Wounded Warrior Foundation - scam?

[JNieman]

A war vet friend of mine has been anti-WWP for a long time, but today when it was brought up he posted a link to this recounting:
http://www.veteranstoday.com/2013/12/08/wounded-warriors-project-a-legal-scam/

I post this not to stir up **** or start a fight but rather to get more opinions and ask if anyone has first hand experience with this situation. Is this person being selective about the information revealed, not telling the whole story, or is the person pretty well accurate? I'd like to know, for sure.

I stopped giving any money to the Komen Foundation because of the ******** they pull and the proportion of money that actually goes to helping cancer research. I'm starting to side with my anti-WWP friend.

At a recent meeting of a veterans association with which I am involved, a suggestion was made that we contribute to *The Wounded Warriors Project* (WWP). As an officer of the association, I was asked to do some research and make a recommendation regarding contributing to WWP. As one who fervently believes that our wounded warriors and their care-giving families deserve our unqualified support, I also believe that the public should be informed of the appropriateness and effectiveness of charitable organizations that support veterans.
The results of my research are disappointing, to say the least. To summarize, the WWP collects a fee in the form of generous compensation paid to WWP executives who outsource fund raising, collection and distribution of funds to other 501.c.3 organizations which provide services that directly benefit veterans. The WWP would make Bernie Madoff proud!
My actual report follows for your information.
Sent: Friday, May 24, 2013 8:01 PM
Subject: Wounded Warrior Project
Pursuant to your request, I have reviewed the Wounded Warrior Project (WWP) FY 2011 Form 990 (copy attached). In addition, I have surveyed other available information pertaining to WWP.
I did note the pie chart percentages which you mention (Administrative Expense: 4.4%, Fundraising Exp.: 12.8%). Based on the WWP Form 990, these figures are misleading. Total 2011 revenues were $154.9 MM with total fundraising expenses of $20.5MM and total administrative expenses, including outsourced services, of $95.5MM. Note that the total administrative expense includes fund raising. Therefore, as a percentage of total revenue, administrative expenses amount to 61.63%, including fundraising expenses of 13.2%. This equates to 38.36% of revenues available to benefit wounded warriors.

As far as I can determine, WWP outsources all major functions, including fundraising, legal, donation processing, donation distribution, etc.
Compensation for the top ten WWP employees runs from $150K to $333K per officer annually.

As far as I can determine, WWP does little, if any, direct support of wounded warriors and wounded warrior programs. Rather, WWP makes grants and contributions to other 501.c.3 organizations which operate wounded warrior programs and/or serve veterans directly. Examples of 501.c.3 organizations receiving WWP funds include Fisher House, The American Red Cross, The VFW, Easter Seals, and numerous little known and unheard of local and national organizations.

<snip>

There is no question that WWP does contribute substantial funds for the benefit of wounded warriors. Notwithstanding, it appears that a more effective use of Association funds would be to contribute directly to The Fisher House, Navy-Marine Corps Relief, The Salvation Army, and others.
Attached below is IRS Form 990 revealing the perfidy of their spending (or lack thereof). Please, sir. May I have another parade?

IRS Form 990 (pdf warning)

 

[JNieman]

The facebook account for WWP posted a response in the comments I just noticed:

One would expect that if someone wants their information to be considered legitimate, it should be fact-checked and accurate. Nothing could be further from the truth with this article. The claim that WWP does little, if any, direct support of Wounded Warriors and Wounded Warrior programs is false. WWP has 19 direct programs and services such as Family Support Programs, Combat Stress Recovery Program and Transition Training Academy that veterans and their families participate in every day. The article also makes claims that based on our 2011 990, we spent $95 million on administrative and fundraising costs and less than 10% of donations actually reached wounded warriors. That is absolutely incorrect. If you actually read our 990 here http://www.woundedwarriorproject.org/media/477620/wwp-900-fy-2012.pdf, (page 10) you will see it reflects $95.5 million in TOTAL expenses including 69.5 million spent on our programs and services. Moreover, the IRS form 990 does not present a complete picture of donations and expenditures the way independently audited financials do, and it does nothing to measure impact. Based on Wounded Warrior Project's fiscal year 2012 audited financial statements, 81.6 percent of total expenditures goes directly to our 19 programs and services for Wounded Warriors and their families. We pride ourselves on being a leader in the industry in reporting results from our programs. You can visit: http://www.woundedwarriorproject.org/mission/who-we-serve.aspx to see the real impact we are making. For more on our strategy for growing and meeting the needs of this generation of wounded servicemembers, visit wwpinc.org/npt.

