But I am concerned about our ability to meet our obligations in the future.. Kurnyta noted the organization had a near-perfect score in transparency: 97 out of 100. The Better Business Bureau (BBB) Wise Giving Alliance report found that spending was consistent with its programs and missions,clearing WWP of scandal accusations. They don't get that from Wounded Warrior Project," a former employee said. Anyone can read what you share. Last week, a major donor to the Wounded Warrior Project veterans charity called for the nonprofits CEO to resign in light of allegations of lavish spending on staff meetings, CBS News reported. "So when I saw what was going on in the media, I was, believe it or not, automatically attracted to try and help.". He . U.S. CBS News investigates Wounded Warrior Project By Chip Reid, Jennifer Janisch Updated on: March 10, 2016 / 8:21 PM / CBS News In a three-part investigation, CBS News looked into the. Take that out, and the figures look more like what charity watchdogs say that only 54 to 60% of donations go to help wounded service members. U9 Project Management. Wounded Warrior Project declined CBS News' interview requests for Nardizzi in January, but instead sent Director of Alumni and a recipient of their services, Captain Ryan Kules, who denied there was excessive spending on conferences. Today, we provide direct support to nearly 250,000 warriors, families, and caregivers. Wounded Warrior Project rocked by fundraising scandal. This organization is separate and distinct from the Wounded Warrior entities . While the organization keeps a rating of three out of four stars, the numerical score reflects marginal improvements in program expense growth, Magdalena Kurnyta, a Charity Navigator associate program analyst, told Military.com. The Wounded Warrior Project said the alleged activity has caused well-meaning supporters to second-guess their giving practices. Acknowledged to operate with efficiency, transparency, and accountability. "I find it frustrating when you see these solicitations, and they ask you to help a needy veteran, and you look into the finance and see most of the money is actually being spent educating the public that injured veterans have needs, rather than meeting the needs.". Many of those former staffers believe that after raising more than a billion dollars since 2003, the charity should be providing more comprehensive services to wounded veterans. But in Part 1 of the CBS News investigation, Army Staff Sergeant Erick Millette and former WWP employee said the charity is not living up to its mission. SVA leaders joined WWP at the White House in April for the latter organization's 12th annual warrior ride. Follow her on Twitter at @HopeSeck. WWP proudly provides free services and support to hundreds of thousands of post-9/11 veterans, families, and caregivers. "When TAPS contacted us a few years back to say the majority of active-duty deaths they were seeing were suicides and rare cancers that young people should not be getting, we started investigating and funding," Plenzler said in an email. Besides devastating both donors and wounded veterans, this news could undercut public support for the nonprofit sector as a whole. Anthony Odierno, the chairman of the charity's board, is now . For Linnington, the mission when he arrived at Wounded Warrior Project was not about exoneration; it was about regaining the lost trust of the veterans the organization was founded to serve. "Donors would be unhappy that so much of their money wasn't being used given the plight of veterans," he said. There were also reports of lavish annual meetings at luxury resorts and other extravagant displays by the CEO, such as rappelling down the side of a building at one of these events. The board refused to make the report public, but in a summary it found among other things that $26 million had been spent on conferences and events from Oct. 1, 2013 to Sept. 30, 2014. 2003 In other words, the Wounded Warrior Project scandal will likely reduce trust in all nonprofitsincluding effective ones. "He rappelled down the side of a building at one of the all hands events. The organization will still take action in cases of suspected fraud, he said. "We focus our advertising campaign on warriors that have succeeded. Captain Ryan Kules, Director of Alumni for the Wounded Warrior Project, denied excessive spending on conferences or alcohol. May 7, 2016 Wounded warriors and staff members representing coalition forces and the Warrior Transition Battalion-Europe are staged at the starting line of a 25-mile ride from Hermeskeil to. Former employees say spending skyrocketed since Steven Nardizzi took over as CEO in 2009. All Rights Reserved. The Wounded Warrior Project was founded in 2003 to aid veterans returning from military service. An initial financial audit revealed that some policies, procedures, and controls at Wounded Warrior Project had not kept up with the organizations rapid growth and needed improvement. In the wake of what organization insiders call "the 2016 event," WWP has cut significantly back on all-staff outings; moved away from pricey ticketed events in favor of addressing complex quality-of-life issues for veterans; made efforts to be more collaborative in the veterans' organization community; and even tweaked its advertising strategy to tell a more positive story about veterans, an effort WWP says is calculated not to bring in the most advertising dollars, but to do the most