American Legal Finance Association Inc
American Legal Finance Association Inc. experiences fluctuating financial performance with recent deficit spending.
EIN: 201402214 · Washington, DC · NTEE: S41 · Updated: 2026-03-28
| Metric | Value |
|---|---|
| Total Revenue | $1.5M |
| Total Expenses | $1.6M |
| Program Spending | 75% |
| CEO/Top Officer Pay | $1 |
| Net Assets | $421K |
| Transparency Score | 70/100 |
Is American Legal Finance Association Inc Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
American Legal Finance Association Inc directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About American Legal Finance Association Inc
American Legal Finance Association Inc (EIN: 201402214) is a nonprofit organization based in Washington, DC, classified under NTEE code S41. The organization reported total revenue of $1.5M and total assets of $572K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of American Legal Finance Association Inc's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
American Legal Finance Association Inc is a mid-size nonprofit that has been operating for 20 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of 6.5%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $1.4M |
| Total Expenses | $1.6M |
| Surplus / Deficit | $-247,112 |
| Total Assets | $590K |
| Total Liabilities | $169K |
| Net Assets | $421K |
| Operating Margin | -17.7% |
| Debt-to-Asset Ratio | 28.6% |
| Months of Reserves | 4.3 months |
Financial Health Grade: B
In 2023, American Legal Finance Association Inc reported a deficit of $247K with expenses exceeding revenue, holds 4.3 months of operating reserves (adequate), has a debt-to-asset ratio of 28.6% (moderate leverage).
Financial Trends
Over 13 years of filings (2011–2023), American Legal Finance Association Inc's revenue has grown at a compound annual growth rate (CAGR) of 6.5%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -1.4% | +33.5% | -28.5% |
| 2022 | +18.9% | +44.5% | +0.9% |
| 2021 | -4.1% | -20.9% | +71.0% |
| 2020 | -6.9% | -28.1% | +48.0% |
| 2019 | -0.6% | +18.4% | -32.3% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 2006 |
Classification data from ProPublica Nonprofit Explorer. Additional BMF data may be available after enrichment.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates American Legal Finance Association Inc with a Mission Score of 70 out of 100 (Good). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 15%
- programs: 75%
- fundraising: 10%
According to IRS 990 filings, American Legal Finance Association Inc allocates its expenses as follows: admin: 15%, programs: 75%, fundraising: 10%. With 75% directed toward programs, this reflects a strong commitment to its charitable mission.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $247K, with expenses exceeding revenue.
- Debt-to-asset ratio: 28.6%.
Executive Compensation Analysis
Executive compensation is consistently reported as 0% across all available filings, indicating that no officers receive compensation, which is highly unusual for an organization with over $1 million in annual revenue and suggests a volunteer-led or externally funded leadership structure.
Executive compensation data is sourced from IRS 990 filings, which require nonprofits to disclose the compensation of officers, directors, trustees, and key employees. NonprofitSpending analyzes this data relative to the organization's total revenue and sector benchmarks to assess whether executive pay is reasonable.
Red Flags
The following concerns were identified during AI analysis of American Legal Finance Association Inc's IRS 990 filings:
- Significant deficit spending in 2023 ($247,112)
- Notable increase in liabilities in 2023 to $168,991
- Fluctuating asset base, decreasing from $824,976 in 2022 to $589,959 in 2023
Strengths
The following positive indicators were identified for American Legal Finance Association Inc:
- Consistent revenue generation exceeding $1 million annually
- 0% reported officer compensation across all filings, indicating lean executive overhead
- Consistent IRS 990 filing history demonstrating transparency
- Strong asset growth in prior years (e.g., 2021-2022)
Frequently Asked Questions about American Legal Finance Association Inc
Is American Legal Finance Association Inc a legitimate charity?
American Legal Finance Association Inc (EIN: 201402214) is a registered tax-exempt nonprofit based in Washington DC. Our AI analysis gives it a Mission Score of 70/100. It has 13 years of IRS 990 filings on record. Total revenue: $1.5M. 3 red flags identified. 4 strengths noted. Financial health grade: B.
How does American Legal Finance Association Inc spend its money?
American Legal Finance Association Inc directs 75% of its spending to programs and services. Fundraising costs 10%. This exceeds the 65% industry benchmark.
Are donations to American Legal Finance Association Inc tax-deductible?
American Legal Finance Association Inc is registered as a tax-exempt nonprofit (EIN: 201402214). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How much does the American Legal Finance Association Inc CEO make?
American Legal Finance Association Inc's highest-compensated officer earns $1 annually. The organization reported $1.5M in total revenue. Executive compensation data is disclosed in IRS 990 filings.
What percentage of American Legal Finance Association Inc's spending goes to programs?
American Legal Finance Association Inc directs 75% to programs, 10% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
How does American Legal Finance Association Inc compare to similar nonprofits?
With a transparency score of 70/100 (Good), American Legal Finance Association Inc is above average for NTEE category S41 nonprofits. The score reflects financial transparency, program spending efficiency, and governance quality based on IRS 990 data.
Where is American Legal Finance Association Inc located?
