Veterans' Charity Boss Rebuffs Critics

Entrepreneur Accused Of Mismanaging Charities He Started For Vets And Enriching Himself

(CBS/AP)  The head of a California-based veterans charity rebuffed accusations of mismanagement and self-dealing at a raucous congressional hearing Thursday, shouting over lawmakers to declare himself "the most honest person in this room."

"I may be the only guy in the whole cotton-picking nonprofit establishment who's willing to tell it as it is!" asserted Roger Chapin, president of Help Hospitalized Veterans of Winchester, Calif. He argued that fundraising costs for charities like his are much higher than some watchdog groups claim, leaving less for veterans than he would like.

Rep. Henry Waxman, chairman of the House Government Reform and Oversight Committee, was unmoved.

"It's unethical, it's wrong, it's really a fraud against Americans who agree to give you their hard-earned dollars," said Waxman, D-Calif.

Waxman had subpoenaed Chapin to testify after the businessman evaded a subpoena for an earlier hearing that found problems with management of veterans' charities nationally. The charities are benefiting as Americans eager to help troops in wartime open their wallets, but some use questionable accounting methods and spend more on raising money than on helping veterans, some watchdog groups claim.

Chapin's charity rates an "F" from one watchdog group for spending just 25 cents of every donated dollar on vets, mostly for craft kits, reports CBS News correspondent Sharyl Attkisson.

The American Veterans Coalition, American Veterans Relief Foundation and Disabled Veterans Association - groups not associated with Chapin - all spent more than 75 percent of their revenues on fundraising rather than on veterans, according to the committee's earlier findings. The recommended standard for charities is to spend around one-third of revenue on fundraising.

Waxman said Chapin had given veterans only 25 percent of nearly $170 million raised from 2004-2006 through charities he runs. The rest was spent on fundraising and more than $1.5 million in compensation for Chapin and his wife along with $340,000 more to reimburse the couple for hotels, restaurants and other expenses.

There were other questionable costs including $17,000 on a country club membership so board members could golf, a condo, loans to business associates, and $100,000 paid to Gen. Tommy Franks who allowed his name to be used on fundraising appeals.

Franks has since distanced himself from Chapin and his enterprises, Chapin acknowledged.

Donations of $135,000 have also been used to help an executive settle his divorce, reports Attkisson.

Chapin, 75, said his expenses were reasonable and his compensation comparable to others in his field. He said that with different but accepted accounting methods and including the market value of leather-working "craft kits" and other items, Help Hospitalized Veterans actually gives 67 percent of its revenues to veterans.

"Throughout my life I have endeavored to do well for my family while I try and do some good in this world," he insisted. Balding and thin, Chapin put on glasses to read from his notes but kept up an energetic stream of retorts.

He resisted calls from lawmakers to disclose to donors that just a small fraction of money was actually going to veterans.

"If we'd disclose, we'd all be out of business - no one would donate!" Chapin said.

Belinda Johns, senior assistant attorney general for California, testified that Chapin's spending raised questions and said her office would take a look at it.

A principal beneficiary of Chapin's spending has been Richard Viguerie, a Virginia conservative activist and direct-mail expert. Viguerie was paid $14 million from 2000-2005 by Chapin's charities to send fundraising appeals, according to committee research.

In his own testimony, Viguerie denounced the committee's proceedings as "political, anticompetitive, unconstitutional and, if I may be frank, mean."

Some Republicans rose to Chapin's defense.

"I'm deeply concerned that we're whacking on groups that are supporting the military," said Rep. Chris Cannon, R-Utah.

Chapin has started more than a dozen charities over the years, some focused on veterans and military issues but others on disparate causes including Alzheimer's research and drug addiction. The mission of Help Hospitalized Veterans is donating "craft kits" and in some cases computers to homebound and hospitalized veterans, and employing "Craft Care Specialists" who help veterans select and complete their craft kits.

Help Hospitalized Veterans provided 752,878 craft kits in 2006 - leather working is the most popular - along with 296 computers and 101 WebTV Internet systems, according to Chapin.

