The board of the Wounded Warriors Project, a national veterans advocacy group that has come under criticism for its handling of donations and spending, has ousted two top executives following an independent review of its finances.
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Wounded Warrior Project issued a statement CBS for not contacting the chair of the Wounded Warrior Project’s audit committee before broadcasting the story, but also said it was implementing cost cutting measure like only allowing employees to fly economy class. Charity watchdogs say it’s OK to keep a rainy-day fund, but groups should strive to spend as much as possible on their mission.
Eric Millette, a retired army staff sergeant, worked for the charity for two years as a motivational speaker, but finally quit over the spending. The CBS report also talked to former employees who accused the organization of making money off their injuries. “So you can have these big parties”.
“A lot of the warriors I saw needed mental health treatment”, an unidentified former employee added.
Wounded Warrior Project, founded in 2003, has its headquarters in Jacksonville. Data collected by Pro Publica shows that total revenue to the WWP grew from $18.6 million in the financial year ending in 2007 to $342 million in the one ending in 2014.
Captain Ryan Kules, the Director of Alumni for the WWP, denied that the charity spent excessively on conferences or booze. But many major donors were outraged, including Fred and Dianne Kane. “He’s come in on a Segway, he’s come in on a horse”, one former employee, speaking on condition of anonymity, told CBS.
“For him to be paid to raise money for veterans that were wounded in combat under his orders, I don’t think that’s right”, veteran Sgt. Eddie Wright told ABC News.
“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 their having a good time – it’s a real disappointment”, Dianne added.
The IRS filings said 76 percent of the budget, or $189,558,100, went to veterans programs – a share charity watchdogs would consider respectable.
One of the country’s most prominent veterans charities is under fire and looking for new leadership after two of its top executives were dismissed amid allegations the charity squandered millions on extravagant conferences, travel and fancy restaurants. WWP claims that figure is now up to 80 percent.
CBS News’ investigation said that spending under his leadership went from $1.7 million in 2010 to $26 million in 2014.
Charitywatch.org says Wounded Warriors spent just 54 percent on programs rather than overhead, for a C rating.
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For instance, the review “found that some policies, procedures and controls at WWP have not kept pace with the organization’s rapid growth in recent years and are in need of strengthening”, the organization said in its statement.
