Bill Gates and the 3-Story-High Philanthropic “Selfie”

Linsey McGoey wonders aloud in the Guardian whether philanthropy is better off once the major donor has died—or, as she puts it, “Is the most effective philanthropist a dead one?”

McGoey seems to believe that the celebrity status of some billionaire donors gets in the way of necessary critiques of their financially backed influence. She uses as an example of that blinding celebrity halo a bizarre scene that played out when Bill Gates turned 60.

To mark the occasion, more than 1,000 schoolchildren in Chennai, India, were photographed in the courtyard of their school holding life-sized cutouts of Gates’s face, raised above their heads in military salute. A three-story-high image of Gates beams from the rear of the configuration, featuring an upbeat slogan: “Grow rich. Help others.”

She contrasts this to the understated approach of the Wellcome Foundation which “creates about the same ‘good,’ measured in financial contributions, many members of the public haven’t even heard of it—let alone praise the charity in the same way that the Gates Foundation is lauded.”

“Most organizations on a par with the Gates Foundation are fair game for academic and journalistic investigation,” she writes:

When a health catastrophe strikes, many governments and UN organizations such as the World Health Organization are subjected to sustained internal and external review. The Gates Foundation, while as powerful, rarely faces the same scrutiny.

We need to challenge this silence. We need loudly to ask an uncomfortable question: do foundations narrow wealth inequalities or simply preserve them? Are foundations at their most radical when they exist to serve a benefactor’s hopes and whims—or when they’re emancipated from such an obligation?

McGooey generally believes that it is hard to be clearheaded about social inequities when that is the way that you, personally, have made your money. She posits that the “big three” U.S. foundations—Ford, Rockefeller and Carnegie—only began to sympathize with labor and civil rights movements after their founders were dead, and that Ford’s grandson Henry actually resigned from the foundation in in 1977, writing that “a system that makes the foundation possible very probably is worth preserving.”—Ruth McCambridge

Looking for Nonprofit Leaders among MacArthur Geniuses

The John D. and Catherine T. MacArthur Foundation announced the 24 winners of the MacArthur Fellows awards, known widely in the public as the “genius awards.” Each of the genius award winners will get $625,000 over five years to be used however they might wish. Cecilia Conrad, a vice president of the foundation and director of the fellows program, described the winners as creative in their fields “with the potential for more. We kind of want to catch them before they really make it.”

There is always a strong element of nonprofit or civil society leadership reflected in the array of genius grant winners. In this year’s list, three of the notable winners should be quite recognizable to NPQ readers: Juan Salgado, the president and CEO of the Instituto del Progreso Latino in Chicago, known for innovative workforce development programs; Ta-Nehisi Coates, a writer for the Atlantic and known for his articles and books on racial justice issues; and Gary Cohen, founder of Health Care Without Harm, addressing the toxic waste and other polluting agents caused by American hospitals.

For NPQ readers, a number of MacArthur genius winners have been or become prominent players in the nonprofit arena. A few of them include:

  • Historian, literary critic, Harvard professor, and racial justice activist Henry Louis Gates (1981)
  • Director of the Middle East studies at Johns Hopkins University’s School of Advanced International Studies, known for his enthusiasm for George W. Bush’s invasion of Iraq, the late Fouad Ajami (1982)
  • Federal tax and economics expert, first director of the Congressional Budget Office, and appointed by President Obama to the Simpson-Bowles Commission on fiscal reform Alice Rivlin (1983)
  • Industrial Areas Foundation (IAF) organizer Ernie Cortes and Ashoka founder Bill Drayton (1984)
  • Founder of the Children’s Defense Fund Marion Wright Edelman (1985)
  • Founder of the Overseas Development Council, the Worldwatch Institute, and the Earth Policy Institute Lester Brown (1986)
  • Progressive educator and supporter of the “small schools” movement Deborah Meier (1987)
  • Founder of the Hispanic Housing Development Corporation in Chicago Hipolito (Paul) Roldan, and founder and director of the Joint Center for Political and Economic Studies in Washington, Eddie N. Williams (1988)
  • Champion of youth-led media and founder of Youth Communications Keith Hefner (1989)
  • Founder of the National Center for Neighborhood Enterprise Bob Woodson and founder of the Tacolcy Economic Development Corporation focused on restoring Liberty City Otis Pitts (1990)
  • Monsignor William Linder Jr., founder of the New Community Corporation in Newark (1991)
  • President and executive director of the Southern Mutual Help Association in rural Louisiana Lorna Bourg (1992)
  • Paul Farmer, who established the international health organization known for its post-earthquake work in Haiti, Partners in Health and Amory Lovins, the energy policy expert who headed the Rocky Mountain Institute (1993)
  • Carolyn McKecuen, founder of the Take Our Daughters and Sons to Work Foundation (1994)
  • Disaster relief specialist Frederick Cuny, who disappeared while on a mission to Chechnya in 1995 (1995)
  • Bill Strickland, founder of the Manchester Bidwell Corporation that provides job training to youth and adults in the Pittsburgh area, Martin Eakes, a Ford Foundation trustee and founder of the Center for Community Self-Help, Dorothy Stoneman, founder of YouthBuild, and Bob Greenstein, founder of the Center for Budget and Policy Priorities (1996)
  • Founder of the Native American Community Development Corporation and the Blackfeet National Bank—and namesake of the class action litigation that challenged the U.S. government on its management of Indian trust lands—the late Elouise Cobell (1997)
  • Founding president of the Asian Pacific American Legal Center and former chair of the California Endowment board Stewart Kwoh, founder of the Center for Public Integrity Chuck Lewis, and urban critic Mike Davis (1998)
  • Founder of the Freelancers Union Sara Horowitz (1999)
  • Former policy director of the National Council of La Raza and currently director of President Obama’s Domestic Policy Council Cecilia Muñoz (2000)
  • Executive Director of the New York-based NGO Human Rights in China, vice chairman of the steering committee of the World Movement for Democracy, and founder of the bilingual China Digital Times Xiao Qiang (2001)
  • Former senior fellow at the New America Foundation and award-winning journalist writing about social welfare policy, Katherine Boo (2002)
  • World Bank president Jim Yong Kim (2003)
  • Katherine Gottlieb, Alaskan nonprofit health care provider (2004)
  • Founder of Sustainable South Bronx Majora Carter (2005)
  • Founder of the Institute for OneWorld Health Victoria Hale (2006)
  • Esther Duflo, economist, co-founder of the Abdul Latif Jameel Poverty Action Lab (J-PAL), and professor of Poverty Alleviation and Development Economics at the Massachusetts Institute of Technology (2009)
  • Emanuel Saez, economist at the University of California Berkeley, a research partner of Thomas Piketty on issues of economic inequality (2010)
  • Maurice Lim Miller, founder of Asian Neighborhood Design, founder of the Family Independence Initiative, and appointed by President Obama to the Council for Community Solutions, and Laura Poitras, filmmaker of Edward Snowden’s NSA revelations and escape from the U.S. (2012)
  • Ai-Jen Poo, executive director of the National Domestic Workers Alliance (2014)

By virtue of this list, it seems that the MacArthur Foundation has recognized nonprofit leaders who merit their fame. A couple have had some downturns in their work, notably Pitts, and there are some whose fame others would suggest is a bit overdone, but the overall list is one of nonprofit leaders who largely merit the recognition that they have received. To the extent that these leaders have stayed and continued their work in the nonprofit sector and for social change, the MacArthur Foundation’s genius awards may be said to have helped advance the nonprofit sector as a whole.—Rick Cohen

Redlining as a Product of the Racist/Classist Pseudoscience of Eugenics

Between 1929 and 1974, according to the Associated Press, 7,600 North Carolinians were sterilized in a state-sponsored eugenics program. The victims of this governmental action were considered “feebleminded” and deemed “undesirable,” at least in terms of potential reproduction. In 2002, the then-governor of North Carolina, Mike Easley, apologized for the state-sponsored eugenics effort. As of last year, North Carolina became the first state with a history of state-sponsored eugenics to compensate surviving victims, 220 of whom received payments of $20,000 each. In this year’s state budget, each victim will receive an additional $15,000 payment.

The forcibly sterilized victims of this program were typically poor and primarily black. Given the years that have passed, most of them are no longer alive to collect their compensation as victims directly. “They should have already paid the victims,” Elnora Mills of Brunswick County, North Carolina, herself sterilized by an order of the North Carolina Eugenics board, told Raleigh’s WECT. “It bothers me. I will never forgive the state for what they did to me. My heart goes out to all of the other victims.”

