How much of your donations actually reaches veterans?

Photo by: JUAN DALE BROWN/TREASURE COAST NEWSPAPERS. Dan Wagner, an Army veteran, collects money on the side of California Boulevard in November in Port St. Lucie of the Disabled Veterans Foundation based in Plantation. After Wagner says the foundation helped him when he had some problems, he now helps by collecting money for them. The foundation collected $266,132 in 2009 with expenses totaling $257,232.
$1.70.
That’s likely about how much of Navy veteran Gilbert Hahn’s $10 donation went to help his fellow vets.
After receiving a letter asking for a donation, Hahn, an 88-year-old Stuart resident, gave the money to a group called the National Veterans Services Fund. But only 17 percent, or $1.4 million of the $8.4 million the organization spent in 2008, went to help veterans, according to the most recent information supplied by the Florida Department of Agriculture and Consumer Services and the group’s own Internal Revenue Service filings.
“This is an outrage,” said Hahn, a veteran of service on board the USS Hancock in the South Pacific during World War II. “I gave them a small donation and they are back asking me if I forgot them and wanting more. They should be exposed and stopped. They are just making a living off us veterans.”
Hahn’s experience is not unusual.
A Scripps Treasure Coast Newspapers survey of 121 organizations across the United States registered with the Florida Department of Agriculture and Consumer Services purporting to raise money in Florida for veterans or military-related charities shows that they reported raising a total $472 million, of which they spent $439 million. Of those total expenditures, 66 percent went to aid veterans and active duty military personnel or their families, according to data the groups reported to the IRS.
The percentage would only get a “D” rating from most of the groups that monitor charitable activity.
Don’t let the percentages fool you, a lot of the money isn’t going where you think.
Here are examples from some organizations’ federal tax forms:
Allied Veterans, a St. Augustine-based group offering help in a variety of areas, collected $403,042 in 2008, the last tax filing available from the state, but spent only $2,700 on programs for veterans. It spent $456,295 for “administrative expenses,” leaving it with a deficit that year of $55,953.
United American Patriots Inc. of Greensboro, N.C., raised $1,042,694 in 2009 but gave only $182,247 to its veterans programs that year. It spent $856,719 on fundraising.
National Veterans Services Fund Inc. of Darien, Conn., which solicits heavily in Florida and took Hahn’s donation, raised $8,836,794 via the internet and mail pleas, but gave only $1,484,964 to veterans in 2008, the last tax year on file with the state. It reported spending $6,537,425 for fundraising and $452,335 in administrative expenses.
“If the people knew what is going on, they wouldn’t donate. The donating public is being ripped off,” said Daniel Borochoff, president and founder of the watchdog group, American Institute of Philanthropy, which not only reports on formal filings by nonprofit organizations, but evaluates the reports to see if those groups are achieving their goals.
Borochoff said the proliferation of groups purporting to aid veterans, active duty personnel and their families has created an inefficient and wasteful situation where nonprofits are spending high percentages of money on the fundraising efforts that bring in those donations.
“We cannot afford to waste American charity money by spending it on fundraising,” he said.
William Arnold, a Vietnam-era veteran and active in veterans affairs in St. Lucie County, said he is horrified at how much donated money does not reach veterans.
“I know the donors have to be unaware of this,” said Arnold, retired assistant controller at Florida State University who also served in the State Comptroller’s Office.
There has been an explosion of veterans’ aid groups in the last few years because residents want to help, partially because of the ongoing wars in Iraq and Afghanistan, said Bennett Weiner, public affairs director for the Better Business Bureau’s Wise Giving Alliance.
“Unfortunately, that has attracted the more questionable element that has taken advantage of American generosity,” he said.
Weiner said the Better Business Bureau would like to see more than 65 percent of money collected going to the particular program the charity is supporting. Only 49 of 121 organizations registered with the state spent at least that much on their veterans programs.
To legally raise money in Florida, organizations must register with the Florida Department of Agriculture and Community Services and file IRS Form 990. A form 990 is the nonprofit report form equivalent to an individual Form 1040, which residents use to report all income and expenses.
But chartering as a nonprofit organization and registering with state and federal authorities does not ensure veterans and their families will benefit from any gift. It just means the proper paperwork has been filed.
