The American Institute of Philantrophy keeps track of various charitable organizations and provides grades of A+ though F based on their performance in converting donations into services.  In other words, an A+ would represent a charity that provides almost all of the donations they receive to actually support their declared program.   A F would represent a charity that uses very little of the donations they receive to the program they claim to support, typically less than 1/3.

They recently gave failing grades to 10 of the 27 veterans charities they evaluated. 

But first the Good, actually Excellent veterans charities need to be mentioned.  All the news articles I have read so far on this subject focus on the Ugly.  I want to make certain that you know that there are good ones out there too.   For example, the Fisher House Foundation and the Intrepid Fallen Heroes Fund are both rated A+.  Those are two of the four top rated veterans charities listed.  The National Military Family Association received an A and the American Services YMCA of the USA received an A-.    

I looked some of these up on another site, the Charity Navigator which also rates charities and provides data from the IRS filings for those they rate.   Much of the following data comes from them.

The Fisher House Foundation (A+) converts 95.6 cents of every dollar into services for veterans.   The foundation funds and builds “comfort houses” on the grounds of military bases and hospitals around the world so that family members can stay close to their loved ones who are serving their country.

The Intrepid Fallen Heroes Fund (A+) has raised 60 million in donations from the public  and 100% has gone to the program aiding families of these heroes.  All administrative expenses are paid by a separate foundation of donors.

Continuing with the Good: The Disabled American Veterans Charitable Service Trust collected 36M last year and converted 99.3 cents of every dollar into actual services.  The Navy-Marine Corps Relief Society is another good one converting 91 cents of every dollar into services.   The Special Operations Warrior Foundation converts 81.5 cents of every dollar into actual services.

Now a few of the  bad and ugly!     

Shiloh International Ministries collected 1M dollars, but spent on 3.5 % on services!

National Veterans Services Fund, Inc. collected 5M but spent only 17.7 % on services

Disabled Veterans Associations collected 5M but spent only 28.2 % on services.

NOTE:  Don’t confuse the DVA with the similarly named Disabled American Veterans Charitable Service Trust, one of the good guys which collected 36M and provided 99.3% services for the money!

One of the larger charities mentioned by the American Institute of Philantrophy report was The American Veterans Relief Foundation.  According to a Fox news report, for every $100 contributed, only $16 ended up going to veterans and $84 was spent on operations expenses, such as salaries and marketing.

The Veterans of Foreign Wars  received a C- and the USO received only a  C+.

Congressional Hearings

The charities’ practices have sparked outrage among some members of Congress.   The House Committee on Oversight and Government Reform held its first hearing on veterans charities Thursday morning.

AIP’s President Daniel Borochoff testified as to why so many of the nonprofits failed to receive passing marks for their efficiency in raising funds and getting it to those who need it.  See a video report here.

“Right now, there’s incredible waste out there and it’s being done in the name of our noble veterans,” Borochoff said.   He said that many of the veterans’ philanthropies raise money using for-profit groups hired to do direct mail or telemarketing campaigns that solicit donors indiscriminately, rather than targeting those more likely to give.

The problem is even more significant because some 200,000 veterans - or about a third of the entire adult homeless population - are living on the streets, according to the AIP.

“A huge percentage of our homeless are veterans,” said AIP analyst Laurie Styron. “There’s a lot of need for veterans out there.”

“The biggest concern is just how highly inefficient many of the veterans’ groups tend to be,” Styron said. “It’s a highly popular cause. It’s a cause that’s easy to raise money for because it tugs at the heartstrings. It’s easy to guilt people into giving.”

Watch This ABC NEWS VIDEO:

 AIP President Daniel Borochoff Discusses Veterans Charities on National Network TV

Oldtimer says:

 Look it up before you give!

Please Give, but give wisely!