Are Charities Shortchanging Veterans?

People donate millions each year for wounded soldiers like Eric Edmundson and their families. But today Congress said too little of the money gets to vets, CBS News investigative reporter Sharyl Attkisson reports.

"A lot of the groups are able to make themselves look good and appear as if most of the money is going to charitable programs when, in fact, that is not the case at all," said Daniel Borochoff of the American Institute of Philanthropy.

A new watchdog report rates 27 veterans' charities - and gives more than half "D's" or "F's." That includes big names like the Blinded Veterans Association, which got a "D," the Disabled American Vets, also awarded a "D," and Paralyzed Veterans of America, which was given an "F."

Robert Friend heads the American Veterans Coalition, which gets an "F." It didn't give a penny of what it raised to veterans in 2003, and hasn't done much better since.

But the group's fundraisers? They pocketed more than $800,000, and Rep. Chris Shays, R-Ct., called it "B.S."

"I think it's a rip-off to the public and I think you're in business just to make money," Shays said.

And Robert Friend, of the American Veterans Coalition, said: "Unless our numbers can start to prove otherwise, then I would agree with you."

Another "F" goes to "Help Hospitalized Veterans," which gives craft kits for injured soldiers, but keeps most of what it raises for expenses.

According to tax forms, the group's head, Roger Chapin, gets more than $400,000 in salary and benefits. His wife pulls in six figures, too.

When Congress tried to subpoena Chapin for the hearing, even U.S. Marshals couldn't find him.

"For the last week, Mr. Chapin has gone into hiding," Rep. Henry Waxman said.

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Couric & Co. blog: Giving 'Til It Hurts

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The father of Eric Edmundson, who was wounded on patrol by a roadside bomb, today got the chance to see some of the charity tax forms.

"The first thing that goes through my mind when I read this type of thing … is anger," Ed Edmundson said.

Not all charities flunked out. A-pluses went to Fisher House Foundation and Intrepid Fallen Heroes Fund.

How they spend money not only impacts donors, but all taxpayers. The groups get billions of dollars in tax breaks and government grants - which is why Congress is talking about coming up with new requirements, so when you give, you really know how your money is spent.

[russm1965]

As President of SOVB (Southern Oregon Veterans Benefit) our organization has helped thousands of veterans over the past 8 years since it became a 501 (c)(3). None of our proceeds are used to pay members. If a member pays out of pocket for things that are needed for our organization, then and only then are they reimbursed for their expenses? This is a huge problem that we have seen since more and more non-profits have been developed and supposedly are out there to help veterans and their families throughout the nation. I'm very disappointed knowing we have several non-profit organizations accepting donations and grants and less then 25 % is being used to help people. Here is a web site you can check showing charity programs and how much is being used for veterans and assist other families in different states, www.oregonattorneygeneral.gov. People can also visit our non-profit by going to www.sovb.org and read how we use our dollars for veterans. Thank You.

[alamogeezer]

The Vet''s charities ratings doesn ''t tell the whole story of what traditional veterans organizations do for the military veteran. They spend untold thousands of dollars searching for data and assisting military veterans file claims with the Veterans Administration. They spend huge amounts of money directely assisting veterans for housing, medical care and FOOD! I wonder if the charity watch dogs have any idea of the programs of these organizations and the related costs associated with their programs. I am a VOLUNTEER veterans service officer who assists veterans without any renumeration. I belong to the American Legion, AMVETS, DAV, VVA and the VFW.

[concerned_2]

I found it disgusting that my neighbor which happens to be a veteran drives 99 miles to the VA Hospital & when he gets his mileage check for his expenses... he gets barely over $4. The rest goes to the government who in turn turns it over to support the VA Hospitals.
He & I both called to ask why the meager amount. They said it is his travel Co-Pay. Sorry to call the US Government cheap. But they are! He is an 80 year old Veteran that is expected to drive 99 miles with todays gasoline prices for a mere $4 to cover his expenses. Get Real.... That''s another form of Veteran / Elder Abuse.

[kiskis1]

Sunday is the day targeted by GOP presidential candidate Ron Paul''s supporters for another fundraising push.



So, I''ll be sending my money in on Sunday for the simple reason Ron Paul is an honest man among charlatans and power seekers. And he gives me hope when it is in short supply.

It is also fun to think of what a Paul administration would do if the establishment allowed him to get that far.

Hope, truth and justice are in short supply in what is now the United States. When they are offered, they should be grabbed and protected like the rare treasures they have become. Ron Paul offers those things.

Certainly it is another David and Goliath struggle, and the Davids have rarely won since the original face-off. But, that is why we have hope.

[abhudson1]

I am suspect of this report and the article. It costs $40 just to get it. I checked out AMVETS website and they are refuting the article as are Paralyzed Vets.
The author of today%u2019s Washington Post article, %u201CStudy Faults Charities for Veterans,%u201D has unfortunately, chosen to reiterate erroneous information concerning the AMVETS National Service Foundation and other reputable service organizations use of questionable statistics.
Citing the research of Daniel Borochoff of the American Institute of Philanthropy, the report gives the AMVETS National Service Foundation a failing grade for allegedly spending less than 35 percent of its charitable donations on "bona fide charitable programs." However, the AMVETS National Service Foundation%u2019s 2005 Form 990 on file with the Internal Revenue Service, which is a matter of public record, clearly states the Foundation spent 77.2 percent of all contributions on programs directly benefiting our veterans. In fact, the AIP itself only returned 70.7 percent of its public support revenue to programs in 2005, according to its own 990 filed with the IRS. The AIP only offers high marks to charities spending more than 75 percent on programs, and fails to appear in its own online charity rating guide.
Borochoff, who provided the ratings for the Washington Post and earlier reports, has not yet responded to an AMVETS query about the AIP%u2019s rating system.

[paradad-2009]

In the Rocky Mountain region of Colorado, Montana, Utah, and Wyoming there is but one office, in Denver. There is no PVA presence in the outlying states. On their website they claim to be seeking a "Field Representative" for those states, but the truth is, there is no such position. Recent efforts to establish an advocacy in one of those states has resulted in the chapter president terminating the entire outreach program for some reason. I wonder then, how many other chapters claim to represent all of their members, and how many actually do.

[detoher]

Please publish a list of the organizations and tell us what is done with the money.

[bomingo]

What, you folks are surprised? Give me a break. These so called charity organizations make millions. I know first hand because I worked for one of them. I''m here to tell you straight out, that the majority of the money they bring in goes for conventions, unbelieveable salaries, building funds, office furniture, etc, etc. Helping the veteran is at the bottome of the list, and then you top it off with tax exempt staus because they are a "CHARITY".

[grammawhamma]

I view organized professional fund raisers in the same light that I view organized religious groups...most of them tug at your heartstrings and run off with your money.

I donated a small amount of money (all that I could afford at the time) to the humane society when hurricane Katrina struck for pet rescues. Since then I have received numerous "gifts" in the mail like calenders, stationary, greeting cards etc. I know they have now spent more money on recruiting me to donate more $$ then I originally sent them and it will more then likely continue for years to come.

I would suggest donating your charity to local groups ...and not to a big organization.

[bgstine]

Unless it is a very similar sounding name, I believe one of your groups that received an "F" - Paralyzed Veterans of America - ran a full-page ad in USA Today Monday or Tuesday.

I%u2019ve heard those ads are $150,000 each