Erin Laughlin
In Motion Staff Writer
On Jan. 26 CBS aired a three-part investigation into the finances of the Wounded Warrior Project, which said it found excess spending and inefficiency in WWP, although the organization says otherwise.
In part one of the investigation CBS published claims by former WWP employees that the organization hosted lavish, unnecessary spending on an annual retreat in Colorado Springs, specifically at the Broadmoor Hotel. CBS reported that “About 500 staff members attended the four-day conference in Colorado. The price tag? About $3 million.”
In a letter demanding the retraction of CBS’s investigation WWP wrote, “The annual training conference costs an average of $1,500 per person, which includes all expenses for travel, meals, accommodations and materials for four days.”
At $1,500 a person for 600 employees, the cost of the training trip actually would be closer to one million dollars, not three, according to WWP officials. In response to the former employee’s statements about alcohol consumption at the retreat, Capt. Ryan Kules, WWP Director of Alumni, denied any purchase of alcohol or excessive spending. The letter demanding a retraction also confronted the accusation by saying, “No alcohol is purchased by the organization at the training.”
WWP cites services as defense
A day after the CBS report, the New York Times published a follow-up piece covering similar data as CBS, but including more accounts by former employees. A key point made by the Times, not included in the CBS investigation, was a potential lack in validity of WWP programs.
“Former staff members said they had less time to develop therapeutic programs and so relied on giving veterans tickets to concerts and sporting events.”
WWP responded to that accusation in a statement saying, “WWP provides more than 20 needs-specific, free programs and services to more than 83,000 wounded veterans and more than 15,000 family support members. We are constantly expanding our services to better support our warriors. We just launched the Warrior Care NetworkTM to help provide world- class mental health care for wounded veterans.”
CBS also covered how WWP spends donations compared to other veteran nonprofit charities. CBS reported that the Disabled American Veterans Charitable Service Trust spends 96 percent of its budget on program expenses, while the Fisher House Foundation devotes 91 percent towards veteran programs. But according to public records provided by Charity Navigator, the Wounded Warrior Project only spends 60 percent on vets.
While this information is true, it does not appear to be an appropriate comparison. The CBS News Investigation acquired its information from Charity Navigator, which uses the IRS Form 990 for tax-exempt organizations, which all nonprofits file. The 2014 IRS 990 on file for the Disabled American Veterans Charitable Service shows that it is an eight million dollar entity, which provides grants to other charities. The charity has zero employees listed.
This, in comparison to the Fisher House, which raises money to provide financial assistance, scholarships, and builds comfort homes at military and VA medical centers and gifts them to the government. The foundation brings in roughly $55 million in donations, employs 27 people and has one location in Rockville, Md.
Finally in contrast, The Wounded Warrior Project has raised over 300 million dollars, employs over 500 staff in 22 locations, both domestic and abroad to deliver 20 different programs and services. Also in the letter of retraction to CBS WWP wrote, “Based on our most recent independently audited financial statements, 80.6% of total expenditures went to provide programs and services for wounded service members, their caregivers, and families.”
Local veteran nonprofits respond
WWP is a nonprofit that has impacted veterans nationally, but has also effected local Volusia County veterans.
Pam Hunt the executive director of A Veteran Community, a nonprofit based in Winter Park that arranges safe housing for veterans in Orange, Seminole and Volusia County, has experience with WWP alumni and programs both as a caregiver and executive director.
In 2007, Hunt’s husband suffered from neck and back fractures while serving in Afghanistan, ending his military career and changing the lives of his family. As a result of WWP programs and events Pam says, “My husband was given a quality of life because of WWP.”
And yet, Tim Hunt killed himself last year. But Hunt said she was given an extra seven years with her husband because of WWP’s assistance.
“The first Wounded Warrior event, the Air and Water Show in Chicago in August 2008, completely changed my family’s life because it was the first time we could do something together not centered around his medical condition,” she said. “It was the first time since deployment that I saw hope in his eyes.”
