"I have zero regrets, and I would do it again," he said. Mr. Odierno said the board took issue with cultural and policy findings as well as financial issues when deciding to replace the organizations top leaders. But by then, Mr. Melia and Mr. Nardizzi were fighting over the charitys future, with Mr. Nardizzi pushing for more aggressive expansion than Mr. Melia, former employees said. In 2016, they had a bit of controversy, when they fired s. See a recent article in the New York Times and a blog post from GuideStar CEO Jacob Herald. The country's most prominent veteran's . Copyright 2023 Military.com. You do not reflect the sentiments of the more than 80,000 wounded soldiers we have helped, focusing instead on a few malcontents. Perpetuating the myth that the worth of a nonprofit organization boils down to what it spends on overhead is simply indefensible. 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. While that percentage, which includes administrative expenses and marketing costs, is not as much as for some groups, it is far more than for many veterans charities, including the Semper Fi Fund, a wounded-veterans group that spent about 8 percent of donations on overhead. "We focus our advertising campaign on warriors that have succeeded. Out in Los Angeles, L.A. County Sheriff Alex Villanueva sent out a warning over the weekend. "Before, you'd have a retreat and, after that, it was nothing. As Wounded Warrior Project battles allegations its former executives violated public trust, they face the real fear that donations will start to dry up. I would push back and they would get very frustrated and yell. 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. But I am concerned about our ability to meet our obligations in the future.. It said that 94 percent of the travel spending was associated with program services delivered to Wounded Warriors and their families. It noted that the retreat at the Broadmoor cost about $1 million, not $3 million as CBS News had reported. In July, along with the publication of a new financial statement for fiscal 2018 showing revenues of $246 million, WWP received an updated score from the watchdog organization Charity Navigator, up to 86.45 out of 100 from 86.02 the previous year. Have they proved reliable in the past? The departure of two top executives, CEO Steven Nardizzi and COO Al Giordano comes at a time when the wounded veteran-focused organization is awash in controversy amid news reports accusing the . It contributes millions to smaller veterans groups. The New York Times' recent investigation into the Wounded Warrior Project (WWP) has sent rumbles throughout through the philanthropy community. After Jesse Longoria recovered from a roadside bomb blast that nearly killed him in Iraq, he got a job with the organization training veterans to help other veterans. 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. You have reached your limit of 4 free articles. Plenzler said spending on that program so far has totaled $100 million, with another $165 million committed over the next five years. The story broke in The Washington Post in the winter of 2007, with a series about Walter Reed Army Medical Center. In news media accounts and at a Congressional hearing, the No. It made me sick, Mr. Kane said Friday in an interview. Each of us can make a difference by becoming a more effective donor. We knew VVA had done pioneering work on Agent Orange, so we created a collaborative grant to pair them with TAPS to start gathering data on [toxic exposure] and to help ensure trans-generational knowledge transfer from the Vietnam-era generation of veterans to today's post-9/11 generation.". 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. After Public Crisis and Fall from Grace, Wounded . John Melia founded the Wounded Warrior Project in 2003 but left in 2009. I would fly to New York for less than a day to report to my supervisor.. Now I wonder how employees can live lavishly off a large percentage of the contributions that should be serving people in need. 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. But executives quadrupled the number of job placements the program was expected to make each year, reducing the amount of time specialists had to find good ones, said Dan Lessard, who ran the program for about two years. Another organization, Animal Charity Evaluators, gives recommendations on the most effective charities to prevent animal suffering. reported that the Wounded Warrior Project. Mr. Chicks own supervisor told him to fire Mr. Longoria. 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. The Wounded Warrior Project program provides adapted equipment for injured veterans to cycle together. First: donations to Wounded Warriors fell by $70 million from 2015 to 2016. After Mr. Kanes email to other donors, he said he got a call from Mr. Giordano. It got under my skin, started eating at me, he said. This material may not be published, broadcast, rewritten, Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. Is Wounded Warrior Project a legitimate charity? Mr. Nardizzi doubled his spending on fund-raising and has increased it an average of 66 percent every year since. On March 14, 2016, CBS This Morning published an article titled, "Wounded Warrior Project chair on recovery from spending scandal." For more information, please see the CBS This Morning article. 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. 