensation below IRS reporting thresholds. Revenue has grown +237% across 10 filing periods.