Millette said he witnessed lavish spending on staff, with big catered parties. But after recent tax forms reflected questionable spending by the veterans charity on staff expenditures, including $26 million on conferences and meetings at luxury hotels in 2014 alone, Fred Kane called for Nardizzi to be fired.The expenditure on conferences and travel was up from just $1.7 million in 2010, according to reports. Citing whistleblowers, stories by CBS and The New York Times detailed allegations of waste and abuse, lavish all-hands conferences and unbridled spending on ticketed outings that did little lasting good for the veterans they purported to help. March 11, 2016 When the Wounded Warrior Project was hit in January with multiple accusations in the news media of lavish spending on travel, conferences and public relations, and a toxic. He started by handing out backpacks of comfort items to wounded troops. Steven Nardizzi and Al Giordano were fired from their posts as chief executive and chief operating officer, respectively, for the Wounded Warrior Project on Thursday. "Yeah. Since then, however, the rate of investment has grown substantially. He was fired in 2014 for what executives told him was insubordination. The reporter and at least one editor know the identity of the source. The saddest part is that it endeavors to hurt an organization that does so much to help our wounded soldiers. As a result, some philanthropic watchdog groups have criticized the Wounded Warrior Project for spending too heavily on itself. "TAPS believed these cancers were due to [toxic exposure]. And sometimes those employees are veterans.. Mr. Chick, who was fired in 2012 after a dispute with his supervisor, said he saw the Wounded Warrior Project help hundreds of veterans. He noted, approvingly, that as of 2018, 64% of WWP spending goes to fund programs, up from about 54% in 2016. Millette, 41, who still lives in Jacksonville, Florida, where Wounded Warrior Project is headquartered, told Military.com he stands by all the claims he made about the organization -- $2,500 bar tabs and other prodigal spending at staff-only team-building events, a permissive "good old boys" atmosphere among leadership, and a tendency to push certain badly wounded veterans into the spotlight again and again for what appeared to be promotional purposes rather than for their benefit and well-being. Money poured in. As a subscriber, you have 10 gift articles to give each month. He said you better do this or you are going to look disloyal to the organization, Mr. Chick said. This material may not be published, broadcast, rewritten or redistributed. 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. Its chief operating officer, Albion Giordano, earned just over $369,000. 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 . The organization will still take action in cases of suspected fraud, he said. Wounded Warrior Project's Chief Executive Officer Steven Nardizzi reported a salary of $473,000. He watched a young former Army captain who had lost an arm and a leg in Afghanistan offer CBS News awkwardly recited defenses of the group, the nations largest and fastest-growing charity for veterans. With time and support from donors, new meta-charities will arise to evaluate other areas of nonprofit activity. There was no one there to tell us what was going on or how we were going to get through this.. The Walter Reed Army Medical Center neglect scandal refers to a series of allegations of unsatisfactory conditions, treatment of patients, and management at the Walter Reed Army Medical Center (WRAMC) in Washington, D.C. culminating in two articles published by The Washington Post in February 2007. 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. Tracy Keil worries that will leave her. 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. 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. Mr. Nardizzi fired Ms. Chapman, an Iraq veteran with PTSD, in 2012 as part of a management restructuring, she said. 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. 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 His marriage fell apart as the result of the pressure, he said; he received personal threats. The story broke in The Washington Post in the winter of 2007, with a series about Walter Reed Army Medical Center. For fiscal year 2015, Wounded Warrior reported a 92.9 percent satisfaction rate with the organizations services. The Wounded Warrior Project (WWP) is the largest veteran's charity in the United States. 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. See the metrics below for more information. How do we help them? Recently, however, they have been accused of being a scam and donating an insignificant portion of their funds to their declared cause. A major donor to the Wounded Warrior Project veterans' charity called Thursday for the nonprofit's CEO's to resign in light of allegations of lavish spending on staff meetings, according to . 76% OF WARRIORS EXPERIENCED FEWER PTSD SYMPTOMS after receiving treatment through Warrior Care Network 2 Such unjustified distrust of high-quality nonprofits could undermine our society. Charity Watch, an independent monitoring group, gave Wounded Warrior Project a D rating in 2011 and has not given it a grade higher than C since. "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. " Wounded Warrior Project ( WWP) is an American charity and veterans service organization that offers a variety of programs, services and events for wounded veterans of the military actions following September 11, 2001. 