Bit of a wall-of-text but it just kind of muddies things a bit, to me. What's the deal?

 

[scooterj]

One of our pistol clubs held a match for charity and WWP was selected as the recipient of the raised funds. A check and small note describing who the money came from, was sent to WWP. A few days later, the check was returned with a note. The note said that they could not accept the money from a "gun" group.

 

[Vermiform]

One of our pistol clubs held a match for charity and WWP was selected as the recipient of the raised funds. A check and small note describing who the money came from, was sent to WWP. A few days later, the check was returned with a note. The note said that they could not accept the money from a "gun" group.

You wouldn't be able to get your hands on that note saying they do not accept money from gun groups would you? We've all been made aware of their refusal to co-brand with guns or gun groups but I've never heard of them turning down money from them. How long ago was this?

 

[bigtattoo79]

One of our pistol clubs held a match for charity and WWP was selected as the recipient of the raised funds. A check and small note describing who the money came from, was sent to WWP. A few days later, the check was returned with a note. The note said that they could not accept the money from a "gun" group.

WOW that is sad!!

 

[JNieman]

One of our pistol clubs held a match for charity and WWP was selected as the recipient of the raised funds. A check and small note describing who the money came from, was sent to WWP. A few days later, the check was returned with a note. The note said that they could not accept the money from a "gun" group.

Their stance to keep themselves separate from affiliation with gun-centric groups/speakers is well documented. However I don't care about that in regards to this topic. That's a whole separate issue from what I'm trying to find out.

I am curious about whether or not they are as irresponsible and wasteful with their funds as the writer alleges they are. If anyone else had done the research on this or knows of the alleged mismanagement or wasteful practices, I'd like to know about it.

 

[Pas Tout La]

Their financials are on their website. Pull them and run the numbers yourself. Here are some NFP formulas to use.

http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=48

On a side note, there are very few NFP's that are ran very effeciently. That's one reasn why officer compensation is so high. It takes a talented person to make these things work, and talent cost.

 

[Robhic]

Read about Toby Keith (spokesman for WWP) having restaurants that are anti-gun: https://www.facebook.com/BoycottTobyKeith so maybe that has some impact on this? The WWP's plastic cowboy hat-wearin' ninny-boy being anti 2nd Amendment being a factor?

 

[Jack]

Read about Toby Keith (spokesman for WWP) having restaurants that are anti-gun: https://www.facebook.com/BoycottTobyKeith so maybe that has some impact on this? The WWP's plastic cowboy hat-wearin' ninny-boy being anti 2nd Amendment being a factor?

Nobody is discussing the 2nd amendment here.

 

[JNieman]

Their financials are on their website. Pull them and run the numbers yourself. Here are some NFP formulas to use.

http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=48

On a side note, there are very few NFP's that are ran very effeciently. That's one reasn why officer compensation is so high. It takes a talented person to make these things work, and talent cost.

I am not good with accounting or money-computing. I'm good with physical-numbers. Dollar-numbers seem like a whole other ****ing numbering system as far as my brain works. I dunno. I thought I'd ask someone who might be better than I am at money-numbers to help me out.

Also, I agree with you on CEO compensation. I really don't have a problem with that. It would take a very special, very rare person who is capable of working somewhere with a $1mil compensation package, who would go work for a NFP for $50k. And I do understand, and agree, that the people with the skills to run such large and complicated organizations are the people who can demand the large paychecks. I don't have a problem with that. I have a problem with where the alleged money is being sent the proportions, if the interpretation by the author cited in the OP are truthy.

 

[TomTerrific]

WWP came up on the WW2 list I subscribe to as someone was going to send them a donation and heard much the same as is going on here.

Homes for our Troops was suggested as an alternative that got a lot more of its money to the people in need.

There are a number of charity monitors out there. One is http://www.charitynavigator.org/

You can compare Homes for our Troops with WW and the latter doesn't look as good. Fund raising expenses for WW are 36% of donations while Homes is 7%.