good for the community. Charity Navigators rating of WWP says, You can give with confidence. In addition, WWP holds a 2023 Platinum Seal of Transparency from Candid (formerly GuideStar). Mike Linnington implored Congress to support key policies and legislation that will improve the health and well-being of wounded veterans. Magazines, Digital But newly released numbers for fiscal 2018 show a bounce in the right direction, up 16% to $246 million. After Mr. Kanes email to other donors, he said he got a call from Mr. Giordano. He called the Wounded Warrior Project a fund-raising machine that is a grant-maker not a rent-maker for other organizations. Wounded Warrior Project (WWP) is a charity under 501(c)(3) organization with a tax-exempt status by the Internal Revenue Service. Each of us can make a difference by becoming a more effective donor. The percentage of respondents who stated that WWP was effective at collaborating with other military and veteran nonprofits jumped from 63% to 85% from 2017 to 2018. Every year, the nonprofit asks the warriors it serves what health issues they live with . We have 90,000 post-9/11 veterans we're helping. What happened at the Wounded Warrior Project, and how did it impact the trust of donors and beneficiaries? In January, Charity Navigator, a group that oversees nonprofit organizations, placed Wounded Warrior Project on its watch list, Fox News reported, citing a separate CBS report. Michael S. Linnington explain the influence of Wounded Warrior Projects work on injured veterans. Unfortunately this time it's Wounded Warrior Project. According to the charity's tax forms obtained by CBS News, spending on conferences and meetings went from $1.7 million in 2010, to $26 million in 2014, which is the same amount the group spends on combat stress recovery. "That report also made clear that the Wounded Warrior Project had made some positive steps to regain the public's trust. While WWP's portrayal of veterans has never stripped them of their dignity, some ad campaigns in the early 2010s emphasized images of wounded warriors in the context of caregivers and included interviews with vets discussing daily struggles and needs that went unmet. But people close to the organization also say that, as WWP expanded from a tiny organization distributing free backpacks to wounded veterans in the early 2000s to become one of the most well resourced and influential veterans organizations within a decade, it generated more than its share of ill will. The annual surveys of the wounded warriors the organization serves help direct its focus, Linnington says. Mutual Fund and ETF data provided by Refinitiv Lipper. On Thursday, the WWP board of directors fired CEO Nardizzi and Chief Operating Officer Al Giordanoafter a meeting in New York. CBSN: Veterans take aim at Wounded Warriors on Facebook, fired CEO Nardizzi and Chief Operating Officer Al Giordano. Legal Statement. The programs it did create for veterans often served more as showpieces for marketing than as efforts to address the actual needs of veterans. "We have 55 peer support groups across the country that meet regularly," he said. So you can have these big parties," he told CBS News. All rights reserved. Milestones HOME WOUNDED: THE BATTLE BACK HOME MILESTONES TOGETHER, WE ARE MAKING A POSITIVE AND LASTING IMPACT Wounded Warrior Project (WWP) serves veterans and service members who incurred a physical or mental injury, illness, or wound, co-incident to their military service on or after September 11, 2001. Two top execs at the Wounded Warrior Project one of the largest war veterans support organizations in the nation were fired Thursday in a scandal over money spent on . You've successfully subscribed to this newsletter! "It's the best use of donor dollars to ensure we are providing programs and services to our warriors and families at the highest quality," he said. Mental Health Matters: Wounded Warrior Project Highlights the Impact on Injured Veterans. The Wounded Warrior Projects total revenue for 2014 was reported to be well over $340 million. The two top executives of the Wounded Warrior Project among the largest veterans charities in the country were fired Thursday after an investigation into accusations of lavish spending on parties, hotel and travel, according to a statement released on behalf of the embattled organization. The WWP Federal I.D. The nine offices being closed are in areas where staff typically work from home or in the public. Market data provided by Factset. Two Florida men who stormed the U.S. Capitol with other members of the far-right Oath Keepers group were sentenced Friday to Copyright 2023 Military.com. Jamica Love turned in her resignation amidst a debate among alumni over efforts to create a more inclusive environment. Capt. Mr. Nardizzi and Mr. Giordano did not return repeated calls to their cellphones. Army Staff Sergeant Erick Millette, who returned from Iraq in 2006 with a bronze star and a purple heart, told CBS News at the time he admired the charitys work and took a job with the group in 2014 but quit after two years. Citing whistleblowers, stories by CBS and The New York Times detailed allegations of waste and abuse, lavish all-hands conferences and unbridled spending on ticketed outings that did little lasting good for the veterans they purported to help. He merely notes that "a lot of what was reported was incorrect," and that, in particular, the reported costs of travel and amenities at