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. At least half a dozen former employees said they were let go after raising questions about ineffective programs or spending. Its a mind-set that keeps the sector small and dooms efforts from the start. It contributes millions to smaller veterans groups. I wasnt speaking anywhere unless I was collecting a check, said Mr. Millette, who worked for the program for about two years, until he left in 2014. You do not reflect the sentiments of the more than 80,000 wounded soldiers we have helped, focusing instead on a few malcontents. But what of the veterans in need? The spokeswoman, Ayla Tezel, said that more than a third of the charitys employees are veterans, and that the organization is rated one of the top nonprofits to work for by The NonProfit Times. "So when I saw what was going on in the media, I was, believe it or not, automatically attracted to try and help.". Many soldiers have told me they would have committed suicide were it not for the Wounded Warrior Project. Jesse Longoria, a former Marine sniper whose right arm was amputated in 2012 after complications from injuries sustained in Iraq, with his 16-month-old son, Noah. 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. We put warriors on a pedestal and the nation wrapped its arms around that concept.. Will we ever be 380 again? Jan 26, 2023. "Their mission is to honor and empower wounded warriors, but what the public doesn't see is how they spend their money," he said. He said he was now interested in returning. And it has become a brand name, its logo emblazoned on sneakers, paper towel packs and television commercials that run dozens of times. "Wounded Warrior Project helped me reclaim my life," one reads, over a photo of single-amputee wounded veteran Sean Karpf, smiling proudly. Recently, a social movement called Effective Altruism has been pushing the nonprofit sector to become more transparent and accountable. About 500 staff members attended the four-day conference in Colorado, which CBS News reported cost about $3 million. Sometimes employees make poor choices that cant be overlooked, Ms. Tezel said. One significant ongoing organizational investment has provided for a two-week intensive post-traumatic stress and traumatic brain injury outpatient program at four hospitals: Massachusetts General Hospital, Emory University Hospital, Rush University Medical Center and Ronald Reagan UCLA Medical Center. 5. Who does Wounded Warrior Project serve? 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. 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. They were celebrating their biggest year yet: $225 million raised and a work force that had nearly doubled. Mr. Nardizzi said his staff was constantly monitoring metrics to try to get the most out of every dollar donated. "Going to a nice fancy restaurant is not team building. "The warriors that joined Wounded Warrior Project, you know, in 2003 are today 15 years older than they were when they joined. The sergeant describes roaming Walter Reeds grounds wearing only a hospital gown and robe for two hours before making it to the small room he was assigned. Wounded Warrior Project declined CBS News' interview requests for Nardizzi in January, but instead sent Director of Alumni and a recipient of their services, Captain Ryan Kules, who denied there was excessive spending on conferences. The nonprofit sector provides social services that governments cant or wont, including providing food, shelter and free higher education to the poor. Peter J. Johnson Jr on the firing of WWP's CEO and COO. A report on spending scandal exposed by News4Jax and national media outlets in January blames the Wounded Warrior Project's board, former employees who spoke about the charity's spending practices . Why do the misdeeds of one nonprofit cause mistrust of all nonprofits? 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. The secret sauce was the brand, and the mission, said Dave Ward, a vice president who left in 2015. 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. Mr. Longoria said after he was fired, he fell into depression but was also relieved. SVA leaders joined WWP at the White House in April for the latter organization's 12th annual warrior ride. With the support of our community of donors . Show your support for Wounded Warrior Project with this tee! 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. Powered and implemented by FactSet Digital Solutions. 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. It wasn't just about lavish all-hands gatherings, although those quickly became a thing of the past. But he acknowledged that was likely a function of WWP's phenomenally rapid growth and expansion. By the time the board met Thursday to dismiss the two men, contributions were down and it had in hand an internal investigation that convinced it that the top leadership had to go. In 2015, Wounded Warrior Project seemed, in the world of veterans' support organizations, to have it all: a compelling mission. I would push back and they would get very frustrated and yell. The programs it did create for veterans often served more as showpieces for marketing than as efforts to address the actual needs of veterans. In news media accounts and at a Congressional hearing, the No. Donations to Wounded Warrior Project Slow After Spending Scandal. 