And not all organizations collecting money in Florida have registered to do so.
Furthermore, it’s rare that state or federal officials actually look to see if a nonprofit veterans group is doing what it says it does.
Still, Weiner said, “just because there are some questionable actors in this field, it does not mean that all veterans organizations are not doing a good job. There are some that are and are providing vitally needed services.
“Unfortunately this puts the burden on the donor to verify who they are giving to and whether they are doing a good job, so they can decide before they make the gift.”
Examples of organizations Weiner said are doing a good job include:
Southeast Florida Honor Flight Inc. collected $75,609 in 2009 to fly World War II veterans to see the new World War II monument in Washington. It spent $40,726 and had $34,883 for its next flights in reserve.
“Every dollar we get goes to facilitate the mission of flying Florida veterans to see their World War II Memorial in Washington, D.C.,” said Mike Roberts, Honor Flight president. “Even the guardians who go on the trips with the veterans pay their own way and that is $400 each.”
Air Force Enlisted Village of Shalimar, raised $7,035,062 in 2008 and used $6,925,288 to help retired Air Force veterans or their spouses.
National Military Family Association of Alexandria, Va., raised $10,652,623 in 2008, the last tax year filed with the state, and spent $8,462,340 meeting a wide range of needs for both active duty and retired personnel.
Special Operations Warrior Foundation of Tampa, amassed $6,317,697 in 2008 and spent $2,081,908 to provide for unmet needs of wounded special operations warriors from all military services. It has $3,692,723 in reserve to care for new wounded warriors as they come in from the battlefields.
The most visible collection activities on the Treasure Coast have been by The Veterans Support Organization and The Disabled Veterans Foundation Corporation, which place individuals, dressed in camouflage clothing resembling uniforms, on street corners with canisters asking for money.
The Veterans Support Organization of Warwick, R.I., which has solicited donations on Treasure Coast street corners, raised $2,579,603 in 2009, spent $2,400,848, yet distributed only $1,473,310 to veterans, according to IRS forms. More than $927,000 went to administrative and fundraising expenses.
Disabled Veterans Foundation Corporation of Plantation provides housing for veterans and reported collecting $266,132 in 2009, and spending $257,232. The group’s website claims 71 percent of the funds go to veterans projects, but the group files its financial statement using the short form 990EZ, which does not itemize contributions and expenses. Officials with the organization did not answer repeated telephone calls to their headquarters.
Organizations raising less than $500,000 a year and having total assets less than $1.25 million are permitted to use the short form, but should be willing to supply all of their financial data, according to representatives of the national charity watchdog groups.
Because street corner solicitors are collecting handfuls of change or wads of bills, no one knows exactly how much money they raise.
The Veterans Council of Indian River County is so incensed about fundraising activities by the Disabled Veterans Association, a Parma, Ohio-based group, that all 17 member organizations are asking the county and city governments to ban them from soliciting on the street corners and at shopping centers in Indian River County. Council members are suspicious of where money the group collects is going.
“I confronted one of the solicitors, who was wearing battle dress, and asked him if he was a veteran. He finally admitted he wasn’t. They are an affront to real veterans,” said Retired Air Force Col. Martin Zickert, council second vice president.
Members also said some of the uniforms they’ve seen solicitors wearing are fakes.
“It should be illegal for anyone to solicit while seeming to be a veteran,” said Bill Migliore, 67, a retired Air Force veteran in Vero Beach.
Florida Secretary of State Corporation records show Disabled Veterans Association was granted nonprofit status in 1997. That status was revoked in 2001 because of failure to file annual reports. The organization is not listed with the Florida Department of Agriculture and Community Services as eligible to solicit money in Florida.
The organization filed its last IRS Form 990 in 2007. That form showed it had total revenue of $9.3 million, spent $380,701 on services for veterans, paid fundraisers $7,777,429 and had management costs of $63,192.
Zickert is chairing the effort to ban the solicitors. He hopes the movement will spread to other Florida counties.
The City of Stuart has already banned solicitors from standing in the medians of public roads to collect money.
