May 24, 2012
Congress Investigates Veterans Charity
With facts strikingly similar to those in the United Cancer Council case, the Disabled Veterans National Foundation is being investigated by the Senate Finance Committee to determine whether it should remain a tax-exempt charity under Section 501(c)(3) of the Internal Revenue Code. According to a CNN article, its own investigation of the charity as part of "AC360's" "Keeping Them Honest" series led to the Committee's action on Wednesday. According to CNN's review of the charity's records, only a small amount (reportedly as low as 2%-12%) of the approximately $56 million raised by the charity over the last 3 years has gone to directly assist veterans. In that same period according to Forms 990, the Foundation paid nearly $61 million to a large direct-mail firm, Quadriga Art and its subsidiaries, which caters to nonprofits and charitable organizations. CharityWatch, a large charity oversight organization, has awarded the Foundation an "F" grade since 2010 because of the small amount of fundraising dollars that actually reach veterans.
According to the CNN article, the Foundation joins more than 30 other charities tailored to veterans that have been given failing grades by CharityWatch due primarily to the small amount of expenditures actually spent on their veteran recipients.
TrackBack URL for this entry:
Listed below are links to weblogs that reference Congress Investigates Veterans Charity: