A significant news story this week centered around the Wounded Warrior Project, a charity supposed to be dedicated to helping injured service members. Announced in a statement last week, two of their top executives were fired in an attempt to reform the organization in response to a January story from CBS news accusing the organization of wasting donation money. The Chief Executive Officer, Steven Nardizzi and the Chief Operating Officer, Al Giordano, were both fired.
With executives taking home huge six-figure salaries, frequent expensive first-class flights, allegations of $3 million "team-building" at a luxurious Colorado resort, and the CEO rappelling down a building into a crowd of employees, it is clear that donors' money was not being prioritized to help the wounded veterans it promised to serve. According to the tax forms obtained by CBS, the organization's spending on conferences and meetings rose from under $2 million to $26 million over three years, evidence of the extreme amounts of money being squandered. Read more about the Wounded Warrior Project story here.
In an age when GoFundMe's and Girl Scouts all want your money, it's hard to know where your dollar will truly go the furthest. The Wounded Warrior Project is just one recent organization that has been called out for misusing donations, but it's not as uncommon as one would hope. Other charities and nonprofits have been identified and criticized for their use of funds. For example, Susan G. Komen has been criticized for using donation money to sue other organizations for using their tagline "For the Cure" as well as for the percentage of donations actually being used for cancer research.
It's important to be wary and knowledgeable about the caliber of charity you are giving your money to. The bottom line: do your research before donating if you want to be sure your money isn't funding a hotshot exec's fancy jet ride and ski vacation. When your tax return finally rolls in and you're feeling charitable, check out where your money is going. Here are a few websites that can help you give intelligently.
The BBB Wise Giving Alliance assesses charities based on governance, effectiveness, finances and solicitations and informational materials. Their report for the Wounded Warrior Project is currently in progress.
Charity Navigator bases their evaluations on two things, financial health and accountability and transparency. They also allow users to make donations through their site.
Guidestar creates detailed financial reports on nonprofits that are registered as tax-exempt, as well as religious organizations that do not register with the IRS. Reports are not free to access, however.
