GA and Brunswick students are often involved in charity work. We embark on service trips, endorse causes, and run fundraisers to help local and global charities. But what happens to the funds after they are sent to the charities? How can we be sure they are used for what the charity claims? Should we be sticking to local, smaller-scale foundations instead of nationwide corporations?
The answer may be yes. The recent Wounded Warrior Project budget controversy has highlighted the fact that we do not always know where our donations are going. CBS News reports that recently uncovered public spending records revealed that the WWP spends only 60 percent of its donations on vets. This is more than 30 percent less than other veteran aid charities such as the Disabled American Veterans Charitable Service Trust and the Fisher House Foundation, each of which devote more than 90 percent of their budgets to veterans.
These voids in the WWP’s financial output are not limited to this year. In 2013, the Tampa Bay Times reported that the WWP was spending only 58 percent of its donations on veteran programs, $87 million from their total $150 million raised. In 2015, the New York Times reported that the WWP raised over $372 million but was still purported to use only 60 percent for the charities’ original purpose. For better perspective, while the WWP seems to spend over 30 percent on overhead, the Semper Fi Fund spends 8 percent.
So where is the money going? With other charities spending over 90 percent on their vets, the 30 percent difference is hard to overlook. The charity uses fundraising events, corporate sponsorships, advertising, and mail appeals, among other methods, to raise money. Still, a large portion of the charity’s income is from private donation.
The latest reports from CBS and CNBC suggest that the charity may be spending an excessive amount on itself. At one of the WWP’s conferences in Colorado in 2014, CEO Steven Nardizzi rappelled off a 10-story bell tower down into the Colorado Springs resort courtyard where he met his cheering staff. They were celebrating one of the WWP’s most “charitable” years yet, having raised over $225 million. Former workers are now coming forward and admitting they have regularly flown to minor meetings in business-class. However, most have acknowledged that lavish spending is directly connected to Nardizzi.
However, Nardizzi explicitly denies any misuse of company funds. In 2013, he was quoted in the Tampa Bay Times stating, “We’re a direct service provider, dealing with some of the world’s greatest social ills. We hire the best of the best and we pay them a living wage.”
Project founder and Marine veteran John Melia hired Nardizzi during the charity’s startup years, though Nardizzi, a lawyer by training, had never served in the military. During its first years, the WWP gained support and adhered to its purpose as a service provider; it funded (and still does today) rehabilitation programs for wounded veterans and support for military families across the country. However, in 2009, Nardizzi and Melia began to see different futures for the foundation. Nardizzi advocated for rapid expansion, while Melia remained conservative. The New York Times reports that Melia resigned in January 2009, bullied out of his position, according to his ex-wife, Julie.
Today, a caller to the WWP hotline hears the following:
“Thank you for calling Wounded Warrior Project. We are receiving a higher than normal call volume due to recent false news circulating about our organization. These reports contain numerous factual errors and have misrepresented the good work Wounded Warrior Project does on behalf of this nation’s injured veterans. For Wounded Warrior Project’s response to these false reports, please visit our website…”
On its website, the WWP dismisses news reports on its expenditures, calling them “false.” They claim, “We are an open book. We owe that to those who support us and to those we serve – wounded warriors…Many people like to talk about the need to support wounded warriors—the Wounded Warrior Project is actually doing it—every day and in record numbers.” WWP has also responded to the CBS report, specifically saying that the news corporation did not contact the chair of WWP’s Audit Committee, Richard M. Jones, before airing their story “with false information about our finances.”
Still, many current WWP employees are hesitant to fill gaps in the story. Though denying that the 2014 Colorado Springs conference cost $3 million, Capt. Ryan Kules, WWP Director of Alumni, was “unable to say what it did cost” in a CBS interview. When asked, WWP denied CBS an interview with Nardizzi.
Whether or not cases of charity corruption, mismanagement, or news propaganda, these recent events lead people to reflect upon their charitable involvement. The WWP remains one of the nation’s top veteran aid foundations, providing more than 83,000 veterans with vital programs and services. For those 83,000 wounded warriors, the WWP’s continuation is essential—but as a foundation adhering to its original purpose.
The WWP relies heavily on civilian donations, and Army Staff Sergeant Erick Millette, a former employee, brings forth a valid concern in his CBS News interview: “I’m sorry, but I’ll be damned if you’re gonna take hard-working Americans’ money and drink it and waste it.”
Brunswick student [and Review Senior Editor] David Sorbaro shares some of Millette’s fervency. “I think that corruption, controversy, and scandal are unfortunately commonplace among organizations in America, but when an organization like the WWP is hit with a scandal, it's specifically grotesque. It doesn't matter the size or amount of money spent on unnecessary things. If a single penny is misused in the WWP’s work, that's a tragedy.”
GA student Adele Whitmyer comments, “I think that people learn to trust charities who advertise a lot or do a lot in a community, and people sometimes just assume that it's going to the right place. It’s scary that people don’t always have the best intentions.”
Many Americans agree with Sorbaro and Whitmyer and are holding their WWP donations until the charity ties up its overabundant loose ends. But if the charity suffers, so do the vets. And what if this scandal shuts the WWP down? The wounded warriors run the risk of losing 60 percent of something in fighting for 100 percent of what turns out to be nothing.