Joining former governor Easely, current governor Pat McCrory also expressed contrition for the state’s behavior. WECT reported that McCrory sent a letter along with the first checks in 2014, telling the recipients, “This payment cannot compensate for the suffering you have endured as a result of the North Carolina Eugenics Board Program, but I hope you find some solace that this payment acknowledges that the actions of the eugenics board were wrong.”

State-sponsored eugenics wasn’t and isn’t a partisan political issue, or at least it shouldn’t be. Easely was a Democrat; McCrory is a Republican. In a recent op-ed, North Carolina’s Republican senator Thom Tillis, a prime advocate for the compensation payments, described some of the horror of the state’s forced sterilization policy:

In 1947, 14-year-old Willis Lynch of Littleton was asked by a nurse to sing a song as she placed a mask over his face. Lynch unknowingly inhaled an anesthetic, and then underwent a vasectomy procedure without his consent. The forced sterilization was ordered by the state of North Carolina, which had deemed Lynch “feeble-minded” and unfit to produce children.

Lynch, one of seven children of a widowed mother, was sent to a reform school three years earlier because of his propensity to get into fights with classmates. The state of North Carolina quickly targeted Lynch for sterilization and received his mother’s consent only after indicating his return to the family was contingent on her signature, going so far as to threaten to cut off the welfare payments she needed to care for her children.

Contrary to the declaration of the state, Willis Lynch is far from feeble-minded. As an adult, he would go on to serve our nation in the U.S. Army and become a pillar of his community, where he can often be seen and heard at his local Veterans of Foreign Wars hall showcasing his impressive singing and guitar-playing talents.

In the U.S. Senate, Tillis has been joined by Republican colleague Richard Burr, also of North Carolina, and three Democratic Senators, Tom Carper of Delaware and Mark Warner and Tim Kaine, both representing Virginia, to introduce legislation to exclude state compensation payments for eugenics from calculating federal benefits eligibility and payment levels.

To North Carolina’s credit, it has apologized and tried to compensate for its eugenics program. Sadly, the major American charities and foundations with histories of supporting the research for eugenics—or even financing eugenics programs—appear to have avoided taking responsibility for their roles in this movement of scientific racism. While it’s debatable how intentionally or unwittingly they were engaged in supporting eugenics programs of quite heinous dimensions, the histories of these institutions are now quite well known.

The Rockefeller Foundation funded German research institutions in the 1930s, some employing well known and future Nazis such as Ernst Rüdin and Josef Mengele, while the Carnegie Institution, founded by Andrew Carnegie, provided support for eugenicists for decades. The Hudson Institute’s William Schambra adds other foundations to the list of general-purpose foundations that granted philanthropic credibility and capital to the eugenics movement, including the Carnegie Corporation. He has noted in several articles that the foundations that provided support to the eugenics movement, spawning state-sponsored sterilization programs from Virginia to California, have never apologized for their actions, much less provided compensation for their roles.

There is another dimension to eugenics, not simply the forced sterilizations imposed on the poor and minorities, which requires consideration of victims beyond individuals like Willis Lynch and Elnora Mills who were subjected to this treatment. The damage of eugenics may have been much broader, more societal, and oddly, still having its effects today.

In its heyday, some thought of eugenics as a means to stem crime, prostitution, and other social ills by preventing the feebleminded from having children. At the Maryland Reinvestment Summit in Baltimore on Monday, Morgan State University assistant professor Lawrence Brown pointed out that the federal policy of redlining—that is, the drawing of maps by the Federal Housing Administration and its predecessor, the Home Owners Loan Corporation, to identify areas where loans should not be made by coloring them in red—explicitly drew on the pseudo-science of eugenics. Studies of several cities’ redlining policies and color-coded maps, including Asheville, North Carolina’s and Baltimore’s, point to the explicit eugenics-based thinking behind the redlining theories that deemed some neighborhoods, or rather the inhabitants of some neighborhoods, as undesirables.

