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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)

User Comments

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I have been giving to some of the organizations rated F and wish to avoid such in the future. Where can I find a list of the high rated organizations?

Posted by: Harry | Nov 10, 2007 3:46:59 PM

We need to check out the guy who is behine American Institute of Philanthropy. He rates these charties and other honest ones and he is taking home a 6-figure salary for his so called non-profit AIP. He doesn't make his information publicly available without charge, and according to his own IRS filings would rate F on his own scale! This guy's a public relations 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: Lori Peoria | Nov 10, 2007 8:21:12 PM

Did anyone mention that the person heading up AIP is also an ABC consultant? Irony? I think not. It also appears that this gentleman did not do enough homework. Question for him: What have YOU done for our troops today?

The group I VOLUNTEER with - and yes we are ALL volunteers - (no $40 subscription fee with us.lol) has heard from thousands of soldiers in the sandbox how much they value what we do for them. On a daily basis we hear from THEM that what we do, matters.

To them, what ever we GIVE - no strings attached - has NO monetary value to us or them. To every single one of US, and to EVERY soldier, it is strictly - and solely - a GIFT from heart to heart.

PRICELESS!

Posted by: brat | Nov 11, 2007 2:36:11 PM

Is this how our country treats our soldiers no tax dollars but only charity. The President does photo ops with a few injured troops while thousands of other injured soldiers get poor medical care. Blackwater has up date equipment for their protection with the money that the US gives them to save their lives. Our troops get less then good equipment as thousand die or injured because the tax money goes else where. The troops are living in hell and Americans don't stand up to the enemy the White House and demand that they be taken care of. The White House is to busy giving Billions of dollars to Iraq/Afghanistan Leaders. Now Iraq needs Health Care for men/woman/children and we're suppose to give money for their care. Bush/Cheney can't give money for American Children's Health Care but we can give the money to Iraq. I say save your ribbons and flags and stand up and speak out for our troops serving in hell. Bush/Cheney never served in the US Military so they are clue less as to what's this is all about.

Posted by: Jackiej | Nov 11, 2007 6:21:05 PM

Veterans have always received less than they were promised. The same 92% of our people who have shuddered at the historical threats to our country's security have always found it economically unattractive to support our veteran men and women after they have defended us. The backbone of active support for veterans comes from veterans and their families. The greatest amount of money support comes from caring people who get a tax benefit for their generosity. After danger has passed, so many people clamor that our veterans might somehow MILK the kindness of sympathetic and grateful citizens that a whole industry has been set up to PROTECT AND INSULATE THE GIVERS. People rest easier with this system that absorbs 70 or 80% of charitable contributions and provides a better standard of living to some charity workers than it does to any recipients. Apparently a healthy full time charity worker is more pleasant to deal with than a crusty, possibly embittered veteran.

Posted by: Michael E. Maus | Nov 12, 2007 12:07:42 AM

Shame on ABC for using sound bites from their own consultant as the supposed unbiased expert on military non-charities to get a ratings spike around a national Holiday that honors our war heroes.

Who suffers as a result? Those service members who need help the most - the ones that fall through the cracks of the system and need private sector organizations like these to stand by them.

Come on ABC - what's behind the full scale attack on HHV and founder Roger Chapin after all they have done for our troops? Based on the ratings of the real industry expert The Chronicle of Philanthropy two thirds of monies raised by HHV since 1971 - over $300 million - have been spent directly on program services.

That is in line with the top national charities like American Cancer Society and the American Heart Association.

It would be great if our government would render all private military charities obsolete by providing the funding and the programs needed to meet the short term and longer term needs of all of our war veterans.

Until then lets support those who support our troops.


Posted by: JJ | Nov 12, 2007 12:53:56 PM

This is the way we treat our veterans.

Posted by: Samantha Bumpers | Nov 12, 2007 5:21:55 PM

Please list charities which ARE helping veterans and their families. I want to help, but am seeing in your report that many of the charity groups to which I have contributed are not using it to substantially help veterans. I do not want to withhold support, but do not know and have had difficulty finding a list of those which your investigation found were legitimate or deserving.

Posted by: Mary Ann Dotson | Nov 12, 2007 11:13:39 PM

I have been giving to Paralyzed Veterans and VFW for over 5 years now. Maybe longer. How can I be sure ABC reports are correct? Can someone email me a valid report showing that they are handling the money properly.

