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Charities Respond to ABC News Report

November 09, 2007 11:13 AM

Charitiesrespo_mn Veterans charities rated "F" by the American Institute of Philanthropy, a charity watchdog organization, responded to ABC News'"Good Morning America."

All of the charities ABC News spoke with said they felt they were doing valuable work. While some of the groups rated "F" objected to AIP's findings, several of the charities said private fundraising companies were very expensive, but without them, they would not raise as much money for their cause.

The AIP ratings are based in large part on the percent of money raised actually spent on program services versus fundraising costs and overhead. Thirteen of the 27 received an "F."

Reading the Original Report: Failing to Serve America's Heroes on the Home Front

A spokesman for the Military Order of the Purple Heart Service Foundation defended his foundation's employment of a professional fundraising company. He said he believes donations are best utilized by providing needed assistance to veterans and not in developing at their own cost an internal volunteer fundraising program.

"We try to minimize fundraising costs and maximize returns," the spokesman said.

The NCOA National Defense Foundation took issue with AIP's methods of analysis. A spokesman denied that they spend more on fundraising than on their program services, and said that more than 70 percent of their revenue goes to programs.

A spokesman for the American Ex-Prisoners of War Service Foundation said his organization had no choice but to hire a fundraising company.

"It was better than nothing," he said. The spokesman said the foundation has recently stopped employing the private fundraising company so the percentage of funds going to fundraising will drastically change. When AIP's report comes out next year, "it will look very good," he said.

The Air Force Aid Society received an "F" based on the relatively low amount of money spent on program services compared to asset reserves. A spokesman said a large portion of its funding comes from investments; they do not receive large amounts of donations and suspect that is why they got the low grade. 

The Army Emergency Relief Fund was also rated an "F" based on its relatively large asset reserves. A spokesman said they should not be penalized for having a large amount of money saved.

"We meet the demand of soldiers that come to us," the spokesman said. He added that AER gave away $70 million in assistance last year and said that good investments have grown faster than soldiers need to draw from funds.

A spokesman for the National Veterans Services Fund said the professional fundraisers they employ make it possible for them to do their job.

"We would pay the same percentage for fundraising if we did it internally, and we would reach less people," he said.

A Paralyzed Veterans of America spokesman said his charity has been doing "'A+' work for all veterans, people with disabilities and their families 24/7." He disagreed with AIP's findings and said that nearly 73 percent of all donations directly benefit veterans.

Lastly, the American Veterans Disabled for Life Memorial Fund said none of the funds have gone to the cause because they have not started building the proposed memorial to disabled veterans.  Construction of the memorial adjacent to the Mall in Washington, D.C., is expected to begin in 2008, the spokesman said.

This post has been updated.

November 9, 2007 | Permalink | User Comments (78)

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This news really hurt. I always gave to some of these charitys trying to help. Please continue to investigate and post the good Charity's too. If people don't fine this out they may just stop giving. Like, I will stop giving to Paralyzed Veterans. Thank you....Richard

Posted by: RICHARD J. INNES | Nov 9, 2007 11:35:54 AM

This story was incredibly one sided, Help Hospitalized Veterans provides a valuable service to those Veterans that are wounded and in the hospital. Get your facts right!!!

Posted by: Cheri Caylor | Nov 9, 2007 12:36:01 PM

I can't speak for all the
Veterans'organizations. My Unit 1836 Military Order of the Purple Heart, San Antonio,
Texas which gives 100% of any monies collected with our fund raising projects such as Viola Sales to Veterans issues. Our focus is immediate help such as Bus Tickets, Phone Cards, Clothing for Men and Women who need help--homeless. Countless hours of volunteer time directly improving the the lives of veteran, visiting Vet's in nursing homes, providing parties for the forgotten for Christmas, Fourth of July, Halloween and Easter. Your article is an injustice to Military Order of the Purple Heart speaking apparently from not having correct facts about what we do. I am highly offended by the grade of "F" attached to our efforts and see it as an injustice not only to myself but the Military Order of the Purple Heart individual Units.
Yours In Patriotism,

Posted by: peterrosie | Nov 9, 2007 12:40:53 PM

I am so glad someone is checking on charities so we can put our money to good use. I always give to some but I am not pleased with some of the fund raising tactics that are being used. The mail received is getting to be over-whelming and the number of different charities is, also, overwhelming. This past year, I have not been happy with the way I am feeling about giving. Thanks.

