Donors need to be particularly careful when donating to veterans and military charities. Unscrupulous fundraisers know that it is relatively easy to raise money for this cause because playing on both the empathy and patriotism of potential donors can pack a double punch, making it more difficult for people to say no.
One thing that donors should keep in mind is that there is a difference between a worthy cause and a worthy charity. If you are someone who feels strongly about supporting veterans’ causes, resist the urge to donate simply because you received a telemarketing call, solicitation letter, or were otherwise asked to donate. There are many great veterans charities that will use your donations efficiently and impactfully, but there are many others that will exploit your generosity while spending your donations irresponsibly. It’s important to know which are which before opening your wallet.
Donors often ask CharityWatch if a particular veterans charity is “legitimate.” While this is a worthwhile question, it is only one step in ensuring that any donation you are considering making to a charity will be used the way you intend. The government is prohibited from creating laws that limit charity overhead spending. What this means is that a charity that is “legitimate” due to being properly registered with the IRS and state agencies can legally spend 99% of your donation on overhead expenses.
This Veterans Day follow CharityWatch’s 5 Steps for Informed Giving and read the below list of F-Rated Veterans & Military nonprofits to consider which organizations you may want to avoid.
In addition, view CharityWatch’s list of Top-Rated Veterans & Military Charities to identify an efficient charity to support that has also met CharityWatch’s benchmarks for governance and transparency
“F” Rated Veterans & Military Charities
Adoptaplatoon Soldier Support Effort has a mission of providing deployed military service members with quality of life and morale lifting packages. In an article we published in 2019, CharityWatch called on Adoptaplatoon to adopt better accountability.
Adoptaplatoon is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
From CharityWatch Analysts’ Notes on Adoptaplatoon:
AMVETS National Service Foundation has a mission of providing support to veterans through service programs as well as providing community and youth-oriented programs designed to promote unity and patriotism.
AMVETS National Service Foundation is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
CharityWatch provides a separate rating for AMVETS National Headquarters.
Disabled Veterans National Foundation has a mission to change the lives of men and women who came home wounded or sick after defending our safety and freedom.
Disabled Veterans National Foundation is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
Read CharityWatch’s many Articles & Alerts on Disabled Veterans National Foundation (DVNF) here.
From CharityWatch Analysts’ Notes:
Disabled Veterans National Foundation (DVNF) reports compensating three vendors an aggregate of approximately $23.1 million during 2022. The largest amount, $21,888,878, went to a company called Innovairre for “Direct Mail prod[uction]”, according to DVNF’s audited financial statements of the same year.
In April 2020 DVNF applied for and received a Paycheck Protection Program (PPP) loan in the amount of $169,600.
For The Troops has a mission to send care packages filled with basic necessities, such as snack items, DVDs, CDs, and personal care items and magazines to our troops around the world.
For The Troops is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
From CharityWatch Analysts’ Notes:
Help Heal Veterans has a mission to enrich the lives of veterans & military personnel. Manufactures & distributes therapeutic arts & crafts kits to support the healing of veterans & active military; educates the public on the needs of veterans; and strives to make a positive environmental impact.
Help Heal Veterans is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
Select CharityWatch Articles on Help Heal Veterans:
Leadership Booted at Dishonored Veterans Charity Ordered to Pay $2.5 Million Restitution
Homes for Veterans has a mission to construct handicap accessible homes for disabled veterans of war.
Homes for Veterans is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
HonorBound Foundation has a mission to serve veterans and their families with honor, dignity, and respect by advocating for and providing immediate assistance to them during times of crisis.
HonorBound Foundation is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
Mutts With A Mission has a mission to provide selected, specially trained service/assistance dogs to qualified veterans, wounded warriors, law enforcement officers, federal agents and first responders. To allow qualified candidates the opportunity to train qualified dogs as service dogs.
Mutts With A Mission is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
From CharityWatch Analyst’ Notes on Mutts With A Mission:
Over 90% of the Organization’s support is from the direct mail campaigns directed by one professional fundraising firm, ForthRight Strategy. One of the Organization’s Trustees is employed by ForthRight Strategy and serves as the Senior Account Executive over the Organization’s direct mail program. The organization pays ForthRight Strategy a fee based upon pieces of mail produced in the direct mail campaign and is not contingent upon revenue generated.
Paralyzed Veterans of America has a mission to be the leading advocate for quality healthcare for PVA members; research and education addressing spinal cord injury and dysfunction; benefits available as a result of members’ military service; civil rights and opportunities that maximize the independence of members.
Paralyzed Veterans of America is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
Read Veterans Charities Protest Their F’s.
From CharityWatch Analysts’ Notes:
According to the Paralyzed Veterans of America (PVA) consolidated audit of June 30, 2023 (Note 21, Related Parties):
Purple Heart Foundation is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
From CharityWatch Analysts’ Notes:
According to the Purple Heart Foundation consolidated audit of June 30, 2022 (Note 7, Related Party Transactions):
According to the Purple Heart Foundation consolidated audit of June 30, 2022 (Note 5, Paycheck Protection Program (PPP) Funding):
Veterans of Foreign Wars has a mission to foster camaraderie among United States veterans of overseas conflicts. To serve our veterans, the military and our communities. To advocate on behalf of all veterans.
Veterans of Foreign Wars is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.
From CharityWatch Analyst Notes on Veterans of Foreign Wars:
According to the Veterans of Foreign Wars of the United States (VFW) audit of August 31, 2022 (Note B, Summary of Significant Accounting Policies, Deconsolidation of VFW Foundation):
“The Veterans of Foreign Wars Foundation (the VFW Foundation) was previously presented in the consolidated financial statements as of and for the year ended August 31, 2021. On March 29, 2022, the VFW Foundation adopted amended bylaws that changed the composition of the board of directors subsequent to which the VFW no longer has the ability to appoint or control a majority of the VFW Foundation board members. Accordingly, the VFW deconsolidated the VFW Foundation and the effect is included with the statement of activities.”
Veterans Relief Network has a mission to provide financial assistance to U.S. military veterans and their families experiencing financial difficulty.
Veterans Relief Network is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.
From CharityWatch Analysts’ Notes:
TroopsDirect has a mission to supply globally positioned U.S. military units with items that may not be issued or readily available through government channels; specializes in medical, operational, & tactical support; advocates for our military through public outreach & education regarding the needs & risks associated with their service.
TroopsDirect is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, CharityWatch determined that it does not spend the donations it receives very efficiently.