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.. I loved it, the former Marine sniper said. It's really about the resilience, the exceptionalism of our warriors.". "The report I issued on spending at the Wounded Warrior Project highlighted a number of concerns that needed to be addressed," he said in a statement. The annual surveys of the wounded warriors the organization serves help direct its focus, Linnington says. Slightly more than half of the Kanes' donations directly benefitted veterans, according to CBS News. But while Millette, who spoke with Military.com earlier this year, said he still thinks the organization tends to lean too hard on showcasing veterans with dramatic visible wounds in its publicity materials and public events, he also said he has observed a remarkable overall turnaround in the organization. 2023 FOX News Network, LLC. Kaine, in the recent interview, also questioned Nardizzis apparent public absence while his organization has been under scrutiny. Dinners and alcoholjust total excess." Youre looking at companies that are getting it right, treating their employees right, delivering great services and great products, then are growing the brand to support all of that.. "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.". 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. 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.. Find Wounded Warrior Project shirts, headwear and other WWP merchandise at WWPShop.org Anyone can read what you share. 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. "If you look at our 990 [annual IRS financial filing], we went from $380 million a year to $200 million. 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. Today, the charity has 22 locations offering programs to help veterans readjust to society, attend school, find work and participate in athletics. 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. Mutual Fund and ETF data provided by Refinitiv Lipper. 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. 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. You'll recall that,. Kane said he has cut charitable ties with the Wounded Warrior Project, embarking on a new charge to effect change at the organization. Its founder, John Melia, was a Marine veteran who had been injured in a helicopter crash off the coast of Somalia in 1992. More than 6 out of 10 (64.2%) WWP-registered Alumni say they. A week later, he was back at work when a fistfight broke out between veteran mentors who had been drinking after one of his training sessions. Besides devastating both donors and wounded veterans, this news could undercut public support for the nonprofit sector as a whole. The New York Times' recent investigation into the Wounded Warrior Project (WWP) has sent rumbles throughout through the philanthropy community. Why don't you offer services to ALL veterans? This material may not be published, broadcast, rewritten, or redistributed. During WWP's nadir and through its turnaround, its roster of wounded warriors and "family support members" has only grown -- a fact that speaks as much to the persistent and growing need as it does to the organization's success in the space. Part of the organizations drive for growth has been a tough stance toward workers considered unproductive or disloyal. 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. Its a hard balance, but I think we strike the right balance, he said. Charity Navigator's rating for WWP has fluctuated over the years: It dipped down to two stars in 2010 as the organization grew, then briefly rose to a full four stars in 2017, reflecting the delayed arrival of 2015 data. "[Now], I would tell you to look at the organization, the changes they've made and make an educated decision. The Walter Reed Story, https://www.nytimes.com/2013/09/30/booming/and-this-was-called-care-the-walter-reed-story.html. Seeing them do that restores my faith in the organization.". Both bills passed in amended forms that did not significantly affect the charity, Mr. Nardizzi said. "And secondly, with the American people who support our warriors.". The video project was started with a grant from Christopher Buck. series about Walter Reed Army Medical Center. 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. The veterans collected donations at those events. Millette is now best known as a whistleblower who went on the record to decry what he saw as WWP's lavish spending and interest in nurturing its public image, rather than providing meaningful support to its constituents. 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. However, everything changed when CBS News started researching its own story about the Wounded Warrior Project, one with a . It is perfectly reasonable to hold Wounded Warrior or any other organization nonprofit, for-profit or governmental accountable for lavish spending or gaming its own metrics. By 2009, the group had grown to about 50 employees and $21 million in revenue. "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 Wounded Warrior Project is in hot water. The Wounded Warrior Project spent more than $34 million on fund-raising in 2014, according to tax records. All Rights Reserved. "We've changed that too, honestly," he said. Many Americans gave their trust and. Ive Ive never left the hospital grounds. Breaking down the group's finances, Charity Navigator says . But people close to the organization also say that, as WWP expanded from a tiny organization distributing free backpacks to wounded veterans in the early 2000s to become one of the most well resourced and influential veterans organizations within a decade, it generated more than its share of ill will. 