Posted by: Dorathy Scott | Nov 9, 2007 1:12:34 PM

Please let us know which charities are worthy of our donations.

Posted by: Anita | Nov 9, 2007 2:04:39 PM

My husband is a National Service Officer for one of the Veteran Organizations you mentioned this morning. These organizations are charted by Congress to help with veteran care! I know that their main goal is to provide proper advice and assistance with Dept of Veterans Affairs Benefits. Additionally, they insure veterans receive quality medical care in hospital, and in home durable medical equipment so that they have quality of life. Those benefits are usually unseen and unreported. If the VA was less adversarial to the veteran and made funds available there would be no need for organizations to have to intervene on their behalf. Your report is misleading the public! The funds train officers in medical terminology and procedures and veterans law insuring benefits are complete and lasting. In my husbands organization, all monies that are won for the veteran are 100% theirs and none is taken by his company. There are no fees for services; that is why they have fund raisers to provide training and research for better care for our veterans!

Posted by: Janet Faye | Nov 9, 2007 3:15:56 PM

This makes me so mad. I work for one of those organizations, and I make next to nothing. What they are not taking into consideration is how much money has to be put out to train people like me to be able to offer free services to veterans in helping them with the claims process. We have to have the knowledge of a lawyer, and it takes time and money to train us to do that. We don't ask for a dime from the veterans that we help. We care so much for vets, it makes me ill to think that my organization is being painted with such a broad brush by someone who doesn't fully grasp what we do. In my state alone, we brought in over five million dollars (as in money that goes straight from the government to the veterans because of the help we give the veteran, for free)while we ran on a budget of less than 5% of that. Where are they getting these figures? What are they taking into account? It is not made clear.

Posted by: Jennifer | Nov 9, 2007 3:19:03 PM

Fundraising is so expensive. Check to see how much of a kick back these so called charitable entreprenuers are getting from their direct mail folks. Think this isn't being done? Think again. They know all the angles.

Posted by: John Clifford | Nov 9, 2007 3:50:38 PM

Unfortunately, this report will surely hurt the organizations that really do some good. But, by weeding out the bad and putting in place tighter regulations, the public and private sector can continue to work together to help ease some of the issues facing our returning wounded--especially those whom are afflicted with mental disorders. Eventually, we will all pay the price from the added strain on under-financed social service program if immediate proactive support from both, the government and private sector, is not continue and enhanced. If you really want to make a difference and ensure your hard earned donation money is well spent, look to support local vets returning to your communities, directly. Although this may not be "tax-deductable", you will have the added comfort in knowing that every penny will go to those in need--and make the positive difference you intended in the first place.

Thanks to all of our vets from all wars and conflicts, for giving us your all--you deserve better. America supports you!

MM-Virginia

Posted by: M. Miles | Nov 9, 2007 3:53:46 PM

When I was hospitalzed and released to the streets, not one charity helped me out unless I convert to their 12 step religion, I did not drink or do drugs, but they told me I would after living on the streets; two years later still on the streets and I don't drink or use drugs. All I need is decent housing to get a job but they say I have to go through their program before I'm job and housing ready. I just finished my Associates at SFCC with a 3.92 GPA while camping, taking showers on campus. They just continue to treat veterans aufully.

Posted by: August | Nov 9, 2007 3:55:56 PM

Thank you Brian Ross for your story on "bad" charities which are supposed to be helping our fighting men and women and our Veterans. Please let us know which charities are good ones so I can start giving once again. I was just getting ready to give my annual donation to the Paralyzed Veterans, but I have not sent it. I want my money to go to these soldiers, not in some "fat cats" pocket. I am so proud of each any every soldier who is now serving or who has served in the Armed Forces. Thank God for these men and women who help to keep the freedoms that we enjoy in this country. I pray for them everyday, and I think it is criminal for anyone to profit in a big way at their expense. Keep up the good work ABC. Thanks, Lynne

Posted by: Lynne | Nov 9, 2007 4:22:29 PM

I'm really hurt to hear about the Paralyzed Veterans failure to make the best of my donations, which I have contributed over the last decade or so. Our wounded veterans have received a bad deal for generations. It's a shame that our government, who can spend so much making war, does not care to spend on our deserving men and women you have given great sacrifice to us and our country. Our well intentioned donations, I am sure, will be of great use to them if only the money could reach them. Please follow up this story by listing the charities that you do find acceptable. That really contribute to our disabled veterans.

