By the time I left, we were just throwing guys in jobs to check off a box and hit the numbers.. Jan 26, 2023. Name recognition that went beyond the military community, thanks in large part to tightly produced and memorable TV ads. I look at companies like Starbucks thats the model, Mr. Nardizzi said. With vaccine hesitancy remaining significant among his . The writer is head of investments and partnerships for the Forest Stewardship Council. It's really about the resilience, the exceptionalism of our warriors.". 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. 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. 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. Donations to Wounded Warrior Project Slow After Spending Scandal. CBS News and The New York Times found the. 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%). The metrics were intended to improve efficiency and help fund-raising. You do not reflect the sentiments of the more than 80,000 wounded soldiers we have helped, focusing instead on a few malcontents. AIR Awareness Outreach; AIR Business Lunch & Learn; AIR Community of Kindness; AIR Dogs: Paws For Minds AIR Hero AIR & NJAMHAA Conference In 2014, the Wounded Warrior Project lobbied in California and Florida to fight proposals that would have required nonprofits to increase financial transparency. Have they proved reliable in the past? The veterans' service organization called Wounded Warrior Project has just fired two top executives, CEO Steven Nardizzi and COO Al Giordano. In an interview at the organizations four-story headquarters in a palm-lined office park in Jacksonville, Fla., Mr. Nardizzi, 45, said spending on fund-raising and other expenses not directly related to veterans programs has enabled the Wounded Warrior Project to grow faster and serve more people. On the ratings service Charity Navigator, the Wounded Warriors Project earns an overall score of 84.5 out of 100, good for three stars. The organization has also spent hundreds of thousands of dollars in recent years on public relations and lobbying campaigns to deflect criticism of its spending and to fight legislative efforts to restrict how much nonprofits spend on overhead. The organization paid Mr. Melia at least $230,000 after he stepped down, according to tax forms. The Marine Corps Law Enforcement Foundation provides more than 98 percent toveterans. The charity recently pledged to raise $500 million for a trust to fund lifetime supplemental health care for severely wounded veterans. Celebrity endorsements from the likes of Trace Adkins and Jimmy Buffett. From so much bad came some good, as the military medical health care system was reorganized. Nonprofit watchdog Charity Navigator says Wounded Warrior Project spends just 60 percent of its budget on veterans. Our average age is 38 years old," Linnington said. 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. Its television commercials with scenes of men, women and their families coping with deep emotional pain pull at the heart and purse strings. Many Americans gave their trust and donated their money to this nonprofitto the tune of more than $372 million in 2015. But Mr. Melias ex-wife, Julie Melia, who worked at the charity at the time, said in an interview that her former husband felt like the organization was stolen from him.. What we consider before using anonymous sources. 3. The Walter Reed Story, https://www.nytimes.com/2013/09/30/booming/and-this-was-called-care-the-walter-reed-story.html. Its a hard balance, but I think we strike the right balance, he said. 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.. "I was always grateful for that mission," Linnington said. On Tuesday, CBS News ran a story about the Wounded Warrior Project, claiming to have interviewed over 40 former employees who stated that spending was out of control at the organization. "When the negative media event hit in January-February-March of 2016, public support dropped 50%," he said. Updated: 7:53 PM EST November 8, 2019 JACKSONVILLE, Fla Jacksonville based Wounded Warrior Project was the fastest-growing veteran's service organization before it was rocked by a scandal. I would fly to New York for less than a day to report to my supervisor.. Its founder, John Melia, was a Marine veteran who had been injured in a helicopter crash off the coast of Somalia in 1992. It did not dispute findings reported by The Times, including that the organization had fired a number of wounded veterans with little cause. In a 19-page decision filed today (Jan. 12), the U.S. Court of Appeals for the 8th Circuit in Nebraska knocked down six alleged key errors in the Appeals Court Upholds Judgment For Wounded Warrior Project Read More Mr. Nardizzi took over the organization, based in Jacksonville, Fla., in 2009. It estimates that 80,000 veterans have used its services. But, as it turned out, reports of the death of Wounded Warrior Project have been greatly exaggerated. These organizations have always been known to spend very little on anything but the veterans and their families, and the general public will now be terribly suspicious and wary. It slowly had less focus on veterans and more on raising money and protecting the organization, he said. He changes his habits and routine around Jacksonville, Florida, he said, to avoid running into former organization co-workers. "Donors would be unhappy that so much of their money wasn't being used given the plight of veterans," he said. This material may not be published, broadcast, rewritten, The Wounded Warrior