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. It was like he had been kidnapped, said one employee who did not want to speak publicly because she feared being fired. Mr. Nardizzi said in an interview that Mr. Melia left to pursue business ventures. It seemed to me like it was a big lie., Wounded Warrior Project Spends Lavishly on Itself, Insiders Say, https://www.nytimes.com/2016/01/28/us/wounded-warrior-project-spends-lavishly-on-itself-ex-employees-say.html, William Chick, who was fired from the Wounded Warrior Project in 2012 after a dispute with his supervisor. That's a pretty significant drop in a short period of time," he said. " Now, they're doing that follow-up, and they have the capacity to deal with the mental health issues," he said. " You've successfully subscribed to this newsletter! 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. March 14, 2016. 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. Sen. Chuck Grassley, R-Iowa, launched his investigation in March 2016, following reports by the New York Times and CBS News of excessive spending on events and airfare and a toxic. Religion and Technology Should Unite for the Greater Good, The 25 Defining Works of the Black Renaissance. It also closed. Since then, however, the rate of investment has grown substantially. 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.. "And secondly, with the American people who support our warriors.". Board members called a few former employees this week to thank them for coming forward. He also told CBS News that the charity did not spend money on alcohol or engages in any other kind of excessive spending. 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. The saddest part is that it endeavors to hurt an organization that does so much to help our wounded soldiers. The group did lose points on its fundraising score, with roughly 22 cents spent to make a dollar, per the most recent available data. 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. What I'm worried about is, how can we be the most effective in meeting the needs of our warriors in whatever resources we have?". In an effort to narrow its focus, WWP has dropped some efforts in favor of supporting other organizations that specialize. He said you better do this or you are going to look disloyal to the organization, Mr. Chick said. In early 2016, New York Times Reporter Dave Philipps was working on a story about the Wounded Warrior Project which seemed like it would initially be a public interest piece discussing the work of this popular charity. The Wounded Warrior Project's mission is to honor and empower veterans, said Lopez, who lives in Elgin. Do the sources know the information? With time and support from donors, new meta-charities will arise to evaluate other areas of nonprofit activity. You do not reflect the sentiments of the more than 80,000 wounded soldiers we have helped, focusing instead on a few malcontents. According to data provided by Plenzler, a 2018 study on the organization's reputation within the veterans service organization community found that 83% of participants considered WWP a respected part of the military and veterans nonprofit space, up from just 13% in 2017. Peter J. Johnson Jr on the firing of WWP's CEO and COO. "So the needs of our population when that average was 27 years old is different than it is at 38, and it will be different when it's 48.". "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. Current price: $30.00. Several Effective Altruist organizations, including The Life You Can Save and GiveWell, provide information to donors about the impact of various charities addressing global poverty. This material may not be published, broadcast, rewritten, or redistributed. Since Wounded Warrior Project chief executive Steven Nardizzi and chief operating officer Al Giordano were fired by the board on Thursday, donations to the group have fallen, The New York Times reports. 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. When Mr. Nardizzi took over, in the depths of the 2009 economic downturn, most charities had dialed back their fund-raising efforts, figuring that the nation was in no position to give. Mutual Fund and ETF data provided by Refinitiv Lipper. Can we corroborate the information? In recent years, that dated thinking has been torn apart, appropriately replaced by the expectation that this sector should be judged on how effectively organizations solve social and environmental problems. Crucially, these evaluative organizations, called meta-charities, do not receive any funding from organizations they are evaluating. 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. With millions of good Samaritans regularly donating a portion of their paycheck to good causes, charities are booming unfortunately, not all of the money going into them is coming out the way we think. In an email to big donors, a fundraiser for the organization . Mar 10, 2016 Wounded Warrior Project executives fired in spending scandal. Mr. Millette said the charity encouraged him to highlight its role in helping him recover from PTSD and traumatic brain injury. WWP offers wounded warriors and their families lifesaving programs that help them manage PTSD, traumatic brain injury (TBI), combat stress, and other conditions and help them thrive in their next mission. One thing the Wounded Warrior Project can immediately do is travel economy class or by train and use the savings to make home visits to veterans to see that they are getting what is needed. 