Tag: Nonprofit Organizations

Wounded Warrior Project Spends Lavishly on Itself, Insiders Say

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.

They were celebrating their biggest year yet: $225 million raised and a work force that had nearly doubled. On the opening night, before three days of strategy sessions and team-building field trips, the staff gathered in the hotel courtyard. 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.

That evening is emblematic of the polished and well-financed image cultivated by the Wounded Warrior Project, the country’s largest and fastest-growing veterans charity.

Since its inception in 2003 as a basement operation handing out backpacks to wounded veterans, the charity has evolved into a fund-raising giant, taking in more than $372 million in 2015 — largely through small donations from people over 65.
Today, the charity has 22 locations offering programs to help veterans readjust to society, attend school, find work and participate in athletics. It contributes millions to smaller veterans groups. And it has become a brand name, its logo emblazoned on sneakers, paper towel packs and television commercials that run dozens of times.

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.

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. Former workers recounted buying business-class seats and regularly jetting around the country for minor meetings, or staying in $500-per-night hotel rooms.

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.

About 40 percent of the organization’s donations in 2014 were spent on its overhead, or about $124 million, according to the charity-rating group Charity Navigator. 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. As a result, some philanthropic watchdog groups have criticized the Wounded Warrior Project for spending too heavily on itself.

Some of its own employees have criticized it, too. William Chick, a former supervisor, spent five years with the Wounded Warrior Project. “It slowly had less focus on veterans and more on raising money and protecting the organization,” he said.

Mr. Chick, who was fired in 2012 after a dispute with his supervisor, said he saw the Wounded Warrior Project help hundreds of veterans. But like other former employees, he said the group swiftly fired anyone leaders considered a “bad cultural fit.”

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Eighteen former employees — many of them wounded veterans themselves — said they had been fired for seemingly minor missteps or perceived insubordination. At least half a dozen former employees said they were let go after raising questions about ineffective programs or spending.

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 spokeswoman, Ayla Tezel, said that more than a third of the charity’s employees are veterans, and that the organization is rated one of the top nonprofits to work for by The NonProfit Times.

“Sometimes employees make poor choices that can’t be overlooked,” Ms. Tezel said. “And sometimes those employees are veterans.”

A For-Profit Model

Veterans organizations in the United States often reflect the era in which they were created: After World War I, they resembled fraternal orders. After Vietnam, many focused on advocacy in Washington.

First Book mixes market forces and philanthropy to help poor children

In a small, two-bedroom apartment in Corona, Calif., Trinity Santos, 5, reads her hardcover copy of “Green Eggs and Ham” again and again. She never tires of the Dr. Seuss classic, sometimes reading it to her 3-year-old brother, Joshua, said their mother, Diane.

Life is a struggle for the Santos family. Diane worked as a waitress before her children were born, and the family of four lives on the $35,000 that her husband earns as a phlebotomist. They don’t have much.

But the children own the four dozen books in a small, homemade bookcase, courtesy of First Book, a nonprofit organization that combines market forces and philanthropy to get new books into the hands of poor children to encourage early reading.

“I didn’t have books at home when I was growing up in the Philippines,” said Diane Santos, 33, who connected with First Book through a local parent­ education program she attended shortly after Trinity was born. “I learned the most important thing is reading with them, talking to them, introducing new words.”

First Book, founded in the District in 1992, has grown into a sophisticated national enterprise that gave away more than 15 million new books to low-income children and teens in 2015. But as financial troubles have deepened in households nationwide, First Book has turned to items well beyond books, this year adding winter coats, nonperishable snacks, toothpaste, fleece blankets, underwear and other goods to its charitable arsenal.

“There’s a profound need that is really unprecedented,” said Kyle Zimmer, 55, a onetime corporate lawyer who formed First Book with two friends after she volunteered at a D.C. soup kitchen and realized that many of the children had no books at home.

Even as the economy recovers from the housing collapse of 2008, many families continue to falter. The number of homeless children in public schools has doubled since before the recession, reaching a record total of 1.36 million nationwide in the 2013-2014 school year, the most recent one for which data is available.