American Legion
American Legion, Somersworth, NH, shows consistent revenue but often operates at a deficit, with declining assets and no officer compensation.
EIN: 20214113 · Somersworth, NH · Updated: 2026-03-28
| Metric | Value |
|---|---|
| Total Revenue | $637K |
| Total Expenses | $287K |
| Program Spending | 75% |
| Net Assets | $390K |
| Transparency Score | 65/100 |
Is American Legion Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
American Legion directs 75% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About American Legion
American Legion (EIN: 20214113) is a nonprofit organization based in Somersworth, NH. The organization reported total revenue of $637K and total assets of $404K according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of American Legion's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
American Legion is a small nonprofit that has been operating for 80 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of -1.7%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $251K |
| Total Expenses | $287K |
| Surplus / Deficit | $-35,783 |
| Total Assets | $393K |
| Total Liabilities | $4K |
| Net Assets | $390K |
| Operating Margin | -14.2% |
| Debt-to-Asset Ratio | 0.9% |
| Months of Reserves | 16.4 months |
Financial Health Grade: B
In 2023, American Legion reported a deficit of $36K with expenses exceeding revenue, holds 16.4 months of operating reserves (strong position), has a debt-to-asset ratio of 0.9% (very low leverage).
Financial Trends
Over 13 years of filings (2011–2023), American Legion's revenue has declined at a compound annual growth rate (CAGR) of -1.7%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -11.8% | -4.0% | -9.2% |
| 2022 | -3.0% | +13.3% | -3.9% |
| 2021 | +28.8% | +39.9% | +7.5% |
| 2020 | +2.1% | -31.0% | +14.7% |
| 2019 | -4.0% | -1.2% | -12.3% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 1000 |
| IRS Ruling Date | 1946 |
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 Legion with a Mission Score of 65 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 Legion 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 $36K, with expenses exceeding revenue.
- Debt-to-asset ratio: 0.9%.
Executive Compensation Analysis
Executive compensation is reported as 0% across all available filings, indicating that the organization's officers are unpaid volunteers, which is a positive sign for minimizing administrative costs relative to its size.
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 Legion's IRS 990 filings:
- Consistent operating deficits in many years (e.g., 2023, 2022, 2019, 2018, 2017, 2016, 2015, 2014) where expenses exceeded revenue.
- Declining asset base over the past decade, from $552,315 in 2014 to $393,492 in 2023, suggesting reliance on reserves to cover deficits.
Strengths
The following positive indicators were identified for American Legion:
- Zero officer compensation reported across all filings, indicating a volunteer-driven leadership and efficient use of funds for executive roles.
- Low and stable liabilities, typically under $7,000 in recent years, suggesting good financial management regarding debt.
- Consistent revenue generation over the past decade, generally within a stable range, indicating a reliable funding base.
Frequently Asked Questions about American Legion
Is American Legion a legitimate charity?
American Legion (EIN: 20214113) is a registered tax-exempt nonprofit based in New Hampshire. Our AI analysis gives it a Mission Score of 65/100. It has 13 years of IRS 990 filings on record. Total revenue: $637K. 2 red flags identified. 3 strengths noted. Financial health grade: B.
How does American Legion spend its money?
American Legion directs 75% of its spending to programs and services. Fundraising costs 10%. This exceeds the 65% industry benchmark.
Are donations to American Legion tax-deductible?
American Legion is registered as a tax-exempt nonprofit (EIN: 20214113). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
What percentage of American Legion's spending goes to programs?
American Legion directs 75% to programs, 10% to fundraising. This exceeds the 65% industry benchmark for efficient nonprofits.
Where is American Legion located?
American Legion is headquartered in Somersworth, New Hampshire and files with the IRS under EIN 20214113.
How many years of IRS 990 filings does American Legion have?
American Legion 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 $637K in total revenue.
Is American Legion, Somersworth, NH, financially sustainable given its recurring deficits?
