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Failing to Serve America's Heroes on the Home Front

November 09, 2007 7:00 AM

Failingtoserv_mn In the last two years, generous Americans answering appeals to help wounded and paralyzed veterans have given more than $464 million to charities that have been given an F in a new report card from a leading charity watchdog group. 

Those failing charities include the National Veterans Services Fund, of Darien, Conn., which took in more than $6 million in contributions last year supposedly to help veterans' families.

It got a report grade of F from the American Institute of Philanthropy, which says the charity gave out only two percent of its money for charity.

Good Morning America Video: Veterans' Charities Fail to Make the Grade

"Veterans deserve better from America's charities," said Daniel Borochoff, the institute's president and ABC News consultant, who compiled his group's report card based on his analysis of the charity's financial data. While the charities' activities are not illegal, Borochoff says, "spending under 35 percent of your budget on actual bona fide charitable programs will get you an F grade."

Of the 27 military and veterans' charities reviewed by Borochoff's group, 13 were rated F, including the Amvets National Service Foundation, the Army Emergency Relief Fund, Freedom Alliance, the National Veterans Services Fund, the Military Order of the Purple Heart Services Foundation and the Paralyzed Veterans of America.

Iowa Sen. Charles Grassley, who has been investigating charities, called that an outrage.

"We owe the veterans a great deal, and this shows a lack of respect for what the veterans have fought for, our freedom," he told ABC News.

Click Here for Full Blotter Coverage.

But it has meant six-figure salaries and prosperous lifestyles for some of the people running the F-rated charities.

As the founder of a charity called Help Hospitalized Veterans, which distributes craft kits to veterans' hospitals, Roger Chapin of San Diego pays himself and his wife more than half a million dollars a year in salary.

Charity is his business. Over the last three decades, Chapin has created more than a dozen different charities for cancer, kids and veterans.

"He's a charity entrepreneur," Borochoff says. "He's very good at setting up charities that don't do so much charitable but bring in lots, lots of money."

Chapin's veterans' charity has produced slick promotional videos about the good they do, with a number of celebrity endorsements, including one from actor Dennis Franz, who starred in the ABC primetime drama "NYPD Blue."

But according to their analysis, the American Institute of Philanthropy says of the $70 million Help Hospitalized Veterans took in last year, only 31 percent went to the actual charitable cause. The rest was mainly overhead and fundraising costs, meaning a grade of F.

A spokesperson for Dennis Franz said he had no idea the charity gave so little to actual charity.

Chapin had agreed to be interviewed for our report but refused to sit down in front of the camera when he learned who would be doing the interview, ABC News' Brian Ross.

Chapin and some of the other heads of charities that got failing grades questioned Borochoff's analysis of their financial records. They also insist they provide an invaluable service, and it is the high cost of fundraising that eats up the money available for actual charity.

Iraq War veteran Paul Rieckhoff, executive director of Iraq and Afghanistan Veterans of America, told ABC News veterans deserve more.

"Veterans are not a place to make a buck. Veterans have served our country and have put their butts on the line, and they need these organizations to care for them when they come home," he said. "So if you're not serious about being in the business of helping veterans, go find something else to do."

And Rieckhoff encouraged all donors "to give but to think long and hard about it, and do a little research and find out who you're giving to so that you know your money's being used appropriately."

See the grades for all military and veterans charities rated by the American Institute of Philanthropy. (Copyrighted material is posted with the permission of the American Institute of Philanthropy.)

For more ratings on charities, go to the American Institute of Philanthropy's Web site.

Anna Schecter contributed to this report.

This post has been updated.

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November 9, 2007 | Permalink | User Comments (230)

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They are a disgrace.The Veterans sacrificed there lives and are not getting the funds due to them.The man in charge is living high on the hog,while the Vets miss out.Jail is to good for him.

Posted by: Phil Pecora | Nov 9, 2007 7:20:09 AM

This report disgusts me. I cannot believe the laws regarding starting charities and the small amount that is legal to be given. The laws should be changed!

Posted by: Val | Nov 9, 2007 7:23:21 AM

Veterans were heros after WW2 but came to regarded as burdens by the 1950's and it had only gotten worse. Veterans have served an ungrateful nation.

Posted by: Doug | Nov 9, 2007 7:23:25 AM

And to think I was giving to 3 of these F graded organizations. Thought I was helping my fellow vets, it's a disgrace. Now I will contribute only to those who are actually helping these veterans.

Posted by: Sam | Nov 9, 2007 7:24:12 AM

This was very informittive, there should be more investagations carry out on the so-called charities in this country. Please report on the better charities, so that more monies will be directed towards those in need. Thank you.

Posted by: Wilfred McGee | Nov 9, 2007 7:26:46 AM

Very Helpful. I'll cancel my pickup for AMVETS. How about Vietnam Veterans of America? I have a big bag of clothing ready for them.

Posted by: Beverly Ashley | Nov 9, 2007 7:27:48 AM

Do you have any information to:
Disabled American Veterans,in Cincinnati Ohio.

Thanks for your time , Frank

Posted by: Frank Goodwin | Nov 9, 2007 7:31:40 AM

Regarding veterans charities, I give to Disabled American Veterans. I did not see that one on your list. Hopeing they benefit from most. Thank you for opening our eyes regarding this matter.