Journalist Antero Pietila and others, such as Hamline law school’s Mary Szto, provide detailed discussion of the mutually reinforcing impacts of the eugenics movement in the early 20th century and the theories of residential redlining (as well as racially restrictive property covenants) endorsed and implemented by government authorities such as HOLC and the FHA. Governmental support for restrictive covenants and mortgage redlining practices had many links to eugenics. For example, Whet Moser described the overlapping development of real estate finance and eugenics in the real estate economics work of a number of people who influenced Homer Hoyt, who in 1934 became the Federal Housing Administration’s “Principal Housing Economist”:

In 1924, Nathan William MacChesney, chief council of the Chicago-based National Association of Real Estate Boards, enforced residential segregation in the NAREB’s professional code of ethics, which prevented agents from “introducing into a neighborhood…members of any race or nationality…whose presence will be clearly detrimental to property values in that neighborhood.”

MacChesney had “the halo of scientific endorsement,” as Nightingale writes, from Richard T. Ely, the prominent University of Wisconsin (and later Northwestern) economist, founder of the American Economic Association and director of the Institute for Research on Land Economics and Public Utilities. Both men “flirted openly with Social Darwinism and eugenics.” And both turned Chicago into a hub of legal and economic theories bolstering segregation.

MacChesney wrote the infamous “Standard Form, Restrictive Covenant,” which immediately spread throughout the city. One of Ely’s protégés, Frederick Babcock, a property appraiser in his father’s Chicago firm, wrote The Appraisal of Real Estate for Ely’s institute, blending racial theory into the science of home values. A decade later, in 1934, Babcock became the chief appraiser for the new Federal Housing Administration, introducing the ideas in the NAREB circle to federal lending: “The FHA’s underwriting standards, from their earliest incarnations, were premised on the unshakable belief handed down from the work of Fredrick Babcock and Homer Hoyt [a University of Chicago real-estate economist] that racial integration structurally leads to the decline in housing values.”

Hoyt famously introduced to the FHA the methodology of mapping neighborhoods for their investment desirability, with the red shading for those to be avoided because of racial or other characteristics of the inhabitants. Following Hoyt’s theories, Gregory Squires observes that “until the 1960s the FHA insured the financing of many homes in white suburban areas while providing virtually no mortgage insurance in the urban markets where minorities lived.”

It isn’t hard to see from the official redlining maps of cities used by HOLC and the FHA that the patterns of redlining are not different from many of today’s areas where redlining still persists, despite laws prohibiting redlining. Consider these HOLC maps of Baltimore and Birmingham as two examples of redlining neighborhoods and, in a eugenics sense, redlining people deemed to be undesirables:

 

Through its own lending, the FHA has been making all kinds of amends for its history of cutting black home-purchasers out of access to government-insured mortgages. It would be difficult to imagine that the progressive administrators and staff of foundations such as Carnegie, Rockefeller, and others suggest that eugenics as it showed up in American real estate finance has been anything but a crime perpetuated on low-income and minority neighborhoods and their residents. They certainly wouldn’t be likely to believe any of the claptrap of this pernicious form of “scientific racism.”

No one, however, should imagine that the eugenics hasn’t spawned successor ideas that have infiltrated into the public’s consciousness even now. Polls suggest that surprising numbers of whites believe that the explanations behind racial inequity are the personal behaviors and genetic limitations of black people, not structural issues and policies. There are studies that have revived eugenics thinking as applied to immigration reform, that potential immigrants should be selected based on IQ and other more “desirable” characteristics so that they would not be a “burden” on society and on taxpayers, not a big leap from that to the innuendo and more of Donald Trump that Mexican immigrants are infiltrated (a favorite word of eugenicists and redliners) with “criminals, drug dealers, rapists, etc.”

There may be surviving individuals in North Carolina and other states who deserve compensation for the forced sterilization they suffered in state-sponsored eugenics programs. However, the legacy of eugenics in depriving neighborhoods across the country of needed capital for homeownership and neighborhood improvement affected multitudes and sadly continues with the persistence and upswing of redlining today.—Rick Cohen

Update: Will Foundations Pay Attention to Ag Sec Vilsack on Rural Philanthropy?

Earlier this month, Agriculture Secretary Tom Vilsack stunned the audience at the National Rural Assembly with his very personal disappointment that rural philanthropic grantmaking by the nation’s foundations had declined over a period of time when overall foundation grantmaking had increased nationwide.

