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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)

User Comments

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What about the rest, example, I donate to the Disabled American Veterans, where do they rate?

I would like to see the whole list, could you direct me to a web site that rates all charities? Not just the veteran charities?

Thanks,

Duane

Posted by: Duane Southworth | Nov 9, 2007 7:57:52 AM

I find it disgusting and criminal when an organization can call itself a charity when only giving one half of 1% of its earnings to the very people it purports to serve!

Posted by: greg | Nov 9, 2007 8:05:36 AM

YOU MENTIONED THE 13 THAT FAILED. DOES THAT MEAN ALL THE OTHERS (NON VETERAN)ARE IN GOOD STANDING? FOR ARGUEMENT SAKE - AMERICAN CANCER SOCIETY, AMERICAN HEART ASSOCIATION.

PERHAPS ITS BEST WE STOP SENDING TO ALL CHARITIES OTHER THAN ST.JUDES RESEARCH HOSPITAL FOR CHILDREN?

Posted by: MARION DORSKIND | Nov 9, 2007 8:10:30 AM

Now that the the media has once again exposed the "Evil Doers", and gain their points for doing so; will these charities be shut down? Will the lawyers and attorneys who set these money making operations up based on the laws and codes passed by our legislaters at the request of their big doners, be condemmed? I doubt that.

Will the serious doners continue to be taxed for donations beyond the limits set by Congress to bleed the rich in the name of true equality in our nation be addressed?

I doubt it.

Posted by: Patrick N. Collier | Nov 9, 2007 8:10:52 AM

PLEASE PROVIDE A FULL LIST OF CHARITIES.
I GIVE TO MANY AND WOULD LIKE MORE INFO.

THANK YOU

Posted by: ELLEN | Nov 9, 2007 8:11:25 AM

I also donate, regularly, to DAV and would like to know how they rated.

Posted by: Andrew P. | Nov 9, 2007 8:13:00 AM

The web-site Give.org evaluates and reports on chartitable organizations.

Posted by: Dave Williams | Nov 9, 2007 8:18:23 AM

I also donate to Disabled American Veterans, now I'm wondering where my money goes?? Thanks, karen

Posted by: Karen | Nov 9, 2007 8:18:40 AM

I would also like to have additional charity information, since I've sent to other charities and am real concerned. Thank you and keep up the good work.

Posted by: kim | Nov 9, 2007 8:21:58 AM

Dear Brian et al. In the interest of an informed electorate I should like to point out a few facts that you may want to re-iterate for your viewers. Re: Rudy Guiliani. There are those who think Traditional Catholicism is dead. Let me assure you it is not. Guiliani , an adulterer who openly defies the teachings of his Faith, but still expects members of that Faith to vote for him. He's a leftist , apostate Catholic. His record ,as federal prosecutor for which he openly brags merits some scrutiny. Remember Michael Milkin ? Well Guiliani railroaded him for crimes he did not commit. As columnist Paul Craig Roberts reported, " Giuliani was unknown and looking for name recognition and staged a storm trooper assault on the financial firm Princeton/Newport, involving 50 Federal marshals with automatic weapons and bulletproof vests. " Perhaps you can remember his having 2 NY investment bankers hauled off their trading floor in handcuffs. These 2 had done nothing and were later exonerated. Amazingly, nothing was done to Guiliani fo this misconduct. Guiliani has turned New York into a sanctuary for illegal immigrants. Reported by Heather MacDonald, he went to the US Supreme court to fight a federal ukase, passed in 1996, that said cities could not forbid their employees from helping the Immigration and Naturalization Service. He lost in court but remained defiant to the end. On Sept. 5 2001 his handpicked charter-revision committee ruled that N.Y. could still require that its employees keep immigration information confidential to preserve trust between immigrants and government. Only six days later, several visa-overstayers participated in the most devastating attack on the city and country in history " I could go on and on, about his record of ignoring the tenets of the Catholic Faith. For instance, unlike other adulterers who marry after a divorce, Guiliani openly carried on his scandalous public behaviour in front of his constituents but by way of the national news media , he paraded his conduct of carnal activities in detail.
I have held off on Hillary Clinton, but intend with your permission to write you , detailing why I think she should never be considered for the Presidency... Thank you for your time.

Posted by: T C Swan | Nov 9, 2007 8:22:11 AM

There is only one way to fix this...the government needs to regulate the minimum % amount required for donation in order for a business to be called a "charity" and the maximum income a charity owner can claim. I work with a veteran's organization that raises funds for scholarships and 100% of our profit goes toward the scholarships. Each and every one of our members volunteers their time and money to make sure monies get raised and go to the correct place. Each of us can go to bed at night with a clear conscience. They should be ashamed of themselves--SHUT THEM DOWN!!!

Posted by: Kathy T. | Nov 9, 2007 8:23:16 AM

I too, would love to see the rest of the list as I am a LIFE MEMBER in 3 Veterans Organizations and the list has already mentioned TWO of them.Happy Veterans day to me. I'm glad my 90% disability for wounds from Vietnam means so much to the people running these..."organizations" No more $ from me.
Semper Fidelis

Posted by: Paul Norton | Nov 9, 2007 8:24:18 AM

Like Duane S., I would also like to know a site that rates all charities.

Thank you and keep up the good work.

Loss Retired US Air Force

Posted by: Loss White | Nov 9, 2007 8:25:21 AM

I understand the neglect of charities giving what they receive, but why are we not looking into the government to see why THEY are not taking care of our veterans. The Government is the reason the vets are how they are, not the charities.

Posted by: MK Byers | Nov 9, 2007 8:27:18 AM

I find it disgusting that these organizations can call themselves charities when they are taking advantage of the individuals they purportedly serve. American veterans deserve the best service is possible and every American should be outraged with the outcome of the story.

Posted by: greg | Nov 9, 2007 8:28:22 AM

My husband served in WWI and one son in Vietnam. We support several veterans' organizations and I, too, would like to see the complete list and how each organization rates.

Thanx.

Posted by: Karen Smith | Nov 9, 2007 8:30:35 AM

Just like Duane we donate to the Disabled American Vets. If this is a good or bad operation no one knows from your report. I wonder how many people will stop donating because of your incomplete report???? Don

Posted by: Don | Nov 9, 2007 8:32:19 AM

I donate to charitable programs as part of the American Legion and VFW organizations. My donations are supposed to go to veteran's organizations. How does the American Legion and VFW rate?

Posted by: John | Nov 9, 2007 8:33:00 AM

Just like Duane we donate to the Disabled American Vets. If this is a good or bad operation no one knows from your report. I wonder how many people will stop donating because of your incomplete report???? Don

Posted by: Don | Nov 9, 2007 8:33:01 AM

I, too, donate every month to the Disabled American Veterans and would like to know where they rate also.

Thanks,
Lisa

Posted by: Lisa | Nov 9, 2007 8:33:15 AM

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