Project, WWP, is a not-for-profit charity that aims to assist wounded veterans with their needs. The Wounded Warrior Project is working to rebuild trust with its donors and veterans. Andy Newman/Florida Keys News Bureau, via Associated Press. How do we help them? In the wake of the charity's scandal, Wounded Warrior Project not only ousted its two top executive officers but also slimmed its executive staff by 50 percent overall. As the group grew, it expanded its programs and brought on Mr. Nardizzi, a lawyer who had never served in the military, and his longtime friend, Mr. Giordano. WWP has also pressed forward in its role as a legislative advocate, recently mounting a campaign to expand an adaptive housing benefit available to veterans -- legislation named after longtime WWP staff member Ryan Kules. Former staff members said they had less time to develop therapeutic programs and so relied on giving veterans tickets to concerts and sporting events. The Pentagon has not provided any public updates or said when the formal policy will be issued. Will we ever be 380 again? The group, based in Jacksonville, Fla., has been challenged over how it spends more than $800 million raised in donations over the past four years. Sept. 30, 2013 As this week's Retro Report video explains, the biggest scandal in recent times involving the care of wounded American troops was actually worsened because medicine on the. Mr. Kane said he lambasted Mr. Giordano for hiding behind a wounded veteran on camera and said he would cancel his donations. People could spend money on the most ridiculous thing and no one batted an eye, said Connie Chapman, who was in charge of the charitys Seattle office for two years. It also closed. In 2018, the organization gave away $13.6 million in grants to other organizations. A spokeswoman for the charity said it fired those people because of poor performance or ethical breaches, and that each of them was given the opportunity to address their work problems. So we've tried to paint service as a good thing and, I think if you look at the exceptional nature of the young people that are joining the military today, we're seeing a shift now in a higher propensity to serve, I think, over the last year or two.". John Melia founded the Wounded Warrior Project in 2003 but left in 2009. In its commercials, Wounded Warrior Project appeals to the American public's generosity, and it works. In fiscal 2016, the organization's revenue exceeded $226 million; the closest runner-up was Disabled Veterans of America, with nearly $135 million. The reporter and at least one editor know the identity of the source. Why do the misdeeds of one nonprofit cause mistrust of all nonprofits? Kane said he has cut charitable ties with the Wounded Warrior Project, embarking on a new charge to effect change at the organization. Within months, Wounded Warrior Project's two top executives -- CEO Steve Nardizzi and COO Al Giordano -- had been fired, and the organization itself was the subject of a congressional inquiry. Kurnyta noted the organization had a near-perfect score in transparency: 97 out of 100. Wounded Warrior Project Spends Lavishly on Itself, Insiders Say 1244 William Chick, who was fired from the Wounded Warrior Project in 2012 after a dispute with his supervisor. Powered and implemented by FactSet Digital Solutions. About 40 percent of the organizations donations in 2014 were spent on its overhead, or about $124 million, according to the charity-rating group Charity Navigator. In 2013, according to tax forms, the Wounded Warrior Project gave $150,000 to a nonprofit called the Charity Defense Council and Mr. Nardizzi joined its advisory board. I loved it, the former Marine sniper said. reported that the Wounded Warrior Project. After Public Crisis and Fall from Grace, Wounded . Other former employees said they had signed such forms, and could not speak. Grants to veterans'. As this weeks Retro Report video explains, the biggest scandal in recent times involving the care of wounded American troops was actually worsened because medicine on the battlefront had made such remarkable advances. 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. 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. "We wrap our arms around those that want to help veterans now, versus looking to protect our brand at every inch and ounce of measure," he said. The councils mission includes defending charity spending on overhead and executive salaries, its website says. Her termination was so abrupt that her work phone and credit card were shut off while she was leading an event. Also around that time, the group hired the global public relations firm Edelman, which has represented Starbucks, Walmart, Shell and Philip Morris, to improve public perception of the charity and its overhead spending. The eRumor's claim that the organization spends just 3.5% of its total income on grants for individuals and veteran organizations is . To fill seats, they often invited the same veterans. You'll recall that,. Mr. Giordano tried to refute the news media accounts, Mr. Kane said, and explained that the executives silence had been recommended by a public relations firm as a way to defuse criticism. Now I wonder how employees can live lavishly off a large percentage of the contributions that should be serving people in need. See the metrics below for more information. Annually, the group receives more than $300 million in donations (Cerully, Smith, Wilks, & Giglio, 2015). About 40 percent of the organizations donations in 2014 were spent on its overhead, or about $124 million, according to the charity-rating group Charity Navigator. 