GA and Brunswick students are often involved in charity work. We embark on service trips, endorse causes, and run fundraisers to help local and global charities. But what happens to the funds after they are sent to the charities? How can we be sure they are used for what the charity claims? Should we be sticking to local, smaller-scale foundations instead of nationwide corporations?
The answer may be yes. The recent Wounded Warrior Project budget controversy has highlighted the fact that we do not always know where our donations are going. CBS News reports that recently uncovered public spending records revealed that the WWP spends only 60 percent of its donations on vets. This is more than 30 percent less than other veteran aid charities such as the Disabled American Veterans Charitable Service Trust and the Fisher House Foundation, each of which devote more than 90 percent of their budgets to veterans.
These voids in the WWP’s financial output are not limited to this year. In 2013, the Tampa Bay Times reported that the WWP was spending only 58 percent of its donations on veteran programs, $87 million from their total $150 million raised. In 2015, the New York Times reported that the WWP raised over $372 million but was still purported to use only 60 percent for the charities’ original purpose. For better perspective, while the WWP seems to spend over 30 percent on overhead, the Semper Fi Fund spends 8 percent.
So where is the money going? With other charities spending over 90 percent on their vets, the 30 percent difference is hard to overlook. The charity uses fundraising events, corporate sponsorships, advertising, and mail appeals, among other methods, to raise money. Still, a large portion of the charity’s income is from private donation.
The latest reports from CBS and CNBC suggest that the charity may be spending an excessive amount on itself. At one of the WWP’s conferences in Colorado in 2014, CEO Steven Nardizzi rappelled off a 10-story bell tower down into the Colorado Springs resort courtyard where he met his cheering staff. They were celebrating one of the WWP’s most “charitable” years yet, having raised over $225 million. Former workers are now coming forward and admitting they have regularly flown to minor meetings in business-class. However, most have acknowledged that lavish spending is directly connected to Nardizzi.
However, Nardizzi explicitly denies any misuse of company funds. In 2013, he was quoted in the Tampa Bay Times stating, “We’re a direct service provider, dealing with some of the world’s greatest social ills. We hire the best of the best and we pay them a living wage.”
Project founder and Marine veteran John Melia hired Nardizzi during the charity’s startup years, though Nardizzi, a lawyer by training, had never served in the military. During its first years, the WWP gained support and adhered to its purpose as a service provider; it funded (and still does today) rehabilitation programs for wounded veterans and support for military families across the country. However, in 2009, Nardizzi and Melia began to see different futures for the foundation. Nardizzi advocated for rapid expansion, while Melia remained conservative. The New York Times reports that Melia resigned in January 2009, bullied out of his position, according to his ex-wife, Julie.
Today, a caller to the WWP hotline hears the following:
“Thank you for calling Wounded Warrior Project. We are receiving a higher than normal call volume due to recent false news circulating about our organization. These reports contain numerous factual errors and have misrepresented the good work Wounded Warrior Project does on behalf of this nation’s injured veterans. For Wounded Warrior Project’s response to these false reports, please visit our website…”
On its website, the WWP dismisses news reports on its expenditures, calling them “false.” They claim, “We are an open book. We owe that to those who support us and to those we serve – wounded warriors…Many people like to talk about the need to support wounded warriors—the Wounded Warrior Project is actually doing it—every day and in record numbers.” WWP has also responded to the CBS report, specifically saying that the news corporation did not contact the chair of WWP’s Audit Committee, Richard M. Jones, before airing their story “with false information about our finances.”
Still, many current WWP employees are hesitant to fill gaps in the story. Though denying that the 2014 Colorado Springs conference cost $3 million, Capt. Ryan Kules, WWP Director of Alumni, was “unable to say what it did cost” in a CBS interview. When asked, WWP denied CBS an interview with Nardizzi.
Whether or not cases of charity corruption, mismanagement, or news propaganda, these recent events lead people to reflect upon their charitable involvement. The WWP remains one of the nation’s top veteran aid foundations, providing more than 83,000 veterans with vital programs and services. For those 83,000 wounded warriors, the WWP’s continuation is essential—but as a foundation adhering to its original purpose.
The WWP relies heavily on civilian donations, and Army Staff Sergeant Erick Millette, a former employee, brings forth a valid concern in his CBS News interview: “I’m sorry, but I’ll be damned if you’re gonna take hard-working Americans’ money and drink it and waste it.”
Brunswick student [and Review Senior Editor] David Sorbaro shares some of Millette’s fervency. “I think that corruption, controversy, and scandal are unfortunately commonplace among organizations in America, but when an organization like the WWP is hit with a scandal, it's specifically grotesque. It doesn't matter the size or amount of money spent on unnecessary things. If a single penny is misused in the WWP’s work, that's a tragedy.”
GA student Adele Whitmyer comments, “I think that people learn to trust charities who advertise a lot or do a lot in a community, and people sometimes just assume that it's going to the right place. It’s scary that people don’t always have the best intentions.”
Many Americans agree with Sorbaro and Whitmyer and are holding their WWP donations until the charity ties up its overabundant loose ends. But if the charity suffers, so do the vets. And what if this scandal shuts the WWP down? The wounded warriors run the risk of losing 60 percent of something in fighting for 100 percent of what turns out to be nothing.