Posted by: Kim Emond | Nov 9, 2007 7:32:19 AM

Excellent reporting.Now I know what organizations I should no longer contribute to.You should do this also for those organizations serving American Indian charities;abandoned children;etc.

Thanks for providing this most useful service.When they feel the pressure maybe some of those "F" rated groups will mend their way.

Rafael

Posted by: Rafael A Tprrens | Nov 9, 2007 7:33:53 AM

not only these charities should be looked into the VA should also. There are some Vet who are employees who being fire from there job instead of being help with there problem for being in iraq

Posted by: jon | Nov 9, 2007 7:35:51 AM

Could you supply me a complete Report Card so I do not contribute to the "less than reputable" charities soliciting our money. We believe the Vet's should be treated with the utmost respect for their outstanding contributions to keeping our nation free and safe.

Posted by: Jeff Peck | Nov 9, 2007 7:38:58 AM

I am a regular contributor to an organization called Disabled American Veterans, Cincinnati, Oh , and do not see them listed on your grading scale of f or a, where do they place, how about listing the grade for all 27 organizations that you have mentioned.
thanks

Posted by: don ezrin | Nov 9, 2007 7:39:42 AM

Am I Vietnam Vet, U.S.C.G., 1967 all I can say, from my own experiences, is the the 'charities' rip up off as bad as the government does! Bottomline folks is that neither the government nor the 'citizens' give a damn abt us after the war/s. Check out the high divorce rates & the unwilliness of companies to hire us after combat. Frankly 'merica is a sick joke. TKU.

Posted by: Craig M. Beck | Nov 9, 2007 7:40:09 AM

brian - thank you for exposing another massive scam victimizing all Americans. it seems as if the American moral fiber is slowly dwindling away over the last two decades. since when did we 'the people' elect to misspell our Lord GOD with an 'l' = 'gold'?? God Bless America and may HE forgive us for all we do in HIS NAME.

Posted by: gator balough | Nov 9, 2007 7:41:30 AM

After hearing your report this morning on GMA, I would hope that you could follow-up with a positive report from lesser known charities contributing 95% of donations to our returning wounded and disabled American Veterans.
Our non-profit, American Love and Appreciation Fund, Inc. dba Veteran Love has helped close to 100 servicemen and women and their families over the past 18 months. We pick up the slack when servicemembers cannot get their disability checks in a timely manner and go without income, therefore on the verge of eviction. We pay for plane tickets for parents or spouses to be with their loved one in the hospitals such as Tampa's James A. Haley VA.
Please consider highlighting those of us who do not take a salary directly from the organization and how we do provide direct support to our wounded and disabled American heroes.

Posted by: Charlene Riggs | Nov 9, 2007 7:47:36 AM

Do you know any rating for Disabled American Veterans out of Cincinnati OH?

Posted by: Susan G | Nov 9, 2007 7:47:38 AM

I have given to Disabled American Veterans for years. I did not see this on your report card. How did they rate?

Posted by: Teresa Bohannon | Nov 9, 2007 7:47:45 AM

Im SO Furious right now. I have gone through my own hell for the past two years since my husband (a navy Seal) was injured while at war and to hear and read the reports about these so called charitable organizations helping these soldiers makes me sick. These people need to go to war and come back to really appreciate what it feels like to be used the way these men and women have been. They live a properous life while these guys and girls struggle to somehow fit back into a world they left and will never be the same again. My husband received a Purple Heart among many other medals. He has had approx. 6 surgeries and another one on the way. He got addicted to all of the pain meds and had to go thru de-tox. He is never not in pain but has slowly worked his way out of his own hell and is coming back to the strong, competent, responsible, caring man he was before all of this. He loved his job and never regretted fighting for this country but to know that is so easily excused from so many so called proud to be Americans is disgusting.
If there is anything I can do to help in this cause or to help other injured soldiers and families please let me know. Im trying to be a catalyst for the wives when the husbands come home. You see in my husbands job the phone call that my friends have gotten were quite different. There husbands didn't come home. For some reason my call was different and I feel that if I can prepare anyone for what they might be in for I would love to help. Coming home is great but helping them thru it is a whole other story.
A Very Proud Wife of an American Soldier.
Linda

Posted by: Linda Rhimer | Nov 9, 2007 7:48:20 AM

Good start. I'll be real careful not to send money off to any of those on the 'F' list in the future. But what happened to all the charities which
got B-pluses and C-Minuses? Were there none of them? What are their names? It seems that your report, as presented, is missing quite a bit.

You get an 'incomplete'.

Posted by: Boat Man | Nov 9, 2007 7:51:53 AM

as a Amets' Aux. ember, I am appalled that so much money goes to the CEO's and other offical of the non-profit organizations in which you must have served in the military yourself to be a member. As ayx. members, you must have had family members that have served. I personally have 2 brothers, grandfather, brother-in-law, etc, and the only reason my father was not accepted was due to asthma. I volunteer a lot of time to the Amets myself but will not be sending any money to these org. that got an F on this list. I just rec. a donation letter from the par. vets which I will not be sending any more money. I personally think that all non-profit org. should base thir salaries to the average salary of their county--plus expenses and that all non-profit org. should only accept cks (no cash) so that they can better be audited. You are going a great job and I do appreciate your time and effort.

Posted by: Rhonda | Nov 9, 2007 7:55:37 AM

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