4. "We've changed that too, honestly," he said. Magazines, Or create a free account to access more articles, The Wounded Warrior Project Scandal Should Encourage More Philanthropy. We all have the power to ensure that we can truly trust nonprofits to spend our money wisely. Veterans organizations in the United States often reflect the era in which they were created: After World War I, they resembled fraternal orders. 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. Linnington made clear that he wants to see the organization continue its climb out of a fundraising valley but said he is more concerned about fulfilling the mission than making up numbers. To do this, we must give numbers priority over emotionally compelling stories. Such unjustified distrust of high-quality nonprofits could undermine our society. Linnington said the 2015-16 fiscal year will get posted in the spring . 2. It has spent millions a year on travel, dinners, hotels and conferences that often seemed more lavish than appropriate, more than four dozen current and former employees said in interviews. 7. Out in Los Angeles, L.A. County Sheriff Alex Villanueva sent out a warning over the weekend. The videos are typically 10 to 12 minutes long. But Linnington maintains it's not just about the bottom line for him. Wounded Warrior Project executives fired in spending scandal. And it took all this bone and everything with it and, of course, my left eye it took with it.. The problem is the horns effect, one of the many thinking errors that are a consequence of how our brains are structured. And it has become a brand name, its logo emblazoned on sneakers, paper towel packs and television commercials that run dozens of times. These stories focused on fundraising, the salary of the CEO, exorbitant spending on staff activities, and the low percentage of contributions actually going to veteran services. IN JANUARY, when I wrote about a publisher's creative team-up involving Wounded Warrior . If the same warrior attends six different events, you could record that as six warriors served, said Renee Humphrey, who oversaw alumni outreach in Southern California for about four years. "They were using the smallest percentage of wounded veterans to suck money out of hard-working Americans," he said. In all those areas, Linnington said Wounded Warrior Project is making strides. While top executives kept a low profile, the organizations board pursued an independent investigation, conducted by outside lawyers who combed through financial filings and interviewed more than 50 current and former employees. Another response would be for our candidates, who are battling about which countries to send troops to, to have a public conversation about the price our troops will pay and how they will be helped. Your article zoned in on some disgruntled former employees rather than the roughly 500 staff members who work tirelessly to honor and empower our wounded. They gave me a Xeroxed map of the hospital grounds and it was not very well photocopied, he explains on the video. To continue addressing these social needs and address the distrust caused by nonprofit scandals, we need to improve our nonprofit sector. Where was Steve Nardizzi and why didnt he face the reporter? Mr. Kane asked, naming the outspoken chief executive who had been accused of much of the excess. Recent reports from The New York Times and CBS alleged that the nonprofit has been misspending its donations on lavish conferences and unnecessary business trips for employees.. Kurnyta said the watchdog group published a "low-concern" advisory for WWP in 2016 as staffing scandals made headlines, but never stopped rating the organization. The group has also historically dinged WWP for having so much capital in reserve -- at one point, Borochoff said, it "socked away" almost one-third of what it brought in. It made me sick, Mr. Kane said Friday in an interview. Michael Loccisano/Getty Images The organization began producing inspirational ads featuring wounded veterans fighting to recover. It was a very coercive conversation.. In other words, the Wounded Warrior Project scandal will likely reduce trust in all nonprofitsincluding effective ones. After Vietnam, many focused on advocacy in Washington. Market data provided by Factset. And sometimes those employees are veterans.. By giving back, I was helping myself and helping other vets.. They began raising millions of dollars and broadening their services to include adaptive sports for disabled veterans, employment and benefits help, and retreats to teach veterans to cope with post-traumatic stress disorder. But constraining nonprofits to a special class of organization that isnt allowed to market itself, pay competitive salaries or grow quickly is a longstanding tradition in America. The Wounded Warrior Project (WWP) is the largest veteran's charity in the United States. 