American Legal Finance Association Inc is headquartered in Washington, Washington DC and files with the IRS under EIN 201402214. It is classified under NTEE code S41.
How many years of IRS 990 filings does American Legal Finance Association Inc have?
American Legal Finance Association Inc has 13 years of IRS 990 filings on record at NonprofitSpending. This extensive filing history provides a strong basis for evaluating long-term financial trends. The most recent filing shows $1.5M in total revenue.
What caused the significant increase in liabilities to $168,991 in 2023?
The provided data does not specify the nature of the liabilities, but this increase from $51,000 in 2022 warrants further investigation to understand its impact on the organization's financial stability.
How does ALFA manage to operate with 0% officer compensation given its revenue size?
The consistent reporting of 0% officer compensation suggests that leadership roles may be filled by volunteers, or compensation is covered by an external entity, which is a unique operational model for an organization of this scale.
What is the detailed functional expense breakdown for program, administrative, and fundraising costs?
The provided summary data does not offer a detailed functional expense breakdown, making it challenging to precisely evaluate spending efficiency across different categories.
What led to the deficit of over $247,000 in the 2023 period (Expenses $1,644,816 vs. Revenue $1,397,704)?
The data indicates that expenses significantly exceeded revenue in 2023, leading to a substantial deficit. Further analysis of the 990 form would be needed to identify the specific expense categories that increased or revenue streams that decreased.
Filing History
IRS 990 filing history for American Legal Finance Association Inc showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), American Legal Finance Association Inc's revenue has grown by 112.3%, moving from $658K to $1.4M. Total assets increased by 148.4% over the same period, from $237K to $590K. Total functional expenses rose by 211.2%, from $528K to $1.6M. In its most recent filing year (2023), American Legal Finance Association Inc reported a deficit of $247K, with expenses exceeding revenue. The organization holds $169K in liabilities against $590K in assets (debt-to-asset ratio: 28.6%), resulting in net assets of $421K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $1.4M | $1.6M | $590K | $169K | — | View 990 |
| 2022 | $1.4M | $1.2M | $825K | $51K | — | View 990 |
| 2021 | $1.2M | $853K | $817K | $0 | — | View 990 |
| 2020 | $1.2M | $1.1M | $478K | $0 | — | View 990 |
| 2019 | $1.3M | $1.5M | $323K | $10K | — | — |
| 2018 | $1.3M | $1.3M | $477K | $0 | — | View 990 |
| 2017 | $1.5M | $1.2M | $499K | $1K | — | View 990 |
| 2016 | $1.2M | $1.1M | $258K | $0 | — | View 990 |
| 2015 | $1.2M | $1.2M | $252K | $47K | — | View 990 |
| 2014 | $1.1M | $997K | $266K | $78K | — | View 990 |
| 2013 | $1.2M | $953K | $261K | $189K | — | View 990 |
| 2012 | $609K | $819K | $183K | $314K | — | View 990 |
| 2011 | $658K | $528K | $237K | $159K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $1.4M, expenses of $1.6M, and assets of $590K (revenue -1.4% year-over-year).
- 2022: Revenue of $1.4M, expenses of $1.2M, and assets of $825K (revenue +18.9% year-over-year).
- 2021: Revenue of $1.2M, expenses of $853K, and assets of $817K (revenue -4.1% year-over-year).
- 2020: Revenue of $1.2M, expenses of $1.1M, and assets of $478K (revenue -6.9% year-over-year).
- 2019: Revenue of $1.3M, expenses of $1.5M, and assets of $323K (revenue -0.6% year-over-year).
- 2018: Revenue of $1.3M, expenses of $1.3M, and assets of $477K (revenue -8.8% year-over-year).
- 2017: Revenue of $1.5M, expenses of $1.2M, and assets of $499K (revenue +21.1% year-over-year).
- 2016: Revenue of $1.2M, expenses of $1.1M, and assets of $258K (revenue +3.5% year-over-year).
- 2015: Revenue of $1.2M, expenses of $1.2M, and assets of $252K (revenue +5.7% year-over-year).
- 2014: Revenue of $1.1M, expenses of $997K, and assets of $266K (revenue -3.7% year-over-year).
- 2013: Revenue of $1.2M, expenses of $953K, and assets of $261K (revenue +89.8% year-over-year).
- 2012: Revenue of $609K, expenses of $819K, and assets of $183K (revenue -7.5% year-over-year).
- 2011: Revenue of $658K, expenses of $528K, and assets of $237K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for American Legal Finance Association Inc:
Data Sources and Methodology
This transparency report for American Legal Finance Association Inc is generated by NonprofitSpending's AI analysis engine. The data is sourced from publicly available IRS 990 filings accessed through the ProPublica Nonprofit Explorer API and IRS electronic filing records. The Mission Score, spending breakdown, and other analytical insights are produced by artificial intelligence and should be used as one of multiple factors when evaluating a nonprofit organization.
IRS 990 forms are annual information returns that most tax-exempt organizations must file with the IRS. These forms provide detailed financial information including revenue, expenses, assets, liabilities, and compensation of officers. NonprofitSpending processes this data to provide accessible transparency reports for donors, researchers, and the general public.
Disclaimer
AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.