Sgt. Martin Jacobson of the Stuart Police Department, said his department conducted an investigation into street solicitations by The Veterans Support Organization in 2009. He said the department found the uniformed collectors were hired from a local day labor service and received one-third of all they collected. He said few were military veterans.
Jacobson said the ban was a public safety issue, not a First Amendment issue, because the department learned that if the solicitors gave only $1 to veterans causes, they were within the law.
Mike Nakowicz, spokesman for The Veterans Support Organization, defended the use of solicitors wearing battle uniforms. He said the charity does not employ professional fundraisers, and that the men and women on the street are “…homeless/jobless individuals we are rehabilitating through our on-the-job work program.”
Stuart Police Chief Ed Morley said the Veterans Support Organization came back to the city in January 2010 to get a permit to solicit. He said he told them they would first have to show that the Florida Department of Transportation approved of their soliciting.
Justin Wells, South Florida Chapter manager for VSO in Oakland Park, said his organization isn’t disturbed by Stuart’s decision not to allow solicitors.
“They don’t let anyone solicit,” he said.
He said the organization only keeps statewide figures for collections, but that much of the money collected in South Florida goes to support a 100-bed housing facility for homeless veterans.
In spite of opposition from groups such as Indian River veterans, solicitors are still appearing on the streets.
“It is easy for some people to take advantage of the veteran and first responder groups (police or fire charities),” said Michel Nilsen of the Association for Fund Raising Professionals, “and take advantage of the public’s generosity. (Fund solicitors) will come up with arrangements where they take 70, 80 or 90 percent of the money raised. It is not uncommon that some charities end up with less than 10 percent. It is sad, but we have court rulings that say fundraising is a free speech issue which cannot be regulated.”
The American Institute of Philanthropy’s Borochoff also blames veterans groups for many of the costs of raising money. In appearances before the House Committee on Governmental Reform in 2007 and 2008, he told the committee that some veterans groups sign contracts agreeing to pay much of what is collected because they feel they don’t have the time or ability to raise the money themselves.
Nothing resulted from the hearings in 2007 and 2008 and no state legislature has enacted any legislation that can control the solicitation of money and its high costs.
That leaves the onus on potential donors.
Borochoff said people who are solicited for money should carefully examine the organization. Of special importance is the ratio of fundraising costs to money paid for program benefits. He said much fundraising is done by professional solicitors interested only in a high commission for their work.
“It behooves the donor to ask these tough questions,” Nilsen said. “Unless people start complaining, take good notes about who is on the line, what they say, and start demanding responsibility, it will not get better.
“You don’t have to give immediately. You can look at alternatives. There are a lot of people who will look at all the options, but when a charity calls, they don’t even look. It’s like Bam! Give!”
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about 2 years ago
That is why you are better off donating to your local VFW,AM VETS OR LEGION organizations.
about 2 years ago
I’m not sure I’ll be donating to these guys much anymore…
about 2 years ago
Sadly, this does not surprise me. I do not donate to these organizations for this reason. I purchase red poppies and donate only to the VFW, AM VETs or Legion as the 1st poster mentioned. If I had time I’d volunteer at the VA and support my fellow vets that way as well, when I retire that is my plan.
about 2 years ago
I’m so happy to see these people finally exposed.
I had given $20 to one of the camouflaged solicitors on US 1 around the holidays while on my way to the mall to do some Christmas shopping.
When I got inside the mall I found members from the same group soliciting for donations. One of them, dressed in camos, approached me and asked for a donation, I explained I had just given my last bit of cash to someone from his organization. He asked me if I had a credit card, I said yes (smack forehead now). This is what he said to me “Then you know what you do? You go to the little machine at the end of the mall that says ATM, put that little plastic card in the machine and get some cash.”
Now, I have family and friends who are Vets or currently serving this great country of ours and this weak puke in front of me had no idea what being a member of our armed forces was about. Words like integrity, respect and honor were not a part of his vocabulary. I walked away and vowed to NEVER give to another group like this again.