Posted by: Christine | Nov 13, 2007 4:48:26 PM

I would like to say that Dan Borochoff failed to accurately report to viewers across the world about the AmVets organization.His so called "watchdog" findings are inaccurate. I urge all people across the world who generously donate to our organization to disregard the recent story introduced by ABC. Our organization spent 77.2% of it's ( IRS reported 2005 form 990) contributions on programs directly benefitting our veterans. From September 1,2006 through August 31,2007 AmVets National Service Officers completed 65,835 VA claims on behalf of veterans resulting in 323,964,340 in retroactive claims benefits paid to those veterans. AmVets takes care of it's veterans and the world should know we have been doing so since 1947.

Posted by: Ron AmVets National Service Officer | Nov 14, 2007 11:27:10 AM

ABC Please investigate the frivilous law suits filed in IL, VA. and Calif. filed using the funding of the Sevice foundation,Military Order of the Purple Heart.
Wouldn't it be nice to know where all this money came from for these laws suits against innocent members and then who paid for the awards to pay off counter suits that were won. If it was our donated money earmarked for veterans programs,shouldn't we know the truth and find out who is responsible, and shouldn't they be held liable for the misuse of funds that were designated to help care for our dedicated veterans and widows and families.This is a disgrace to the Military Order of the Purple Hearts name because of a few greedy people.LETS MAKE SURE THE MONEY GETS TO THE VETEANS RATHER THAN THE PERSONAL AGENDA OF THESE SELECT FEW.This needs to be investigated. My Father,Purple Heart Recipient was one of the many falsely acused and stripped of his membership, job, ability to care for his family and severe mental anguish leading to heath problems. My Father was the Man on the news who picked up the flag at the art institute of Chicago when a student was desigrating our flag in an art dislay.My Father is a Hero in many peoples eyes. Sincerely Dave

Posted by: David Mons | Nov 14, 2007 3:12:00 PM

Questions we have and asked to be investigated-- Were any funds diverted to other than care of veterans and their families? Can ABC obtain a forensic audit?
Since so much of the funds were misused--how were the receipts handled?
How successful have they been in their audit reporting to the funding source in the past the MOPH-Service Foundation? The concern here is only the past 2 or 3 years.
and
What can be done to restore the validity of the organizations to help those veterans and their families, and to those real heroes, such as Paul Mons, who even now is an outstanding American Purple Heart Veteran who has been pushed out of the MOPH organization, causing him great anguish, heartache,and pain due to his dedication to the purpose of the MOPH which has been apparently been abused in the recent 2 to 3 years.

Posted by: J. A. Griffith | Nov 14, 2007 8:53:49 PM

I am a veteran of the first Gulf War. I hope to never need the services provided by these veterans' organizations, but am comforted to know they're there if needed. I understand that these "ratings" can be slanted toward individual biases and hope that the honest mistakes made at managing these organizations are improved and/or corrected. What deeply disturbs me is the apparent audacity of the MOPH national and local leaders to use DONATED funds for their legal defense. They are defending themselves against former MOPH members who claimed they were falsely removed from the organization, and these "leaders" are losing?! I'm not a lawyer and have NOT stayed at a Holiday Inn, but it sure seems to me that there is something criminal happening with the management of donated funds. How many VETS (for those that HAVE NOT stayed at a Holiday Inn, these are people who FOUGHT FOR OUR GOD-GIVEN FREEDOM!!) and/or family members are losing benefits due to the monies being directed elsewhere?

I am following this up with a letter to an Illinois lawmaker to check on the problems that have occurred and continue to occur at the Chicago branch of the MOPH. Paul Mons is a fellow veteran and my uncle by marriage. I admire this man deeply for his integrity and service to this country. This Veteran was removed from his leadership post at the Chicago Branch for what appear to be trumped up charges but nobody will conduct a proper investigation. That doesn't work for me.

Posted by: Mike Rodgers | Nov 15, 2007 12:00:47 PM

I have been reviewing the statements made here, and indeed fund raising is a major issue.

Of as much or perhaps greater concern is what do charities do with the funds they receive. In reading the above postings it appears the Military Order of the Purple Heart (MOPH) uses funds raised for service and welfare for other reasons. (This is also rumored in the veteran community and now out in the public.)
How much money was used for litigation caused by less than a dozen members of the MOPH. Do all the members know of the misuse of funds? A few members of the MOPH filed frivolous suit against other members; have they (those that auithorized and filed suit using membership money) paid back the funds generated by the contributing public? Were funds raised for service and welfare used to pay settlements to Purple Heart reciepients in CA that were harmed by just a few MOPH Members at the top?
Do citizens of IL know as much as $1,500,000.00 may have been raised for service and welfare to help veterans and their families in IL, which was authorized to be spent by members of the MOPH in Texas to harm combat wounded citizens and their families in IL?