Usually, the press doesn’t talk much about the public policy connections of philanthropy unless it is the announcement of some sort of hyped public-private partnership, like the foundations that have tied into federal initiatives such as the Social Innovation Fund, Promise Neighborhoods, or the Education Department’s Race to the Top and i3 programs. Vilsack’s statement was quite different, a charge that despite whatever projects might be getting funded here or there, philanthropy was seriously shortchanging rural America.

The Gazette, a Cedar Rapids, Iowa newspaper, published an editorial that took notice of the former Iowa governor’s observations about foundations. Written, sources tell us, by Lynda Waddington, who apparently attended the Rural Assembly, the Gazette’s editorial was as straightforward as Vilsack:

Despite the good works provided by a robust network of community foundations, rural areas in Iowa, as elsewhere, struggle to compete for grants and support from most national philanthropic groups…Despite concentrated efforts to turn private not-for-profits’ attention to investments in rural places, the results of such labors have been disappointing… In fact, there has been a decrease in rural investment—even as philanthropic groups have increased giving, overall…There’s a compelling case to be made, as Vilsack and others have publicly asserted, that answers to some of our biggest collective issues—climate change, clean energy and global food security—will be found not in a city center, but farther afield.

The Gazette editorial quoted the widely respected Charles Fluharty, president and CEO of the Rural Policy Research Institute based in Iowa City, commenting on the USDA study that found the trend of rural grants declining and the per capital value of rural grants at half the level of urban grants. “Even the USDA has said that their figures are extremely conservative,” Fluharty said. “In fact, most people in the foundation community believe the percentage of rural giving is between 1 to 3 percent of the total outlays for all national foundations.”

While Vilsack did not specifically reference the 2011 memorandum of understanding signed by the USDA and the Council on Foundations to spur new philanthropic investment in rural, the Gazette editorial did: “The agreement was part of the third and final national philanthropic conference to specifically target rural America. Despite a great deal of optimism following the agreement, foundations haven’t followed through.”

While the editorial outlines some of the impressive efforts that the state of Iowa has undertaken to generate more philanthropic giving through community foundations and through the disbursement of casino tax revenues, the issue still comes down to the role of national foundations. It concludes, “more must be done to educate national grantmaking organizations that rural areas not only matter, but also can be unique and critical partners in solving today’s most urgent issues…The message local nonprofits need to spread, and national philanthropic groups must hear, is that our rural areas are keepers of opportunities with widespread positive potential. Let’s get to work.”

That takes the discussion back to the national level, and specifically to the foundation trade association, the Council on Foundations, that signed the 2011 memorandum of understanding with Vilsack and the USDA with great self-congratulatory fanfare. Since that time, there has been a turnover of leadership at the Council, from Steve Gunderson, a former Republican member of Congress who had represented a rural area of Wisconsin, to Vikki Spruill, who came to the Council from the Ocean Conservancy and had headed FoundationWorks and the Philanthropic Awareness Initiative, both efforts to improve foundations’ strategic communications and outreach. How might the Council on Foundations respond to the Vilsack critique?

If it were up to us, we would hope to see the following from the Council:

“Yes, Secretary Vilsack, you’re right. Despite several conferences and shiny publications, philanthropy is still selling rural America short. And beyond that, with multiple issues on foundations’ plates, rural philanthropy may well have slipped off the center of the radar screens. But we can do better and we will, because we agree with you about what rural America not only needs, but merits as support and investment from foundations. As a trade association, we cannot tell and direct our less than 2,000 members, much less the tens of thousands of foundations that are not members, about how they must use and prioritize their grantmaking. But we can be much better advocates for—and with—rural America to raise the visibility and importance of rural in the views of foundations that don’t think much of rural, but should. As a learning network, we can pledge to use our members to surface and promote the best ideas they have in providing grants to rural communities for housing, economic development, environmental protection, land conservation, renewable energy, and sustainable food production. We can raise the visibility of these grants as well as initiatives that promote regional rural philanthropy such as Colorado’s Rural Philanthropy Days which have yielded foundations making demonstrably new and larger grant commitments to rural communities. And we can invest in foundation affinity groups—rural foundation task forces or funding collaboratives—that will carry the message of the importance, relevance, and potential national societal impact of rural grantmaking. Yes, Secretary Vilsack, philanthropy’s attention to rural America hasn’t been what it should have been, not to mention what the Council hoped it would be after we signed that memorandum of understanding with the Department of Agriculture in 2011. But we pledge that going forward, the energies and commitment of the Council on Foundation will include making rural grantmaking a high priority and ensuring that it will not again slip off the radar screen of national philanthropy.”