Great story Joe and thank you for exposing this group for what they really are and for giving us a list of organizations that are the real deal.
about 2 years ago
Joe thank you.
zings.es
about 2 years ago
It’s pathetic that these solicitors are wearing the uniform that Soldiers past and present are dying in just to put up a front to make a profit. Actually, pathetic isn’t a strong enough word.
about 2 years ago
Dear Sir,
While I respect your investigations let me set the record straight. Allied Veterans of the World, Inc. & Affiliates does not accept donations. We are a 501C-19 veterans organization and was the first Veterans group to Charter in the State of Florida. We earn money through out Internet Centers and make donations to Veterans Healthcare and first respondent organizations. Over the last few years since we have opened the Centers in Florida. We have given the VA Hospitals where we operate, hundreds of thousands of dollars. Which is a drop in the bucket as to what we have donated during the last four years. NONE OF THIS WAS DONATED MONEY. Our Internet Centers are operated in Florida so, the funds we Earn stay in Florida with the exception of the funds that Go to the Biloxi VA Hospital, which services over 35,000 vets from the pan-handle. We are proud of the work we do and the help that we can give other Veterans Organizations throughout Florida including the Florida Department of Veteran Affairs.
Yours in Service,
Jerry W. Bass, National Commander
Allied Veterans of the World, Inc. & Affiliates
about 2 years ago
For some reason I had a bad feeling ?You see them at Walmart and on the street lights in camouflage out fits and you believe them ? I’m pissed . It Denyse the real vets money ! police SHOULD CONCENTRATE on offences like that ! The worst offence I can think of is to take advantage of people that layed down there lives ! For this Obama nation and get riped off !!
about 2 years ago
Mr. Bass,
Your “veterans organization” does not employ any actual veterans and it does not benefit any veterans. I am a disabled veteran myself who has stopped in your “internet centers/casino’s..” I was treated with disrespect and asked to leave. Your people are not well trained. And do not acknowledge the service of a combat vet yet alone the service of an average vet. I am appalled that you would even associate your name with that of hard working veterans who do not benefit from your shady endeavors.
about 2 years ago
Just this very evening while driving home from SLW, Fire Rescue was collecting at the turnpike light on Prima Vista. I only had a $5.00 bill and gladly dropped it in the boot prompting a profuse “thank you” for my donation. Nice…
I noticed in my mirror that the handsome collector walked behind my vehicle and had stuck his hand in the boot; I naturally assumed it was to push the $ down. Then the car in front of me began waving a dollar bill out of his window. Still aloofly checking out the hot fire guy as he again walked past me, it was then I noticed a $5 bill discreetly palmed in his right hand. Odd I thought, since to me the boot seems the safest and most practical place store donations, while collecting in a high traffic area. I found myself momentarily sickened by that action, then thought best not to jump to conclusions and refuse to let this isolated incident tarnish my high regard for the service. Since the light turned, I have no idea what that was about. But frankly, having come upon this article, has certainly raised an unpleasant food for thought…
about 2 years ago
In addition, your 1% donation is not very impressive. “Real veteran organizations” give 90-100%. Let’s see you do that. As for the people that contribute to these organizations. You would be much better served by donating to a real charity such as VFW, DAV, or the VA.