Hunt said that A Veteran Community relies on WWP alumni for a majority of its volunteers, in addition to WWP providing resources for homeless veterans. She explained that without WWP local veterans, “would be an island to themselves.”
That may well be, but a longtime Volusia County veterans organization — Defending Freedom Warrior Weekend, which supported WWP for eight years with volunteers and donations — says it saw the handwriting on the wall three years ago and distanced itself from the mammoth charitable group.
“We did not like what we were seeing, we wanted the money raised to go locally, but local vets were not a huge entity to WWP and we also didn’t have any control over where our money was being spent,” said Bob Booth of the Defending Freedom group. “Mostly we were asked to, and wanted to, work locally for veterans and that is what we are now doing.”
Further investigations are pending
The story done by CBS News has taken the interest of popular conservative television show host Bill O’Reilly. WWP has advertised very heavily on Fox News and when the initial reports were done by CBS and the Times, O’Reilly declared he would be conducting his own investigation.
On Feb 12 Eric Shawn, senior correspondent for Fox News, reported his preliminary findings into WWP. From his initial investigation Shawn found WWP did not spend $3 million on the company conference and WWP has maintained its three out of four star rating on Charity Navigator.
O’Reilly, reminding his audience about the complexity of the accusations, said, “We have our people on it. This takes time, ladies and gentlemen.”
In response to the allegations by CBS and the Times, WWP’s board of directors issued a statement saying they are “In the process of retaining independent advisors to conduct a thorough financial and policy review of the concerns.”
Local vets forge ahead
Among the services provided by the DeLand-based Defending Freedom group is help for soldiers suffering from Post Traumatic Stress Disorder.
“As part of the Warrior Weekend, we take 50 warriors into DeLand and they go tandem skydiving. Doctors are finding out that skydiving and golf are two sports that are good for reducing PTSD,” Booth said.
Aided by the sponsorship of DeLand’s Complete Parachute Solutions, his nonprofit also is planning a fundraising “Travis Hunt” March 19 in honor of the late Marine Corps sharp shooter, specialist Travis Staats, who also served in the Army. Staats died of suicide March 20 a year ago. He was a highly decorated soldier, who was once featured in National Geographic and seemingly had a long life and bright future ahead of him.
“His mother asked us to host a charitable scavenger hunt in Travis’ memory. He was buried at Arlington National Cemetery in October. Unfortunately, he suffered from PTSD and became one of the 23 vets a day who kill themselves,” Booth said, citing Veteran’s Administration statistics.
Coming April 21-23 in DeLand is the 10th annual Defending Freedom Warrior Weekend, which will offer a number of events aimed at raising money for veteran services in Volusia County. Among the activities will be a barbecue, block party and golf tournament. Fifty veterans, as mentioned, will be jumping in tandem at Skydive DeLand. Information on Staats’ scavenger hunt and the Warrior Weekend event can be obtained http://www.cpswarriorweekend.org/ Or those interested can call Brenda Reeves, Staats’ mother, at 407-782-1514 or Quin Booth at 786-487-8114. All proceeds from these events go to helping local veterans.
On March 25, A Veteran Community will present “Spruce Up DaRosa.” Members will be rehabbing a property in Debary that houses a veteran and his family. DeFending Freedom members also participate in finding and renovating homes for veterans. Both organizations are seeking volunteers in those and other projects.
Information on A Veteran Community and its events can be found at http://aveterancommunity.org/. Information on the Warrior Weekend event can be obtained http://www.cpswarriorweekend.org/ Or those interested can call Brenda Reeves, Staats’ mother, at 407-782-1514 or Quin Booth at 786-487-8114. All proceeds from these events go to helping local veterans.
Editor’s Note: Reporter Erin Laughlin conducted an in-person interview with Albion Giordano, COO of WWP, at the organization’s Jacksonville headquarters in February. Just before press time, he requested that his comments be withdrawn until the internal audit of WWPs finances is complete.
- Staff Contributed to this report