Despite Vilsack’s statement and despite coverage in the Gazette, it doesn’t seem to be the case that the foundation community has taken note and responded.  It should.  Whatever one thinks of the Obama Administration’s rural development policies, there is little question that Tom Vilsack has been a dedicated advocate for rural America.  When he departs as a new administration comes in after 2016, a decent, caring, authentic man will have left the helm of the federal government’s rural development bureaucracy.  He deserves a better response from foundations than studied silence.—Rick Cohen

Another Gates Education Experiment Grinds to an End, Leaving Questionable Results Behind

As any observer of philanthropy knows, not all philanthropic investments in education are wins, and while the philanthropies and foundations can walk away from these sometimes-massive investments with maybe a mea culpa, the districts are often left with the detritus. In 2009, the Bill and Melinda Gates Foundation announced that it was launching the Empowering Effective Teachers initiative. The objectives of the Foundation’s investment were to “to bring district leadership, school board leadership, and teachers’ union leadership to the table to develop a plan to transform teacher effectiveness policies and practices [and] radically reorganize their practices and policies to ensure that every student is taught by an effective teacher.”

Now, as the end of the seven-year time frame for the program approaches, the Tampa Bay Times is looking at how the program has worked in one of the districts that partnered with the Gates Foundation:

A seven-year effort to put better teachers in Hillsborough County schools is costing the system millions of dollars more than officials projected. And the district’s partner in the project, the Bill & Melinda Gates Foundation, is spending $20 million less than expected. The numbers, found in recent reports, differ significantly from what was commonly understood about the high-profile partnership, known as Empowering Effective Teachers. The district was to raise $102 million for its part, much of it by aggressively pursuing grants from local corporations and other entities. Gates was to kick in $100 million, for a total of $202 million. But as the project stands in its final year, the district’s contribution will total $124 million in money and labor, while the Gates organization is paying only $80 million, the reports state. What’s more, the district has put the total cost of the program, so far, at $271 million.

The plan developed for implementation in the Hillsborough district in Florida included many of the features that educational reformers have seen as critical elements for a 21st-century school system: creating a teacher evaluation system that would facilitate the firing of “bad” teachers, replacing a salary structure that is based on longevity with one that ties teacher pay to educational effectiveness, and evaluating teachers in a system that uses standardized test results as a major component.

After seven years of effort, and with the Gates Foundation’s funding reaching an end, Hillsborough’s efforts show how challenging this prescription is to implement:

The original proposal and a 2010 timeline called for the district to fire five percent of its teachers each year for poor performance. That would amount to more than 700 teachers. The thinking was they would be replaced by teachers who earned entry-level wages, freeing up money to pay the bonuses for those at the top. But the mass firings never happened. While an undetermined number of teachers resign out of dissatisfaction or fear that they will be fired, only a handful of terminations happen because of bad evaluations. Also, while the initial proposal sought to pay teachers based on performance instead of seniority, the actual pay plan does both. Teachers receive pay bumps at three-year intervals and, if they score highly in the ratings system, they get bonus pay. Evaluators were supposed to serve two-year stints, then cycle back to the classroom. Instead, many stay three and four years. Critics say they become bureaucrats and not true peers. But [Anna Brown, who manages the Gates grant for the district] said that with more experience, they are better qualified to do the job.

Brown says dismantling the whole scheme now is unrealistic since one of its primary features, performance pay, is state law. But seven years later, there is little evidence that student outcomes are better because of this investment: “Most of what has occurred so far is procedural, putting systems in place to improve teaching and, in turn, future student achievement. Measuring that achievement in a meaningful way has yet to happen.” The district’s graduation rate has not significantly improved and does not compare with other metropolitan districts in Florida.