about 2 years ago
I am a retired Dept. of Veterans Affairs psychotherapist. I am also a disabled, Vietnam Combat Veteran. I have worked with many Veteran oganizations throughout my career with the VA, and as a Veteran for the last 39 years. I have never experienced phony Veteran Organizations, much less the phony wannabe Veterans that represent themselves as Veterans…until I retired to my home state of Florida last year. You won’t find these pretend Vets or their phony organizations in cities where there are military bases, or higher concentrations of Veterans…most particularly Veterans that have served multiple tours in Iraq, and Afghanistan. The reason these phony, pretend veterans wouldn’t make an appearance there is they would be run out of town on a rail as soon as they show up on the street or in the malls. I recently visited Indian River, and Treasure Coast malls while shopping for the Holidays. These Pretend Vets where positioned several feet inside the entrances making them widely exposed to the unknowing shoppers entering the mall. Helping Vets is a popular thing to do these days, and the dishonest folks that have been mentioned in the article know this well, so they stick their white bucket in your face and ask you to donate, which most people do. I asked the Pretend Vets what their rank, rate, rating, and or field/MOS was while in the military. Every one I asked couldn’t answer without goofing it up because they have absolutly no clue about the military, etc. I did some research on the internet and found many negative renderings about VSO, mostly from other states. Yes they have donated funds to the VA in West Palm Beach but none of it went to medical, or clinical programs that they state in their literature taped to that bucket I previously mentioned. In fact, no organization can give money to any VA clinics, hospitals to pay for or support medical services or anything related. These programs are line item budget funded by congress. Money can be donated to the VA to help homeless Vets to eat, sleep, and have warm clothing, etc., but no medical care, medicine, or clinical services as they might have you believe. I believe donations are welcomed at Fischer House residenses but I’m not sure of that. I complained about VSO to the previously mentioned mall’s management. They informed me that the Simon Mall corporate office gives permission for VSO to solicit money in their malls, and that they are considered vendors. I expect they have to pay the cost to collect their money but don’t know for sure. If these dishonest pretend Veterans are to be stopped, I suggest discussions with the entities that enable/allow it to happen, and if that occurs, they will disappear in short order. If the well meaning public wants to support Veterans, give money to the well established, legitimate organizations such as the American Legion, Veterans of Foreign Wars, Disabled American Veterans, Vietnam Veterans of America, etc. Also there are many Local Legitimate Veteran organizations that help Veterans right here in our community. Another way to help is to give Veterans Jobs. Employers in the area should establish preference for Vets, just like the Govenment does. Regarding the VA: All citizens, residents, etc., that want to know about the VA, and how it helps our Veterans should log on the the website at http://www.va.gov
about 2 years ago
So, the stae regulatory agency that registers these groups doesn’t have the resources to monitor them. Fair enough. Then how about an easily measured performance standard? Legislation that would require any charitable organization operating and collecting in Florida to put a minimum 84 percent of what it raises directly into services. A standard of 16 percent for operational/administrative expenses is considered reasonable by most in the nonprofit world.
about 2 years ago
I’m reluctant to give to any charity working roadways and intersections. It slows the pace, poses traffic dangers, and the camo guys tend to be as pushy as the old squeegee guys in New York.
I won’t be rushed or bullied into a donation without reading about a charity and it doesn’t take a rocket scientist to figure out a young family in a 12 year old VW doesn’t have much to spare.
I’ve suspected many of the roadside guys weren’t real vets, they had this desperate day laborer look and a hard sell. I know many of our vets need help, and for the real men and women who served in recent conflicts I would gladly skip a lunch, or a movie if the money was going to help them.
I’m not even going to roll down my window now or make eye contact with roadside soliciters; when the light changes I’ll honk until this group reforms itself or folds. Sad.
about 2 years ago
The SCUMBAGS and the Organization they WORK for
get away with this Because Police let them walk them walk thru stopped traffic at intersections . The state allowans them to Keep the Money % . The person collecting handing out little flags and paper keeps a % for standing on the Street collecting. If you want to Donate to Veterans contact any VA HOSPITAL http://www.va.gov
about 2 years ago
I’m glad to see someone finally did look into these
about 2 years ago
As a retired veteran, I am appalled when I see ANYONE in military uniform begging for money at an intersection. They should all be charged under the new FL statute. Maybe instead of writing tickets on Crosstown Parkway, our local PD should conduct a criminal investigation like Stuart did and charge these thieves. I’d bet you the next stop after a day in traffic probably leads them to a local bar or drug haven to spend our hard earned money. Please tell everyone you know if they want to contribute to us vets, give to the local American Legion or VFW… Thanks for your support.
about 2 years ago
best report ever I thought they were rip offs.
about 2 years ago
I guess people saw the bankers and hedge fund guys raking in the cash- then taking bailout money from OUR treasury
so we have copy cats collecting in camos. The independent
types who stand on corners at intersections looking for donations often have signs- it seems that only ex-marines are homeless. Strange.
about 2 years ago
As a recent veteran and mother of a soldier that will be leaving for Afghanistan in June – I thank you very much for this information.
about 2 years ago
I would like to know how much of the monies raised by Amvets of WPB goes to the vets them self. vs used for fund raising and salaries.
Don Curtis
dhc0617@aol.com
about 2 years ago
Joe, an absolutely stunning package. Really good work. I can barely imagine how much work it took. And it is so warranted.