The group says it's been honored with the Department of Veterans Affairs Secretary's Award. In a statement Wednesday the V.A. called Help Hospitalized Veterans "one of many valued co-sponsors" of the V.A.'s national rehabilitation event and also said Help Hospitalized Veterans has sponsored its creative arts festival.

Chapin also runs Coalition to Salute America's Heroes Foundation and Help Wounded Heroes, Inc.

[pakaal]

I''m sure most folks here complaining are doing so because they give generously to nonprofits and want to see their dollars actually going to where they''re supposed to. For anyone who wants to check before giving, try the Charity Navigator. Thorough breakdown of nonprofit spending, percentages that actually go to programs, etc.

http://www.charitynavigator.org/?gclid=CLH8x_Czg5ECFQh6gwodXzcOFQ

[rebl4ce]

Chapin flaunts his wrongdoings, and congress shakes their heads, but they want to put baseball players in jail for steroids. Baseball players hurt themselves, Chapin is hurting millions, and they say its legal. I just shake my head. Legal theft????

[uhavnoidea]

Folks:

This is only one small fraction of what really was happening behind the curtain. It will all come out... as disgusting as the truth really is.

Promise

[keith.butler]

Lemme get this straight... After somebody''s son, daughter, mother, brother, etc. gets their body parts blown to hell, their brains scrambled like eggs and their psyche/personality turned towards "violence is the way" we give them a kit to make a leather belt or boondoggle, assisted by a specially trained "Craft Specialist" while the giver of this kit takes at least 75% of the money for himself, his wife, and other parasites who live off the troubles of others.

Here''s a thought... Fire them all, collect the money and just give it to the vets!. Since they probably lost their jobs when they went to Iraq, along with their families, I am sure the direct money would be of much greater assistance.

[frankbowers]

While in the VA Hospital in Temple, TX his group were passing out the raw products to make belts and shoes of some nature. They must have cost about a quarter or .30 cents at the most I wonder how much he billed them as costing. I did not take anything as it was junk that most would throw away and never use.
I hope IRS look at the expense as well they seem a little high then take him out back and shoot him as a sick dog would be shot. The best of good byes Frank Bowers in Austin, TX

[crudeeverude]

People like Chapin are carrion eaters. They live off the rotting flesh of good intention.
I''d be surprised if congress raises an eyebrow.
I''m sure that a portion of those funds are used to pad the pockets of some politicians. The fools that give blindly should be taken.

The IRS should be all over these guys.

[ramos937]

I agree with dakotaclark. Roger Chapin and cronies are performing a fraud on the vets and the American public. They are doing it because we let them. Several
things could stop them. The media, including Consumer Reports, should run stories on this scandal. The IRS should revoke their tax exempt status, etc. Mostly charges should be brought. Even if we fail to convict, this will put folks like this out of business.

As to Franks - He has betrayed his honor and his fellow military folks. At every military event he attends, the folks there should just rise and turn their backs to him. Perhaps he will then contribute the $100,000 to a legitimate vet group?

[ioweign]

Do your research. It disappoints me that we have men like Waxman that are so starved for political attention that they publicly attack groups like this and others that do a lot of good in the world. Just visit a VA center and you would change your mind quickly. Biased, political, unfair... typical CBS story.


Posted by rocketeer11 at 10:40 PM : Jan 17, 2008


You just haven''t seen Congress do it''s job. You haven''t seen oversight for so long it must be a shock to your system !!

[rocketeer11]

Do your research. It disappoints me that we have men like Waxman that are so starved for political attention that they publicly attack groups like this and others that do a lot of good in the world. Just visit a VA center and you would change your mind quickly. Biased, political, unfair... typical CBS story.

[rocketeer11]

Do your research. It disappoints me that we have men like Waxman that are so starved for political attention that they publicly attack groups like this and others that do a lot of good in the world. Just visit a VA center and you would change your mind quickly. Biased, political, unfair... typical CBS story.