Is the American Legion a 501(c)(3) or 501(c)(19)?

The American Legion is a 501(c)(19) organization, not a 501(c)(3). Section 501(c)(19) of the Internal Revenue Code is a tax-exempt category built specifically for veterans’ groups, and the Legion has held that classification as a congressionally chartered veterans’ organization since its federal charter in 1919.¹ The Legion does operate a separate 501(c)(3) charitable arm called American Legion Charities, but the parent organization itself sits under 501(c)(19).

What 501(c)(19) Status Actually Means

Section 501(c)(19) grants tax exemption to posts and organizations whose members are past or present members of the U.S. Armed Forces, along with their auxiliary units, societies, trusts, and foundations.² It exists because the civic and social mission of veterans’ groups does not fit neatly under 501(c)(3), which is reserved for organizations operated exclusively for charitable, religious, or educational purposes.

The IRS notes that veterans’ organizations can alternatively qualify under 501(c)(4) as social welfare groups or 501(c)(7) as social clubs, depending on how they are structured.³ The Legion chose 501(c)(19) because it matches what the organization does: mutual aid, fraternal fellowship, veterans’ services, and legislative advocacy on behalf of former service members.

To hold that status, the Legion has to meet strict membership composition rules. At least 75 percent of members must be past or present members of the armed forces. At least 97.5 percent must be armed forces members, cadets, or the spouses, widows, widowers, ancestors, or lineal descendants of those groups. No more than 2.5 percent can be individuals with no military connection at all.³ And no part of the organization’s net earnings may benefit any private individual.²

American Legion Charities Is the 501(c)(3) Arm

If you’re specifically looking for a 501(c)(3) tied to the Legion, it exists. The American Legion launched American Legion Charities in 2010 as a separate 501(c)(3) nonprofit trust. It was set up to accept tax-deductible contributions and channel them to programs including the Veterans & Children Foundation, the National Emergency Fund, the Child Welfare Foundation, Operation Comfort Warriors, and the Legacy Scholarship Fund.

Contributions routed through American Legion Charities receive standard 501(c)(3) treatment. That gives donors a clean path when a charitable deduction is the main reason for the gift, or when an employer’s matching-gift program requires 501(c)(3) status at the receiving organization.

Are Donations to the American Legion Still Tax-Deductible?

Yes, in most cases. Even though the Legion itself is not a 501(c)(3), donations to it can be deducted under a different provision. Section 170(c)(3) of the Internal Revenue Code allows deductions for contributions to a “post or organization of war veterans” that is organized in the United States and whose net earnings don’t benefit any private individual.⁴ One boundary worth flagging: not every 501(c)(19) group automatically qualifies for deductible donations under this section. The organization must be a war veterans’ organization specifically, which the Legion is.

Because the American Legion is a federally chartered 501(c)(19) corporation, it falls into the highest deduction-limit category under Section 170(b)(1)(A)(x).⁴ Cash donations are deductible up to 60 percent of your adjusted gross income, the same ceiling that applies to most 501(c)(3) charities.⁵ Veterans’ organizations without a federal charter generally face a 30 percent limit, so the Legion’s congressional charter is a real advantage for donors. You have to itemize on Schedule A to claim it, and for any single gift of $250 or more you need a written acknowledgment from the organization before you file.⁶

The short version for donors: the Legion is not a 501(c)(3), but for federal deduction purposes cash gifts are treated similarly, subject to the same 60 percent AGI cap.

Why the Legion Isn’t a 501(c)(3): Lobbying and Political Activity

The classification isn’t just a paperwork quirk. It reflects what the organization is allowed to do.

A 501(c)(3) cannot devote a substantial part of its activities to lobbying and is completely prohibited from participating in political campaigns for or against candidates.⁷ The 501(c)(19) classification imposes no comparable lobbying restriction. The American Legion actively lobbies Congress on veterans’ benefits, military readiness, and national security, work that would jeopardize a 501(c)(3)’s exempt status. Veterans’ organizations under 501(c)(19) can also engage in political campaign activity to a degree a 501(c)(3) cannot, though political expenditures can trigger excise taxes under separate parts of the tax code. That freedom to advocate is a core reason the Legion operates under 501(c)(19) for its main organization while keeping charitable fundraising in a separate 501(c)(3) trust.

What Local Posts Have to Do to Keep the Status

Individual posts do not file their own applications for tax exemption. Each post operates under a group exemption letter held by the national organization, which covers all subordinate units.⁸ A post receives its own employer identification number but stays legally tied to the national ruling. To remain covered, a post has to follow the national bylaws, maintain the required membership composition, file its annual IRS return, and report financially to the national office.⁹

The annual return depends on the post’s size. Posts with gross receipts normally $50,000 or less can file Form 990-N, the electronic e-Postcard. Posts with gross receipts under $200,000 and total assets under $500,000 can file Form 990-EZ. Larger posts file the full Form 990.¹⁰

Skipping the return is costly. If a post fails to file for three consecutive years, the IRS automatically revokes its tax-exempt status under Section 6033(j).¹¹ The revocation takes effect on the filing due date of the third missed return, generally May 15 for calendar-year filers. Once revoked, the post owes federal income tax on its earnings and has to file a new application to get its status back.¹² State tax exemptions may fall separately, since state rules vary.

Tax-exempt status also doesn’t make every dollar a post earns tax-free. Income from activities not substantially related to the veteran-service mission, such as opening a bar or dining room to the general public or regularly renting the hall to outside groups, can be treated as unrelated business income and taxed accordingly.¹³

1
Office of the Law Revision Counsel. 36 USC Ch. 217 – The American Legion
2
Office of the Law Revision Counsel. 26 USC 501 – Exemption From Tax on Corporations, Certain Trusts, Etc.
3
Internal Revenue Service. Veterans’ Organizations
4
Office of the Law Revision Counsel. 26 USC 170 – Charitable, Etc., Contributions and Gifts
5
Internal Revenue Service. Publication 526, Charitable Contributions
6
Internal Revenue Service. Substantiating Charitable Contributions
7
Internal Revenue Service. Exemption Requirements – 501(c)(3) Organizations
8
The American Legion. Post IRS Inclusion Letter
9
Internal Revenue Service. EO Operational Requirements – Obtaining Copies of Exemption Determination Letter From IRS
10
Internal Revenue Service. Instructions for Form 990 Return of Organization Exempt From Income Tax
11
Internal Revenue Service. Automatic Revocation of Exemption
12
IRS.gov. Automatic Revocation of Exemption for Non-Filing – Frequently Asked Questions
13
IRS.gov. Audit Technique Guide – Veterans’ Organizations