Congratulations.
Mary (Dodge)
about 2 years ago
Joe’s story illustrates what has been a problem with most “charitable” organizations. Whether the organization is a scam, or whether it is just so heavily invested in infrastructure and administration (a la Red Cross), far too many see less than 20% of contributions go to the actual need. Caveat Emptor has never been so true as in dealing with charities.
about 2 years ago
I guess I will not give money any more. This report really opened my eyes. Of course if the VA and congress were doing what they are supposed to veterans wouldn’t need anything more. But sadly, that’s where the real crime is, isn’t it?
about 2 years ago
I am 100% permanent disabled service connected disability,How much do veterans charities help veterans ZIP 0, I have sought help in paying for hospital bills that were outside the VA hospitals and other bill that are in collection,Im trying to avoid going bankrupt.How much help do these organizations give? they don’t give a tinkers damn thats how much, they collect funds but they dont help individual veterans.You seek grants from the feds they are just blood suckers for what lil funds you get from your disability checks just dont stretch far enough, when you seek help all they want is you to give them money instead of them helping you they are as bad as a VIRUS.If you are a disabled verteran as I am they dont give a DAMN
about 1 year ago
I agree see my post as well identical response I have contacted every agency as well all121 m ot one red cent to aid me VA#file 28875917 ……..100% service connected disability complete and total disabled…..You are correct they dont give a damn they collect funds and then for example American Legion uses funds to throw parties get drunk have barbeques organize metal detecting adventures …….In otherwords misapproiate funds to serve their own needs other than helping wounded veterans……Will the US Attorney General do anyting to stop this abuse NO!!!!@@! willl Govt state or federal ….NO. 817 5425478 my cell
about 1 year ago
Mr. Bass:
Please investigate locations #63 and #40 in Jacksonville Florida. Double check your jackpot winners for close assoication/relationship with employees. It seems there are some kickback siutations going on. How can two people win over $60,000 in one year? That is very questionable; when most veterans lose and never even win $100 at once,, But you have the same people winning 2 jackpots in 1 night within a 20 mins time span,that is questionable and looks like a setup.
Mr. Bass I trust you will take a closer look at this type of activity and correct it. Most veteran will support Allied, but no one likes to be cheated and watch this type of behavior go on.
about 1 year ago
So many have family members who are spending money at ALLIED to buy internet time (which is seldom used) rather they only reveal the sweepstakes. This is impacting the poor communities and driving poverty stricken groups deeper into debt. Many have lost their homes because veterans, their grandmothers and loved ones have become addicted to revealing sweepstakes at ALLIED; otherwise grandmother does not used the computer at all. She never uses the internet time. So many need professional help to overcome addictions to revealing sweepstakes at ALLIED. Generations will suffer, their grandchildren’s inheritance is gone…….and the sweepstakes they revealed…guess what it is a total loss. They did not win. Sad when the Elderly are spending over $1000 in one day just to reveal sweepstakes….at one machine, at one location….guess what she did not win…….SAD!!!!!SAD!!!ADDICTION!!!!!!!ADDICTION define it…..and guess what they are addicted to revealing sweepstakes. Take the money out and you will see that they are not addicted to the games…just the possibility of have a winning sweepstakes. NO THIS IS NOT GAMBLING!!!!!! NOT AT ALLIED; but at any other Gambling establishment it is gambling. PLAY ON WORDS!!!!!!!!
about 1 year ago
Mr. Bass:
Yes! ALLIED has made contributions to many communities, according to the letters and pictures on the walls of the various ALLIED Internet Cafes, for this the State of Florida and Veterans are thankful. However, this does not negate the thousands upon thousands who are suffering from addiction to revealing sweepstakes; although it is not considered GAMBLING the side effects are the same, no money, bills not paid, homelessness, depressions, no food for the children, and hopelessnesss by some you hear talking after they have spent their monies at the ALLIED. You can hear the conversations in the parking lots etc. Mr. Bass, please conduct your own internal investigation. One more thing children should not be allowed to wait in cars parked outside of the ALLIED internet cafes, in the heat/cold. If your security guards see this they should call the local authorities.