Posted by: S. Peralta | Nov 9, 2007 6:50:52 PM

Our Wounded Heroes deserve better! We thank you, love you and honor you. God Bless. Please continue to give to organizations that are doing the good work for our vets.

Posted by: enough | Nov 9, 2007 7:27:43 PM

Welcome to sweeps week!! This AIP report should score an F- for its so-called grading system. How on earth can an organization that spends 73% of the funds it raises in its programs (Paralyzed Veterans of America) get the same "F" grade as an organization that invests only 2% (according to the ABC News report)? If my 6 year old came back with a school report card using this system I think I would be concerned -- and angry. I am a donor to several veterans organizations given "F"s and those given "A"s and I can tell you, they all do superb work for our veterans. This apparently flawed AIP report -- and the reporting of it as credible by ABC -- does our veterans and the people they work for every day a great disservice as we appraoch veterans day.

Posted by: Will | Nov 9, 2007 7:31:51 PM

Someone really needs to check out Operation Homefront (OH) if they think these numbers are bad. I am willing to bet would get a whopping "F" in an instant.

Posted by: LL's | Nov 9, 2007 7:53:29 PM

I am a Viet Nam vet and I have a simple question. Why do we have to have charities taking care of our veterans? What is the purpose of the Veterans Administration if it is not to take care of our veterans? We are outraged at charities ripping off donors but what about the VA? How many millions of dollars are wasted every year by the largest charity of all the VA?

Posted by: Steve Yetter | Nov 9, 2007 7:55:39 PM

Please continue the stories on TV and radio to update us on the Veterans Charities. For years I have donated to a few of the ones mentioned in your news story and I want to continue to help our Vets, but not donate to fraud and high priced fund raisers. They send out the address labels, greeting cards, etc. as a gift to us, these are things we will not use, so why do they waste the money on those things, why not just send a letter or card with the facts. Please continue to investigate and inform us.
Thank you.

Posted by: Ray | Nov 9, 2007 10:16:32 PM

To Cheri @ HHV:

You are correct. Some vets have received assistance over the years. The problem here is that good hearted Americans are donating their dollars to assist our veterans, not to line the pockets of the scamers out there. With the amount of money coming in alot more assistance should have been allocated out to our wounded heroes. These charities have an obligation (if not leagal, def moral) to run effeciently in order to assist as many vets as possible.

Posted by: enough | Nov 10, 2007 12:50:30 AM

I did some checking on who us behind the American Institute of Philanthropy, and found that it's a one-man operation in Chicago that pays himself a 6-figure salary, doesn't make his information publicly available without charge, and according to his own IRS filings would rate F on his own scale! I am surprised Brian Ross gave this guy any credence. This guy's a public relarions genius who is out to make himself a buck, not serve the public (or his findings would be online for free for everyone's benefit!)


Posted by: Susan | Nov 10, 2007 2:28:25 AM

I can only speak for 2 groups. Pralyzed Veterans of America and AMVETS. I know of what these two groups do for our Veterans.

Before you published this did you check to find out how much compensation due to the Vets these organizations?

Are you aware of how these Organizations assist befuddled Veterans in navagating through the quagmire called the VA system?

Shall we discuss the outings,entertainment, personal care items supplied to hospitilized Veterans?

We won't eve mention the USO's staffed to assist Active duty men/women and their families.

How about research funded to find cures and better ways to treat the Veterans. Some of this research may actually benefit the the families of the authors,but tey would not admit that. They would rather put the Vet's groups on blast without knowing the real facts. This just made me sick. My family knows, more than one has been helped by the very two organizations on the F list.

Posted by: Rosa | Nov 10, 2007 10:35:54 AM

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