all-hands events were far overblown. Since then, however, the rate of investment has grown substantially. The impact we have because of donor support is far-reaching. Among those who say WWP has regained their trust is Erick Millette, a medically retired Army staff sergeant who worked for the organization as a full-time public speaker and representative in the organization's "Warriors Speak" program from 2013 to 2015. Accusations of scandal and lavish spending are a disservice and distraction from our mission. This helps prevent another common thinking error called scope neglect, in which our brains fail to ensure that our emotions correspond to the actual impact made by our donations. Fred and Dianne Kane, the parents of two Iraq War veterans, have donated $325,000 to the Wounded Warrior Project since 2009 through their personal charity, Tee-off for a Cause. He watched a young former Army captain who had lost an arm and a leg in Afghanistan offer CBS News awkwardly recited defenses of the group, the nations largest and fastest-growing charity for veterans. Officials are ending the group's Transition Training Academy, which has received criticism for duplicating existing employment programs offered by federal and private-sector sources. Wounded Warrior Project (WWP) is a direct service organization that provides all programs and services at zero cost to the warriors, family members, and caregivers we serve. The organization has previously been criticized for touting a wide network of veteran members, many of whom were inactive and had received few or no services from Wounded Warrior Project. In September 2016, Forbes published a pre-emptive obituary to the organization: "The Gutting Of Wounded Warrior: How To Kill A Charity." Related content: Wounded. Wounded Warrior Project says 80% of their money is spent on programs for veterans. March 11, 2016 When the Wounded Warrior Project was hit in January with multiple accusations in the news media of lavish spending on travel, conferences and public relations, and a toxic. It no longer invests, for example, in its TRACK college preparation program for wounded warriors, preferring to let Student Veterans of America own the space. An article on Saturday about the dismissal of two executives of the Wounded Warrior Project quoted incorrectly from a comment by Phillip Carter, a fellow at the Center for a New American Security, who discussed the value of the organization in helping other veterans groups. Many Americans gave their trust and. While Military.com was unable to review survey findings in full, Plenzler said the 2018 study also found participants overwhelmingly considered WWP to be effective in two areas on which organizational leaders have chosen to focus more sharply: advocacy for caregiver legislation (93%), and advocacy on legislation regarding veterans' medical conditions related to burn pit exposure on deployments (86%). A nger and dismay greeted the announcement last week that the Wounded Warrior Project, a nonprofit that helps wounded veterans, had fired its top staff. "You're using our injuries, our darkest days, our hardships, to make money. "I was always grateful for that mission," Linnington said. With Linnington at the helm, he said, WWP inspires confidence and appears to be working diligently to meet the real needs of its veterans population. It was litigious, suing other veterans' organizations that featured a logo that evoked its own, a service member in silhouette carrying a wounded comrade on his back. Acknowledged to operate with efficiency, transparency, and accountability. The veterans charity group fired CEO Steven Nardizzi and COO Al Giordano late last week, following a January . Slightly more than half of the Kanes' donations directly benefitted veterans, according to CBS News. As commanding general of the Military District of Washington and commander of Joint Force Headquarters-National Capital Region, a position he held from 2011 to 2013, he said he welcomed many arriving C-17 Globemasters transporting wounded veterans back to the United States from Landstuhl Regional Medical Center in Germany. Linnington oversees day-to-day operations and works with the leadership team to set and implement the organization's strategic vision. A senator's investigation into the Wounded Warrior Project after allegations of lavish spending last year has concluded that there were problems, but the organization is working to repair. Millette also marvels at the way the organization has overhauled itself and rebuilt, even as many predicted that it would crumble under the pressure. We must also pressure nonprofits to be transparent about their activities and finances and measure the impact of their work. "They were using the smallest percentage of wounded veterans to suck money out of hard-working Americans," he said. 