“You’re using our injuries, our darkest days, our hardships, to make money. So you can have these big parties.”
So says one former Wounded Warrior Project member who quit the organization after seeing lavish spending on conferences and events. What sort of spending? They went from spending (squandering?) $1.74 million in 2010 to $26+ million in 2014. How’s that for a great use of your donations?
At one time we were a fan of Wounded Warrior Project. No longer.
We’ve detailed previous reports of Wounded Warrior Project being described as a “legal scam”. (In fairness, after being sued by WWP, the author of that Wounded Warrior Project A Legal Scam story has retracted his statements about WWP).
“WWP does not co-brand, create cause marketing campaigns or receive a percentage or a portion of proceeds from companies in which the product or message is sexual, political or religious in nature, or from alcohol or firearms companies.”
Here’s their latest Form 990 for their fiscal year from October 2013 to September 2014.
$26,054,363 on conferences, meetings and conventions?!?
“…programs and services to our warriors and their families and the highest quality.”
“The reason we’re providing those ‘All Hands’ conferences…”
“…is to ensure that we’re aligned”
“…and able to build as a team…”
“and to be aligned with the best possible programs.”
Compen$ation. Generou$ compen$ation: An average of $83,613 per employee.
There’s $30.2 million spent on compensation. It takes big bucks to keep that Wounded Warrior Machine running smoothly.
Their head honcho, Steven Nardizzi, got himself a generous pay raise to $473,015 plus an additional $23,400 in other compensation. Imagine getting paid a half-million dollars a year to run a charity that’s supposed to help wounded warriors. I’m not sure how this guy sleeps at night.
They have 481 employees and their average employee is paid $83,613.
And 54 cents.
$43.4 million spent on Fundrai$ing
And then there’s the $43.4 million spent on fundraising – that’s 13.9% of their income – more than they spend on grants to help veterans!
But that fundraising number is tricky, and here’s why. Wounded Warrior Project, like many big charities, uses something called “Joint Cost Allocation”(JCO) to “re-allocate” expenses to other categories “legitimately”.
One common technique under JCO is to write off certain fundraising expenses as “public education” instead of fundraising. Here’s how it works. If 95% of the content of the fundraising mailer is spent describing WWP and its mission, then under Joint Cost Allocation, 95% of the cost of that entire fundraising mailing can be itemized under “Public Education” (teaching the public about WWP) instead of fundraising.
Good news. Grants are up to 13.5% of income!
The good news is that they’ve increased their spending on grants from 3.7% of income in 2011, to 13.5% in 2014. That’s quite an increase, but it still leaves 86.5% of their income being directed elsewhere.
Legal pit bulls
There’s the 1.4 million spent on legal fees. Yes, they have legal bills. Why? Read on…
‘Wounded Warrior’ Charity Unleashes Hell—On Other Veteran Groups
(Daily Beast) – What happens when a nonprofit that was started to help veterans becomes the neighborhood bully?
For a charity supposedly devoted to helping veterans, the Wounded Warrior Project spends an enormous amount of time suing or threatening to sue small nonprofits—spending resources on litigation that could otherwise be spent on the vets they profess to serve.
At issue is the Wounded Warrior Project’s brand: The charity has become particularly litigious over the use of the phrase “wounded warrior” or logos that involve silhouetted soldiers. At least seven such charities have discussed their legal problems with The Daily Beast.
Yes, indeed. I’m tangentially involved with a local group that helps disabled veterans. When a newspaper article mentioned that the local group helps “wounded warriors” guess who sent a nasty letter from their legal department?
The “wounded warriors” verbiage was a term the reporter came up with since the local people are careful not to use those words because frankly, among a whole lot of wounded warriors, the Wounded Warrior Project’s name is mud – to be kind. The local group wants nothing to do with the negative mojo associated with Mr. $473,015 Steve Nardizzi’s group.
Yes, if you guessed the letter came from WWP, you win a Snicker’s bar. They sent a letter to the group – as I understand it – threatening legal action if the group continued to describe the people they help as ‘wounded warriors’.
I no fan of Justin Bieber, but his new song, “LOVE YOURSELF” comes to mind.
Specifically the lyrics: “You should go and love yourself.” That’s a very kind way to express how we (and I include people at this local charity with myself in this) feel about the WWP, especially after receiving that letter.
Selling donor data
And they sell donors’ personal information too!
‘Wounded Warrior’ Charity Fights—To Get Rich
(Daily Beast) – …And in another twist, the charity is repackaging givers’ personal information and selling it off to third parties, making more than $1 million in the process.
The renting of private information is a betrayal of donors, argues Sandra Miniutti, the vice president of Charity Navigator, a group that rates nonprofits. “When a donor gives to you there’s a level of trust, that you’re going to repay that with respect, that together you’re working to make the world a better place, and that [the charity is] not going to flip and sell my personal information,” she said.
A top official for a another large veterans nonprofit was aghast when informed about the practice. “We have never rented out, sold, or shared our donor list,” said the official, who spoke on the condition of anonymity. “Our donors would kill us if we did that…I can’t believe their big, midsize, and small donors would be too happy with that.”
Nardizzi’s group not only engages in the selling of donor information, but he’s apparently proud of it, brazenly arguing in its favor.
The practice reflects a broader, self-serving philosophy that is being employed at his organization: higher revenue at high cost, churning growth at high cost. Good for direct marketers, good for executives—but how good exactly for veterans?
Marc Owens, a former director of tax exempt organizations at the IRS, reviewed the Wounded Warrior Project’s tax documents at the request of CBS News. He was asked what was his biggest concern in the numbers.
“I couldn’t tell the number of people that were assisted. I thought that was truly unusual. If the organization is asking for money and purportedly spending money to assist veterans, and talking about it, I would like to know,” said Owens.
…The CEO has said that the fundraising should and can be included in the programs and services.
“I’d be curious to know how asking people for money equates to the assistance of wounded veterans,” responded Owens.
Here’s what I think of Wounded Warriors. This was my shirt that I wore as (then-) President of Guns Save Life at more than one public event. It had a little combustibility problem shortly after I heard Wounded Warrior Project bigshot Steve Nardizzi say that gun owner money wasn’t welcome at WWP.
Consider this photo public domain for use by anyone, anywhere.
Dear Wounded Warriors Project: You should go and love yourself.
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