3. The ousted Chief Executive Officer and Chief Operating Officer of the Wounded Warrior Project are finding relief in a new independent report on the allegations against the military charity . The Wounded Warrior Project (WWP) is the largest veteran's charity in the United States. Dan Shannon of the Army, a father of three, who had served in Iraq, and, on Nov. 13, 2004, took a direct hit from an AK-47. This year, WWP surpassed the 100,000 mark in terms of veterans they provide assistance to. But it added that such events would be curtailed in the future.. Mr. Nardizzi fired Ms. Chapman, an Iraq veteran with PTSD, in 2012 as part of a management restructuring, she said. Former workers recounted buying business-class seats and regularly jetting around the country for minor meetings, or staying in $500-per-night hotel rooms. Connie Chapman, who was the director of the Wounded Warrior Project office in Seattle for two years, at a friends home in Eatonville, Wash. People could spend money on the most ridiculous thing and no one batted an eye, she said. Under the Charity Watch rating system, Wounded Warrior Project has a modest C+, up from a C in 2015, said Daniel Borochoff, the accountability organization's president. "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. " At the end of 2015, there were 96,695 individuals in WWP's database; by the end of 2018, there were 155,302, with growth staying fairly consistent year-over-year. For fiscal year 2015, Wounded Warrior reported a 92.9 percent. When you are considering whether to give, let your heart be open to stories but also ask how representative those stories are of actual clients or results. 76% OF WARRIORS EXPERIENCED FEWER PTSD SYMPTOMS after receiving treatment through Warrior Care Network 2 Over the past few years, WWP staff members have treated themselves to nights at five-star hotels, booked first class cross-country flights to attend minor meetings in-person, attended lavish conferences, and spent nearly 40 percent of their donations . 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. Money poured in. "[Now], I would tell you to look at the organization, the changes they've made and make an educated decision. You lead from the frontgood or badyou dont hide, he said, If no one is going to talk about this right now and it has to be me, then it has to be me.. 7. Re Helping Veterans Recover, Spending Lavishly on Itself (front page, Jan. 28): I was saddened to read of the wasteful spending at the Wounded Warrior Project. 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. They would just come up with numbers based on nothing, Mr. Lessard said. As a result, some philanthropic watchdog groups have criticized the Wounded Warrior Project for spending too heavily on itself. Mr. Odierno, who is the son of Gen. Raymond Odierno, a former chief of staff of the Army, became the groups interim chief executive Thursday evening and is conducting a nationwide search for a new leader. Michel duCille/Washington Post, via Getty Images. He said he was now interested in returning. "Wounded Warrior Project helped me reclaim my life," one reads, over a photo of single-amputee wounded veteran Sean Karpf, smiling proudly. Tracy Keil worries that will leave her. After Vietnam, many focused on advocacy in Washington. Powered and implemented by FactSet Digital Solutions. 2. This weeks Retro Report is the 13th in a documentary series. But investigations revealed that the organization spent millions of donor dollars on first-class airfare, employee retreats and extravagant salaries. What we consider before using anonymous sources. "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.". The councils mission includes defending charity spending on overhead and executive salaries, its website says. Mutual Fund and ETF data provided by Refinitiv Lipper. JACKSONVILLE, Fla. In 2014, after 10 years of rapid growth, the Wounded Warrior Project flew its roughly 500 employees to Colorado Springs for an all hands meeting at the five-star Broadmoor hotel. Regarding the criticism that WWP's portrayal of veterans in the past overemphasized traumatic wounds and veterans in need of lifelong help and support, Linnington said the organization's advertising approach is now different. Magazines, Or create a free account to access more articles, The Wounded Warrior Project Scandal Should Encourage More Philanthropy. He has never spoken publicly about his disagreements with Mr. Nardizzi, and declined to be interviewed. That said, there are clear indications that the organization is improving its financial practices. Charity Navigator also assessed that Wounded Warriors total revenue for 2014 was well over $340 million. As someone who lives with post-traumatic stress, Millette said he is aware of the wealth of good Wounded Warrior Project could do with its resources in that space. Im right here. 1 witness for the wounded was Staff Sgt. Mr. Kane said he lambasted Mr. Giordano for hiding behind a wounded veteran on camera and said he would cancel his donations. The Annual Warrior Survey from Wounded Warrior Project (WWP) shows post-9/11 wounded warriors face increasing financial hardship. 4. Do the sources know the information? Many soldiers have told me they would have committed suicide were it not for the Wounded Warrior Project. 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. The organization paid Mr. Melia at least $230,000 after he stepped down, according to tax forms. As the backpack project grew, Mr. Melia hired a few employees, including Mr. Nardizzi, a lawyer who had never served in the military but was an executive for a small nonprofit, the United Spinal Association, which served disabled veterans. From the inception of WWP's grant program in 2012 to the end of 2015, it awarded in total about $36.5 million worth of grants. 