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. Once the allegations were brought to our attention, we moved quickly, said the chairman of the board, Anthony Odierno, a retired Army captain who was wounded in Iraq and was helped by the Wounded Warrior Project during its early years. His marriage fell apart as the result of the pressure, he said; he received personal threats. That's because they include some promotional items, direct response advertising, and shipping and postage costs. CBS News investigation: How is Wounded Warrior Project spending donations? With time and support from donors, new meta-charities will arise to evaluate other areas of nonprofit activity. The statement also said apreliminary financial audit found that some policies, procedures and controls at WWP have not kept pace with the organizations rapid growth in recent years and are in need of strengthening.. Mr. Nardizzi took over the organization, based in Jacksonville, Fla., in 2009. And there are discussions under way about retired senior military officers who are being considered to take over leadership of the organization. Aug 31, 2016. We will continue to provide free services in mental health, career counseling, long-term rehabilitative care for those we serve as well as advocate for policies that improve the lives of millions more warriors and their families. The organization initially denied the accusations and demanded retractions, but then went silent. Donations plummeted. Our average age is 38 years old," Linnington said. The lessons learned from this scandal underline the importance of vigilance and due diligence in philanthropy. The organization slashed all-hands training costs from $987,000 in 2016 to $110,000 in 2019 for a staff of nearly 700, according to numbers provided to Military.com, in direct response to public criticism. There was no one there to tell us what was going on or how we were going to get through this.. Get browser notifications for breaking news, live events, and exclusive reporting. He said he was now interested in returning. Millette is now best known as a whistleblower who went on the record to decry what he saw as WWP's lavish spending and interest in nurturing its public image, rather than providing meaningful support to its constituents. For example, the charitys spending on conferences and meetings increased from $1.7 million in 2010 to $26 million in 2014, which was the same amount the group spent on combat stress recovery. 100% of your donation supports wounded warriors. "[Now], I would tell you to look at the organization, the changes they've made and make an educated decision. They also stated that they are recognized for having a great impact and for operating with efficiency, transparency, and accountability. He was impressed, he said, that so many of those nighttime arrival flights would be greeted by WWP staff members, and that he'd also see WWP teammates visiting veterans at Walter Reed National Military Medical Center. or redistributed. And it did not appear to prioritize collaboration with other veterans' organizations, taking criticism for relatively small grants it made to support other groups and for passing up opportunities to join forces for advocacy and shared knowledge. Approximately 500 staff members attended a four-day conference in Colorado, which cost about $3 million. Millette, the former WWP staff member who publicly blew the whistle on the organization, said his decision to speak out came at great personal cost. Wounded Warrior Project officials are firing half of their executives, closing nine offices and redirecting millions in spending to mental health care programs and partnerships as . She hosts other veterans at events as a warrior leader, helps head a Wounded Warrior Project (WWP) peer support group that meets in person and online, and serves as a peer mentor during mental health workshops run by WWP. We reach donors through fundraising efforts. Invisible wounds are among the most common for veterans who served after 9/11, according to the latest data from Wounded Warrior Project (WWP). Wounded Warrior Project (WWP) directs every hour, dollar, and action to help wounded warriors reach their highest ambition. The charity grew to offer more services in more locations, but in the process, former employees said, it became wasteful, spending millions on travel, food, drinks and team-building trips for staff members. The easiest way to do this is to take the perspective of a savvy investor and research donation options to make sure you do the most good per dollar donated. Its a fund-raising machine that is a grant-maker for a number of other veterans organizations, said Phillip Carter, a fellow at the Center for a New American Security, which also gets funding from the organization. Many Americans gave their trust and donated their money to this nonprofitto the tune of more than $372 million in 2015. The Wounded Warrior Project scandal provides several lessons for donors: Remember, its not just about finding a charity to support, but making sure your donation will be used effectively and for the intended purpose. Powered and implemented by FactSet Digital Solutions. "Yeah. "We have met with DoD a couple times, when I first came on board, to talk about how we can help inspire young people to serve," he said. " That's thanks in part to a soul-searchingly earnest restructuring effort helmed by CEO Mike Linnington, a retired three-star Army general who arrived at the organization in 2016 with a mandate to turn things around. This article may not be republished, rebroadcast, rewritten or otherwise distributed without written permission. However, like any sector, it is not immune to misconduct. "I don't understand how an organization that has many veterans who value honor and service and chain of command can be led by a guy like that.". Unfortunately, military families are often a target by scammers. When theyre ready to start their next mission, we stand ready to serve. When the Wounded Warrior Project was hit in January with multiple accusations in the news media of lavish spending on travel, conferences and public relations, and a toxic corporate culture, Fred Kane, one of its major fund-raisers, was stunned by the organizations response. "TAPS believed these cancers were due to [toxic exposure]. Iowa Republican Sen. Chuck Grassley, an outspoken accountability advocate who oversaw a Senate probe into WWP released in 2017, struck a hopeful note in a statement to Military.com. By 2016, the organization was doing well, receiving donations in the millions . In an effort to narrow its focus, WWP has dropped some efforts in favor of supporting other organizations that specialize. When we dislike one member of a group, our dislike spills over to other members of that group, even if theres no good reason to think badly of them. 