The MOPH and the MOPH Service Foundation have interlocking boards, they are close to one and the same.

For example the Current and Past National Commanders of the MOPH vote and are members of the MOPH Service Foundation. The MOPH plays a major role in the MOPH Service Foundation in all they do, speaks on issues and have a votes. It is rumored the MOPH also has membershop on the MOPH SF Finance Committee.

In summary it appears less than a dozen perhaps as few as 6 need to be made accountible for their actions to harm so many combat wounded and their families and damage the very immage of the Purple Heart and all who have presented the decoration.

Like many Purple Heart Reciepients I fear retaliation and apoligize for not using my full name at this time. Just reading the above it is clear so few have harmed so many and continue. Just look at the fact the state of Main withdrew there State Charter with the MOPH untill such time as honesty and integrity is restored. Indeed they demonstrate that which exemplifies the Purple Heart.

Posted by: Veteran Advocate | Nov 15, 2007 2:26:28 PM

The administrations in office have been slowly dissecting veteran benefits since the Regan years (in office 1981-1989) besides Clinton there has been little to no interest or regard for the well being of Americas Vets old and new. Continuous cuts funding benefits has torn our veteran war heros down, left them unaccounted for, alone and forgotten. I have been personally affected by the actions and policies in place approved by these administrations. I feel public awareness on a national scale is only going to help make a change. Exposing these self serving policy pushing criminals in office will directly effect a positive push to helping our nations Vets. Lets take action and rally for a better future for our heros of tomorrow.

Posted by: Christopher Spruell | Nov 15, 2007 3:54:51 PM

The MOPH is a wonderful organization, over the years it has done much for the Veteran, The members took pride in belonging. We were and are volunteers.
Unfortunantly the past few National Commanders, have thought they were runing a business, and forgot about the needs of the Veterans and of the members. They treated it like their own smorgasboard, and used monies that should have gone to Veteran programs to fund their aggressive personal agendas. They have worked very hard to destroy what many have worked hard to establish. That they would use donated money to avenge members, who do not agree with their personal agendas, or for revenge, if someone stood up to them or spoke up. Shame on them. Now I am told that the LAMOPH (the auxiliary) have followed suite, and they are also abusing the members with their feeling of power. When will it stop? Probably after all the VOLUNTEERS have fallen away due to the embarrasement that the officers have done to the once proud organization.

Posted by: soon to be gone sad member | Nov 15, 2007 11:58:57 PM

Citizens of IL care for our military, their widows and orphans and over $200,000.00 was spent for purpose for which it was not raised (litigation with no grounds, later dropped), authorized by the National Commander of the MOPH from Texas at the time. Has it been paid back?

Posted by: kristine oliver | Nov 16, 2007 12:02:56 AM

Most people never heard of MOPH (Military Order of Purple Hearts) the org that raises money to help veterens, but according to Paul Mons, it is just another org that represses, rather than benefits it's people, for political gain.

It seems that political aspirations have again superceeded the people.

We the people are not here to benefit and promote government and other orgs. They are formed by us to benefit us. Not to control, monitor, lie, steal and make us afraid.

If these abberations of corprotism and big gov continue we can only blame ourselves because they were created by us and may be dismantled and/or changed by us.

It's Showtime

Posted by: King Soulman | Nov 16, 2007 11:06:24 AM

Has the monies authorized by the MOPH to file a frivolous suit against a combat wounded of IL been paid back to the MOPH by the MOPH members authorizing use of donated funds? It's ashame that a few bad apples are spoiling the good name of the MOPH. The National commander must be investigated so we can get to the bottom of this matter.

Posted by: Alicia Ochoa | Nov 16, 2007 11:38:50 AM

I was reading the above comments and was reminded of a situation that requires further attention in Illinois regarding monies collected and used by VA representatives. This issue and its prompt reolution has the potential to impact countless families. TO better understand the problem it is essential to answer the questions, where are the Finance Budgets for the Dept. of Illinois from 2006-2008? And, where are the records for the allocation of budgetary funds for these years? Your attention to this matter would be greatly appreciated by the men and women who have dedicated their lives to the service of our country.

Posted by: Erin | Nov 18, 2007 9:12:13 AM

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