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. Graphite 80/20 Poly/Cotton Left Chest/Sleeve Design Screenprint So we had to rebuild.". Instead, meta-charities receive funding from donors who appreciate the services these organizations provide, allowing meta-charities to stay objective. -- Hope Hodge Seck can be reached at [email protected]. He also told CBS News that the charity did not spend money on alcohol or engages in any other kind of excessive spending. Linnington said the organization is also making a point to be part of conversations involving the "Big Six" -- the congressionally chartered veterans service organizations including American Legion and VFW -- and to be present for regular convenings with the Defense Department and the Department of Veterans Affairs. After Mr. Kanes email to other donors, he said he got a call from Mr. Giordano. One employee was quoted as calling it "extremely extravagant. He was medevaced out of Iraq, but only nine days after his near-fatal injury, the Walter Reed staff discharged him into outpatient status. Well, they didnt. The New York Times' recent investigation into the Wounded Warrior Project (WWP) has sent rumbles throughout through the philanthropy community. "We focus our advertising campaign on warriors that have succeeded. Today, the charity has 22 locations offering programs to help veterans readjust to society, attend school, find work and participate in athletics. They would just come up with numbers based on nothing, Mr. Lessard said. Mr. Millette said the charity encouraged him to highlight its role in helping him recover from PTSD and traumatic brain injury. Find Wounded Warrior Project shirts, headwear and other WWP merchandise at WWPShop.org 2023 FOX News Network, LLC. Soon after the amputation, he said, he was racked by haunting emotions from Iraq and checked himself into suicide watch at a psychiatric ward. 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. Both ad campaigns depict a real part of the wounded veteran experience, and WWP staff acknowledge that donors respond more to portrayals of those with the greatest need. But I am concerned about our ability to meet our obligations in the future.. Mr. Nardizzi fired Ms. Chapman, an Iraq veteran with PTSD, in 2012 as part of a management restructuring, she said. With the support of our community of donors . Such ambitious programs would be impossible without significant spending on fund-raising and staff, said Mr. Nardizzi, who has become a vocal advocate of the idea that charities should be able to spend what they want on travel, fund-raising and executive salaries. As a result, some philanthropic watchdog groups have criticized the Wounded Warrior Project for spending too heavily on itself. Money poured in. Mr. Melia could not be reached, but Julie Melia, his former wife, said, He feels he can help get it back in the good direction.. 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. Quotes displayed in real-time or delayed by at least 15 minutes. Retro Report has a staff of 13 journalists and 10 contributors led by Kyra Darnton, a former 60 Minutes producer. Whats their motivation for telling us? I read with disgust your slanted article on the Wounded Warrior Project. To best effectuate these changes and help restore trust in the organization among all of the constituencies WWP serves, the Board determined the organization would benefit from new leadership, and WWP CEO Steve Nardizzi and COO Al Giordano are no longer with the organization, the statementsaid. As he told Retro Report: It just missed the bridge of my nose and exited over my left ear. Since then, however, the rate of investment has grown substantially. Ask anyone with a personal stake in the Wounded Warrior Project (WWP), the organization founded in 2003 to provide programs and services for injured U.S. military personnel. We must also pressure nonprofits to be transparent about their activities and finances and measure the impact of their work. 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. The Wounded Warrior Project began in 2003 as a basement nonprofit organization run by Mr. Melia, who was wounded in a helicopter crash off Somalia. Employees say Mr. Nardizzi vanished from view, refusing to talk to the news media, stopping his weekly addresses to the staff, and even disappearing from the halls of the groups offices. "Going to a nice fancy restaurant is not team building. The secret sauce was the brand, and the mission, said Dave Ward, a vice president who left in 2015. The annual surveys of the wounded warriors the organization serves help direct its focus, Linnington says. Use of this site constitutes acceptance of our, Digital Donations plummeted. It contributes millions to smaller veterans groups. In January both The New York Times and CBS News reported that the Wounded Warrior Project, which raised more than $372 million in 2015, had spent millions on travel, dinners, entertainment and lavish staff meetings, like one at the five-star Broadmoor hotel in Colorado, where Mr. Nardizzi made his entrance by rappelling from a tower. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. But some employees assert that the productivity goals were set so high that they eroded program quality. These houses are used to alleviate the out-of-pocket costs of families of veterans and wounded soldiers who are receiving treatment at medical facilities. More than 6 out of 10 (64.2%) WWP-registered Alumni say they. Wounded Warrior Project rocked by fundraising scandal Wounded Warrior Project probed for lavish spending while vets suffer The U.S. Attorney's Office in Indiana has brought charges. CBS News' investigation into the Wounded Warrior Project's spending on veterans has sparked heated debate online. The real tragedy of this scandal is the impact it will have on donors willingness to give to the many worthwhile and more frugal organizations helping our veterans. Ms. Humphrey, an Iraq veteran with PTSD, was fired in 2013. "The warriors that joined Wounded Warrior Project, you know, in 2003 are today 15 years older than they were when they joined.