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 in Part 3 of the investigation. She hosts other veterans at events as a warrior leader, helps head a Wounded Warrior Project (WWP) peer support group that meets in person and online, and serves as a peer mentor during mental health workshops run by WWP. 2023 FOX News Network, LLC. Anger and dismay greeted the announcement last week that the Wounded Warrior Project, a nonprofit that helps wounded veterans, had fired its top staff. Donations plummeted. You lead from the front, good or bad, you don't hide," Fred Kane said. They also help WWP track how the needs of veterans are changing with time. Use of this site constitutes acceptance of our, Digital In its commercials, Wounded Warrior Project appeals to the American public's generosity, and it works. Our free services in mental health, career counseling, and long-term rehabilitative care change lives. By Friday afternoon, both phones had been disconnected. It made me sick, Mr. Kane said Friday in an interview. With the support of our community of donors . CBS News spoke to more than 40 former employees who described a charity where spending was out of control. The groups founder, a wounded Marine named John Melia, announced late Friday that he was interested in returning to the organization, which he left in 2009 after a dispute with Mr. Nardizzi and Mr. Giordano. The Wounded Warrior Project Scandal of 2016. A version of this article appears in print on, After Complaints on Wounded Warrior Project, Pressure From Donors, https://www.nytimes.com/2016/03/12/us/after-complaints-on-wounded-warrior-project-pressure-from-donors.html. 4899 Belfort Road Suite 300Jacksonville, FL 32256, Wounded Warrior Project is a tax-exempt 501(C)(3) nonprofit organization CFC #11425, https://www.woundedwarriorproject.org/wwp-serves, 2023 Platinum Seal of Transparency from Candid. "Wounded Warrior Project contacts alumni and family support members multiple times over the course of the year, we call each and every one of our alumni and family support members on their birth month to be able to ensure and check in, see how they're doing, and see if they need other programs and services.". Manage Settings Two former employees, who were so fearful of retaliation they asked that CBS News not show their faces on camera, said spending has skyrocketed since Steven Nardizzi took over as CEO in 2009, pointing to the 2014 annual meeting at a luxury resort in Colorado Springs. In the world of philanthropy, the work of nonprofit organizations often shines as a beacon of hope, providing much-needed support to underprivileged communities and causes. Name recognition that went beyond the military community, thanks in large part to tightly produced and memorable TV ads. "I couldn't tell the number of people that were assisted. The charity has not responded to CBS News' repeated requests to interview Nardizzi, and instead offered Kules, a program director, as qualified to answer questions about the charity. The first scandal we might liken it to is the storied excess of William Aramony, who led the United Way for 22 years.. Aramony is credited with making coherent and guiding the United Way network as it built from $787 million in fundraising proceeds to $3 billion. Dana also leads suicide prevention training for other . To do this, we must give numbers priority over emotionally compelling stories. The nonprofit sector provides social services that governments cant or wont, including providing food, shelter and free higher education to the poor. Kules added the charity did not spend $3 million on the Colorado conference, but he was not there and was unable to say what it did cost. Since 2009, the group raised nearly $1 billion. She takes every opportunity to serve fellow wounded warriors. He has covered Washington, D.C. since 2004, focusing on military personnel and veterans policies. Ideally, though, the ratio should be higher. It also closed regional . If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. It also began to focus on programs like group bike rides and concert-ticket handouts that left many staff members wondering about how much they were helping veterans. Such unjustified distrust of high-quality nonprofits could undermine our society. Still, if the Wounded Warrior Project were to collapse, it could have wide-ranging effects because it gives millions in grants to smaller veterans groups, like Team Rubicon and Team Red White and Blue. Many Americans gave their trust and donated their money to this nonprofitto the tune of than. Transparent about their activities and finances and measure the impact of their money spent... 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