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. Why do the misdeeds of one nonprofit cause mistrust of all nonprofits? The Special Operations Warrior Foundation was founded in 1980, after the daring attempt to rescue 53 American hostages in Iran, which ended in the tragic loss of eight servicemen who left behind. But whether those fixes went far enough is, as the video demonstrates, still not clear. "These are groups that just get together over a pizza and a soda, to talk about the issues that are affecting them and their families, and look for ways to support each other.". He was medevaced out of Iraq, but only nine days after his near-fatal injury, the Walter Reed staff discharged him into outpatient status. Use of this site constitutes acceptance of our, Digital 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. WWP also put up strong numbers in financial health, with controlled spending on administrative expenses and a healthy reserve of capital, which speaks to the organization's ability to sustain itself over time. Anyone can read what you share. Annually, the group receives more than $300 million in donations (Cerully, Smith, Wilks, & Giglio, 2015). Former employees said they questioned the charitys focus on money and marketing techniques. Wounded Warrior Project Survey Shows 6 in 10 Wounded Veterans Are Struggling to Make Ends Meet. Linnington, who retired from the Army in 2015 and served as the first permanent director of the Pentagon's Defense POW/MIA Accounting Agency before taking the helm at Wounded Warrior Project, said he made the move over to the organization because of the positive impression it had made on him while he was still on active duty. And on Tuesday, it started a program to provide care for veterans with post-traumatic stress disorder and traumatic brain injuries, two of the most common injuries for veterans of recent wars. He noted, approvingly, that as of 2018, 64% of WWP spending goes to fund programs, up from about 54% in 2016. 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. Well, they didnt. Its chief operating officer, Albion Giordano, earned just over $369,000. All rights reserved. Today, The New York Times released a damning report on the renowned . Erick Millette, an Iraq veteran, said he quit after growing disillusioned about his work with a program called Warrior Speak, which involved veterans telling their stories of healing to audiences. Mr. Longoria said after he was fired, he fell into depression but was also relieved. Ive Ive never left the hospital grounds. Borochoff also said, however, that despite the public scrutiny, Wounded Warrior Project has always had better business practices than many groups in the space, even some with a good reputation in the community. But in its swift rise, it has also embraced aggressive styles of fund-raising, marketing and personnel management that have many current and former employees questioning whether it has drifted from its mission. 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.. By Friday afternoon, both phones had been disconnected. Veterans participate in a Soldier Ride on Jan. 8 in Marathon, Fla. Her comment was, Where have you been? And I said, What do you mean where have I been? As WWP has worked to become more collaborative with other organizations, Linnington indicated it has also pulled back from the aggressively protective posture regarding brand and logo that drew criticism in the past. But he acknowledged that was likely a function of WWP's phenomenally rapid growth and expansion. 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. Do you have a location near me? The development was confirmed by Abernathy MacGregor, a public relations firm hired to represent the veterans charity. By giving back, I was helping myself and helping other vets.. The nonprofit sector provides social services that governments cant or wont, including providing food, shelter and free higher education to the poor. Mr. Chick said he refused, but was ordered by his boss to write an email recommending the firing. The programs it did create for veterans often served more as showpieces for marketing than as efforts to address the actual needs of veterans. 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. Hearing that there was this waste of money, donor dollars that should have been going to servicemen and women that were injured, and that it was spent on [Wounded Warrior Project staff] having a good timeits a real disappointment, Dianne Kane told CBS News. Lavish Spending by the Wounded Warrior Project, https://www.nytimes.com/2016/01/30/opinion/lavish-spending-by-the-wounded-warrior-project.html, Jennifer Brown/Northjersey.com, via Associated Press, Helping Veterans Recover, Spending Lavishly on Itself. Former staff members said they had less time to develop therapeutic programs and so relied on giving veterans tickets to concerts and sporting events. from the invisible wounds of scandal The veterans collected donations at those events. But once they became outpatients, thousands of service members entered a system that had not kept up with the times, that was understaffed, poorly organized and generally second rate. Chief Financial Officer . You'll recall that,. I have met over 1,000 soldiers and their caregivers whose lives have been positively affected by the organization. Ive gone to all of my appointments. [2] That moment in February was part of the building pressure by donors, veterans and supporters of the organization that culminated Thursday night in the abrupt firing of Mr. Nardizzi and his second in command, Al Giordano, who together earned nearly $1 million per year. 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. 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 expensive corporate. But, as it turned out, reports of the death of Wounded Warrior Project have been greatly exaggerated.
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