The organization has frequently reported expenses exceeding revenue, such as in 2023 ($287,270 expenses vs. $251,487 revenue) and 2022 ($299,347 expenses vs. $285,005 revenue). While assets have declined from $552,315 in 2014 to $393,492 in 2023, the low liabilities suggest it's not accumulating debt, but rather drawing down reserves. Long-term sustainability depends on reversing this trend or having a clear strategy for asset utilization.
What is the primary reason for the decline in assets over the past decade?
The consistent pattern of expenses exceeding revenue in many years (e.g., 2023, 2022, 2019, 2018, 2017, 2016, 2015, 2014) suggests that the organization has been using its existing assets to cover operational shortfalls, leading to the observed decline from $552,315 in 2014 to $393,492 in 2023.
How does the lack of officer compensation impact the organization's operations?
The 0% officer compensation indicates a volunteer-led executive team. This significantly reduces administrative overhead, allowing more funds to potentially be directed towards programs or other operational needs. However, it also means the organization relies heavily on volunteer dedication and may face challenges in attracting or retaining leadership without financial incentives.
Filing History
IRS 990 filing history for American Legion showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), American Legion's revenue has declined by 18.1%, moving from $307K to $251K. Total assets decreased by 44.2% over the same period, from $705K to $393K. Total functional expenses fell by 22.9%, from $373K to $287K. In its most recent filing year (2023), American Legion reported a deficit of $36K, with expenses exceeding revenue. The organization holds $4K in liabilities against $393K in assets (debt-to-asset ratio: 0.9%), resulting in net assets of $390K.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $251K | $287K | $393K | $4K | — | — |
| 2022 | $285K | $299K | $433K | $6K | — | View 990 |
| 2021 | $294K | $264K | $451K | $6K | — | View 990 |
| 2020 | $228K | $189K | $420K | $5K | — | View 990 |
| 2019 | $223K | $274K | $366K | $6K | — | View 990 |
| 2018 | $233K | $277K | $417K | $6K | — | View 990 |
| 2017 | $245K | $289K | $463K | $6K | — | View 990 |
| 2016 | $286K | $298K | $507K | $6K | — | View 990 |
| 2015 | $263K | $292K | $523K | $26K | — | View 990 |
| 2014 | $275K | $292K | $552K | $27K | — | View 990 |
| 2013 | $314K | $270K | $767K | $4K | — | View 990 |
| 2012 | $269K | $250K | $723K | $4K | — | View 990 |
| 2011 | $307K | $373K | $705K | $5K | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $251K, expenses of $287K, and assets of $393K (revenue -11.8% year-over-year).
- 2022: Revenue of $285K, expenses of $299K, and assets of $433K (revenue -3.0% year-over-year).
- 2021: Revenue of $294K, expenses of $264K, and assets of $451K (revenue +28.8% year-over-year).
- 2020: Revenue of $228K, expenses of $189K, and assets of $420K (revenue +2.1% year-over-year).
- 2019: Revenue of $223K, expenses of $274K, and assets of $366K (revenue -4.0% year-over-year).
- 2018: Revenue of $233K, expenses of $277K, and assets of $417K (revenue -5.1% year-over-year).
- 2017: Revenue of $245K, expenses of $289K, and assets of $463K (revenue -14.1% year-over-year).
- 2016: Revenue of $286K, expenses of $298K, and assets of $507K (revenue +8.6% year-over-year).
- 2015: Revenue of $263K, expenses of $292K, and assets of $523K (revenue -4.2% year-over-year).
- 2014: Revenue of $275K, expenses of $292K, and assets of $552K (revenue -12.5% year-over-year).
- 2013: Revenue of $314K, expenses of $270K, and assets of $767K (revenue +16.9% year-over-year).
- 2012: Revenue of $269K, expenses of $250K, and assets of $723K (revenue -12.6% year-over-year).
- 2011: Revenue of $307K, expenses of $373K, and assets of $705K.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for American Legion:
Data Sources and Methodology
This transparency report for American Legion 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.