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. In fiscal year 2013, the Wounded Warriors Foundation took in $234 million in donations and dedicated 80 percent of that amount to programs for wounded veterans, according to tax records. "That report also made clear that the Wounded Warrior Project had made some positive steps to regain the public's trust. Religion and Technology Should Unite for the Greater Good, The 25 Defining Works of the Black Renaissance. Mr. Chicks own supervisor told him to fire Mr. Longoria. Why was that poor guy placed in front of a CBS News crew? Mr. Kane, who has raised more than $325,000 for the organization, asked in an email sent in February to dozens of high-level donors. In 2014, the Wounded Warrior Project lobbied in California and Florida to fight proposals that would have required nonprofits to increase financial transparency. The 270 Wounded Warriors competing in a variety of sports from June 19-28 at the Marine Corps Base in Quantico, Virginia, come from every branch of military service. The veterans charity group fired CEO Steven Nardizzi and COO Al Giordano late last week, following a January . Anyone can read what you share. The Wounded Warrior Projects roots are more humble. It got under my skin, started eating at me, he said. 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. Can we corroborate the information? 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.". The group did lose points on its fundraising score, with roughly 22 cents spent to make a dollar, per the most recent available data. There were charges of spending too much on expenses (e.g., fund-raising, travel, and [] Skip to content Log In He's come in on a Segway, he's come in on a horse, one employee told CBS News. 3. Suddenly, a spotlight focused on a 10-story bell tower where the chief executive, Steven Nardizzi, stepped off the edge and rappelled toward the cheering crowd. Wounded Warrior Project officials are firing half of their executives, closing nine offices and redirecting millions in spending to mental health care programs and partnerships as part of an. I knew where the money was going to. 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. William Chick, a former supervisor, spent five years with the Wounded Warrior Project. He didnt want to leave, but it was obvious something was going to happen, Ms. Melia said. IN JANUARY, when I wrote about a publisher's creative team-up involving Wounded Warrior . 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 parties, hotel and travel, according to a statement released on behalf of the embattled organization. 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. But, as it turned out, reports of the death of Wounded Warrior Project have been greatly exaggerated. Board members called a few former employees this week to thank them for coming forward. Millette also marvels at the way the organization has overhauled itself and rebuilt, even as many predicted that it would crumble under the pressure. All rights reserved. You've successfully subscribed to this newsletter! I look at companies like Starbucks thats the model, Mr. Nardizzi said. The country's most prominent veteran's . This year, WWP surpassed the 100,000 mark in terms of veterans they provide assistance to. In 2007, the scandalous treatment of wounded soldiers at Walter Reed Army Medical Center shocked the nation. All staff members flying to the charitys office at a military hospital in Germany traveled in business class, employees 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. 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. The Wounded Warrior Project asserts that it spends 80 percent of donations on programs, but former employees and charity watchdogs say the charity inflates its number by using practices such as counting some marketing materials as educational. Wounded Warrior Project says 80% of their money is spent on programs for veterans. Staying at a lavish hotel at the beach here in Jacksonville, and requiring staff that lives in the area to stay at the hotel is not team building," he told CBS News. Peter J. Johnson Jr on the firing of WWP's CEO and COO. On the opening night, before three days of strategy sessions and team-building field trips, the staff gathered in the hotel courtyard. And This Was Called Care? 2023 FOX News Network, LLC. Former employees said they questioned the charitys focus on money and marketing techniques. The Wounded Warrior Project (WWP), a fast growing and media-savvy charity serving veterans, has recently been in the news and not in a good way. CBS News' investigation into the Wounded Warrior Project's spending on veterans has sparked heated debate online. 2. Mr. Chick said he refused, but was ordered by his boss to write an email recommending the firing. Mr. Kane said the leaders failure to take responsibility shows a total lack of regard for the mission, the alumni, the employees, proud supporter organizations and the thousands of other individual and corporate donors. He canceled his own contributions and encouraged others to do the same. For fiscal year 2015, Wounded Warrior reported a 92.9 percent. Have they proved reliable in the past? Mar 10, 2016 Wounded Warrior Project executives fired in spending scandal. The Warriors to Work program, for instance, was intended to provide one-on-one counseling to develop rsums and interview skills, then place veterans in suitable jobs. After Mr. Kanes email to other donors, he said he got a call from Mr. Giordano. It was a very coercive conversation.. 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. Report Calls Out Wounded Warrior Project for Excessive, 'Lavish' Spending. The spending began to attract attention. 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. The Marine Corps Law Enforcement Foundation provides more than 98 percent toveterans.