The story of Hillsborough’s experience looks very similar to The Prize, Dale Russakoff’s look at efforts to improve the schools in Newark, New Jersey. What now remains to be assessed is whether this lack of student progress is a result of not fully implementing the reformers’ game plan as designed…or a demonstration that this plan is seriously flawed.—Martin Levine

Dubious Veterans Charities a Pervasive Problem Nationwide

Florida businessman Neil “Paul” Paulson’s campaign to replace Buddy Dyer as mayor of Orlando, Florida serves as yet another example, available almost daily, of how easy it is to screw around with veterans’ charities.  A former lawyer who gave up his law license while under investigation by the Florida Bar, Paulson also has his own veterans charity, “Help the Vets,” which might as well also be under investigation.  Paulson is an Army vet, according to the Help the Vets website, which uses a 1990 picture of him wearing fatigues.

Help the Vets says it exists to provide services not available through the Department of Veterans Affairs, to veterans with severe physical injuries or amputations.  The website cites one Iraq war veteran who lost both his arms and his legs due to a roadside IED who will receive educational support for the nonprofit later this year for educational services not supported by the VA, and a second veteran, from the Afghanistan conflict, who lost both his legs due to an IED, but will receive support from Help the Vets after his subsidization for home health care services from the VA runs out.  The website also indicates that in 2014, Help the Vets provided free gym memberships to 1,230 vets, distributed $258,000 in allopathic medical care vouchers (not covered by the VA), paid the entry fees for 53 veterans entering the Orlando Marathon, Half Marathon, and 5K races (Paulson is a director of the Orlando Marathon), provided hotline and home therapy services to disabled veterans, and helped raise moneys for other veterans-related charities.

Nonetheless, there are questions about the Help the Vets charity, including its proud announcement of 1.4 percent of its expenses for administrative costs.  In the Sentinel article, Sandra Miniutti of Charity Navigator commented on the charity’s small, four-member board, one of who is Paulson’s son, suggesting something less than arm’s-length board oversight. She also mentioned the charity’s receipt of $770,000 in Mexican vacation vouchers which Paulson said, without revealing names, were distributed to veterans, and Help the Vets’ use of a telemarketer that kept $1.16 million of $1.3 million raised in charitable donations.  Paulson appears to have another charity, the Breast Cancer Outreach Foundation, which uses telemarketers like Help the Vets does.

Like the reaction of national veterans service organizations to the sudden appearance of Michael Arends and the Veterans for a Strong America group, a local Orlando veterans organization, the Camaraderie Foundation, claims to have never heard of Help the Vets until Paulson began his mayoral quest.  Paulson says that the head of Camaraderie supports Dyer’s candidacy, which somehow explains its statement about the invisibility of Paulson’s veterans charity.

GuideStar’s profile of the nonprofit indicates that it is known by several names—Help the Vets, Military Families of America, American Disabled Veterans Foundation, Vets Fighting Breast Cancer, and Veterans Emergency Blood Bank, with the contact listed as “Dr. Neil Paulson.”  The entire story of Help the Vets ought to raise donors’ antennae, but Paulson and Help the Vets aren’t alone as veterans charities of questionable provenance.

Earlier this summer, the Chicago Tribune discussed the telemarketing fundraising of VietNow, a Rockford, Illinois charity that raised $1.4 million in 2014, but only delivered seven percent of the donations in direct service to veterans and their families. A Rock Island, Illinois charity called Illinois Vietnam Veterans delivered only five percent of its $20 million fundraising haul between 2003 and 2013 in direct services.  Our awareness of VietNow stretches back to 2003 when the Illinois attorney general took VietNow and its telemarketing firm all the way to the U.S. Supreme Court on charges that the fundraising fees were excessive to the point of being fraudulent.  Top charity associations such as Independent Sector at the time defended VietNow and its fundraising contractor, even filing a brief on their behalf, as having engaged in protected free speech, even if mere pennies of assistance ever reached veterans.  It should be of little surprise that the VietNow “services” to veterans consisted largely of fruit-baskets for some hospitalized vets and a handful of scholarships to a few kids.

The propensity of too many people to set up charities ostensibly serving veterans—unnecessarily, because there are already legitimate and capable organizations doing so, ineffectively, because so many rely on troubling, hugely expensive telemarketing fundraisers, and often unaccountably, because no one seems to be keeping a close eye on the proliferation of groups—is a problem that leads to groups such as VietNow, Helping the Vets, and Veterans for a Strong America.  America’s military veterans deserve much better than this.—Rick Cohen