Homes takes in about ten percent of what WW does.

None of this means that WWP is a scam.

I tried to look up some of the charities who describe themselves as supporting law enforcement on the navigator site and I couldn't find them.

 

[Golden Dragon]

One of our pistol clubs held a match for charity and WWP was selected as the recipient of the raised funds. A check and small note describing who the money came from, was sent to WWP. A few days later, the check was returned with a note. The note said that they could not accept the money from a "gun" group.

Same thing happen with a big national 3 gun match.

 

[Emperor]

For what it's worth; Bill O'reily has openly advocated for WWP. He has openly stated WWP is a good charity where the money gets where it's going.

I would be shocked if WWP was only getting 36% of the money to the vets.

That said, I would genuinely like to know if there is any truth. I was/am getting ready to enroll my company with them.

 

[TomTerrific]

For what it's worth; Bill O'reily has openly advocated for WWP. He has openly stated WWP is a good charity where the money gets where it's going.

I would be shocked if WWP was only getting 36% of the money to the vets.

That said, I would genuinely like to know if there is any truth. I was/am getting ready to enroll my company with them.

I think you read it wrong if you are referring to my figures. The fund expenses are 36% of the take vs 7% for Homes.

WWP distributes 58% of its take while Homes distributes 85%.

I don't think we are discussing who is doing "good," but rather how much the organization uses for other purposes, many of which are legit.

If you give a buck to WWP, 58¢ gets to the program. 85¢ of that buck goes to the program in the other charity.

 

[Emperor]

I think you read it wrong if you are referring to my figures. The fund expenses are 36% of the take vs 7% for Homes.

WWP distributes 58% of its take while Homes distributes 85%.

I don't think we are discussing who is doing "good," but rather how much the organization uses for other purposes, many of which are legit.

If you give a buck to WWP, 58¢ gets to the program. 85¢ of that buck goes to the program in the other charity.

My bad!

I understand some of these charities have administrative expenses, but that seems excessive to me. So much for the "free" blanket!

But man, they sure make those commercials jerk some emotion.

 

[Leonidas]

Not so quick.

Look at their 2012 internal financials. The numbers were skewed by the fact that 60 million in 2012 donatons were still in the bank when the period ended. Added to the 20 million undistributed from the previous year, they've got 80 million in the bank. What will tell the tale is what is ultimately done with those funds. One has to assume that they have a legitimate plan for that. Their previous years numbers were fine.

When those funds are distribute theur administrative costs will indeed be under 20 percent, as claimed. Thats not a bad number for an organization of that size. While that is more than the 10 percent mentioned above, the extra 10 percent has made them far more productive in generating help for the warriors, on the basis of total gross, a very important number. Money wisely invested, in my book.

 

[Emperor]

Not so quick.

Look at their 2012 internal financials. The numbers were skewed by the fact that 60 million in 2012 donatons were still in the bank when the period ended. Added to the 20 million undistributed from the previous year, they've got 80 million in the bank. What will tell the tale is what is ultimately done with those funds. One has to assume that they have a legitimate plan for that. Their previous years numbers were fine.

When those funds are distribute theur administrative costs will indeed be under 20 percent, as claimed. Thats not a bad number for an organization of that size. While that is more than the 10 percent mentioned above, the extra 10 percent has made them far more productive in generating help for the warriors, on the basis of total gross, a very important number. Money wisely invested, in my book.

So I should go ahead and get my free blanket?

 

[Leonidas]

Okay, just spoke with Homes for Our Troops. An outstandung organization, doing great work.

2012 revenues were 17 million. Over 15 million distributed.

WWP's admin overhead of circa 20 percent is double HFOT's.

The extra 10 percent amounted to 20 million more, proportionally. For that sum, they received 145 million support for our warriors. That's in excess of a 700 percent return on the investment.

Certainly not fair grounds to challenge their efficiency, or their integrity.

 

[Leonidas]

So I should go ahead and get my free blanket?

Give enough to get a free bed!!

 

[Emperor]

Give enough to get a free bed!!

If it's any consolation, I am getting a free donut cushion from the federal government! They have taken till they prolapsed my colon!