By Randy Hutchinson
President of the BBB of the Mid-South
Reprinted from The Jackson Sun
I’ve written other columns over the years about regulatory crackdowns on charities that claim to serve veterans, but instead redirect donations to fund telemarketing campaigns and exorbitant salaries and lavish lifestyles for their executives. Unfortunately, much like the old Whac-a-Mole game, when one is knocked down, another one pops up.
In January, eleven states reached a settlement with Healing Heroes Network, a Florida-based charity that said 100 percent of donations and proceeds from a sweepstakes would help wounded veterans of the Iraq and Afghanistan wars. In reality, its 2017 tax return showed that out of $2.7 million in total expenses, less than $350,00 was spent on program services.
Healing Heroes Network also did business under other names, including American Injured Veterans, Harleys for Heroes and Welcome Home Heroes.
In 2019, the Florida Attorney General closed down a fraudulent veterans charity called VetMade Industries. It collected millions of dollars in donations to help train unemployed and disabled veterans, but one news account said it hadn’t trained a single veteran in the prior five years.
In 2018, four people from Indiana were indicted for running bogus charities called Wounded Warrior Foundation and Wounded Warrior Fund, an apparent attempt to mislead people into thinking they were donating to Wounded Warrior Project, a well-known, legitimate veterans charity. The defendants allegedly spent the money on drugs, gambling and other personal expenses.
One estimate says grateful and generous Americans give more than $2.5 billion a year to veterans charities. To be sure they’re legitimate, the BBB Wise Giving Alliance offers this advice:
- Avoid Mistaken Identity. Some veterans charity names sound alike. Make sure the organization you are considering is the one you want to support.
- Find Out What They Do. Don’t assume what the organization does based on their name alone. Look for a clear description of the charity’s programs in its appeals and on its website.
- Be Careful with Phone Appeals. If not managed properly, some telemarketing campaigns for veterans organizations can be an expensive way to raise funds with very little going to the organization. If called, do not hesitate to ask for written information or visit the group’s website to find out about its programs and finances before making a giving decision.
- Watch Out for Excessive Pressure. Don’t be pressured to make an immediate on-the-spot donation to a veterans organization. Charities should welcome your gift whenever you want to send it.
- Review Sweepstakes Claims Carefully. Be cautious about any sweepstakes that claims or implies the recipient is already a winner. The recipient is unlikely to have won but probably will have a chance among those that respond. For a national direct mail campaign, that might mean hundreds of thousands or millions of sweepstakes letters were distributed.
- Ask How Donated Items Will Be Used. Find out how the charity benefits from the collection and resale of used clothing and other in-kind gifts.
- Check out the charity on the BBB’s Give.org. You can also check with your state government’s charity registration agency, usually a division of either the Attorney General’s office or Secretary of State’s office. You can find veterans organizations that meet the 20 BBB Standards for Charity Accountability at Give.org.