As the backpack project grew, Mr. Melia hired a few employees, including Mr. Nardizzi, a lawyer who had never served in the military but was an executive for a small nonprofit, the United Spinal Association, which served disabled veterans. 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. 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. The organization fired Mr. Chick later the same day for insubordination. Graphite 80/20 Poly/Cotton Left Chest/Sleeve Design Screenprint Wounded Warrior Project has earned a 86% for the Accountability & Finance beacon. Linnington said the organization is also making a point to be part of conversations involving the "Big Six" -- the congressionally chartered veterans service organizations including American Legion and VFW -- and to be present for regular convenings with the Defense Department and the Department of Veterans Affairs. Mr. Longoria said he was offered money in exchange for signing a nondisclosure agreement, but refused. They began raising millions of dollars and broadening their services to include adaptive sports for disabled veterans, employment and benefits help, and retreats to teach veterans to cope with post-traumatic stress disorder. It also began to focus on programs like group bike rides and concert-ticket handouts that left many staff members wondering about how much they were helping veterans. 5. Who does Wounded Warrior Project serve? Why do the misdeeds of one nonprofit cause mistrust of all nonprofits? 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. SVA leaders joined WWP at the White House in April for the latter organization's 12th annual warrior ride. First: donations to Wounded Warriors fell by $70 million from 2015 to 2016. 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. 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.. In 2014, the Wounded Warrior Project lobbied in California and Florida to fight proposals that would have required nonprofits to increase financial transparency. "[Now], I would tell you to look at the organization, the changes they've made and make an educated decision. He started by handing out backpacks of comfort items to wounded troops. But like other former employees, he said the group swiftly fired anyone leaders considered a bad cultural fit.. The Wounded Warrior Project, WWP, is a not-for-profit charity that aims to assist wounded veterans with their needs. It did not dispute findings reported by The Times, including that the organization had fired a number of wounded veterans with little cause. Powered and implemented by FactSet Digital Solutions. Plenzler said spending on that program so far has totaled $100 million, with another $165 million committed over the next five years. A three-judge panel has denied an appeal and upheld the original verdict in a battle between two charities that support returning American veterans and were using similar names. Mr. Giordano tried to refute the news media accounts, Mr. Kane said, and explained that the executives silence had been recommended by a public relations firm as a way to defuse criticism. Connie Chapman, who was the director of the Wounded Warrior Project office in Seattle for two years, at a friends home in Eatonville, Wash. People could spend money on the most ridiculous thing and no one batted an eye, she said. January 27, 2016 / 8:32 PM / CBS News. With time and support from donors, new meta-charities will arise to evaluate other areas of nonprofit activity. Quotes displayed in real-time or delayed by at least 15 minutes. Its founder, John Melia, was a Marine veteran who had been injured in a helicopter crash off the coast of Somalia in 1992. All rights reserved. He changes his habits and routine around Jacksonville, Florida, he said, to avoid running into former organization co-workers. Many Americans gave their trust and. Under the Charity Watch rating system, Wounded Warrior Project has a modest C+, up from a C in 2015, said Daniel Borochoff, the accountability organization's president. But investigations revealed that the organization spent millions of donor dollars on first-class airfare, employee retreats and extravagant salaries. 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. Right now we are in a position where we can still meet our obligations, he said. 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. It wasn't just about lavish all-hands gatherings, although those quickly became a thing of the past. Today, The New York Times released a damning report on the renowned . At the end of 2015, there were 96,695 individuals in WWP's database; by the end of 2018, there were 155,302, with growth staying fairly consistent year-over-year. "I have zero regrets, and I would do it again," he said. Like Charity Navigator, Charity Watch is critical of WWP's fundraising efficiency, which it considers to be on the low end of acceptable. It slowly had less focus on veterans and more on raising money and protecting the organization, he said. After Public Crisis and Fall from Grace, Wounded . Today, on a list of 27 founders that was created by the charitys current leadership and handed out to all new employees, Mr. Melias name appears well below the name of the charitys for-profit fund-raising consultant. Mr. Nardizzi said in an interview that Mr. Melia left to pursue business ventures. When was Wounded Warrior Project (WWP) founded? 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. He didnt want to leave, but it was obvious something was going to happen, Ms. Melia said. Millette also marvels at the way the organization has overhauled itself and rebuilt, even as many predicted that it would crumble under the pressure. Mr. Nardizzi said his staff was constantly monitoring metrics to try to get the most out of every dollar donated. They gave me a Xeroxed map of the hospital grounds and it was not very well photocopied, he explains on the video. Linnington also said the organization supports the Elizabeth Dole Foundation in caregiver work, Veterans of Foreign Wars in assisting veterans with VA disability claims, and the National Military Family Association in caring for veterans' families, among many others. Its television commercials with scenes of men, women and their families coping with deep emotional pain pull at the heart and purse strings. Money poured in. There are fresh concerns that public support for ongoing military assistance may be waning. With millions of good Samaritans regularly donating a portion of their paycheck to good causes, charities are booming unfortunately, not all of the money going into them is coming out the way we think. That year, he doubled the spending on fund-raising and started running television ads imploring viewers to send in donations. But Mr. Melias ex-wife, Julie Melia, who worked at the charity at the time, said in an interview that her former husband felt like the organization was stolen from him.. 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. He's come in on a Segway, he's come in on a horse, one employee told CBS News. You've successfully subscribed to this newsletter! Steve Nardizzi, the chief executive of the Wounded Warrior Project, speaking at the 2010 Soldier Ride at Macys in Herald Square, Manhattan. Its a fund-raising machine that is a grant-maker for a number of other veterans organizations, said Phillip Carter, a fellow at the Center for a New American Security, which also gets funding from the organization. The organization began producing inspirational ads featuring wounded veterans fighting to recover. You have reached your limit of 4 free articles. Then, in late January 2016, a pair of damning high-profile news reports hit like a one-two punch, throwing the organization into turmoil. Among those who say WWP has regained their trust is Erick Millette, a medically retired Army staff sergeant who worked for the organization as a full-time public speaker and representative in the organization's "Warriors Speak" program from 2013 to 2015. While the most obvious shortcomings were the physical conditions of the hospital housing for the soldiers peeling paint, crumbling walls, mold and rats the more damning problem was an understaffed medical system overseen by a dysfunctional bureaucracy. As commanding general of the Military District of Washington and commander of Joint Force Headquarters-National Capital Region, a position he held from 2011 to 2013, he said he welcomed many arriving C-17 Globemasters transporting wounded veterans back to the United States from Landstuhl Regional Medical Center in Germany. The organization will still take action in cases of suspected fraud, he said. "They were using the smallest percentage of wounded veterans to suck money out of hard-working Americans," he said. The annual surveys of the wounded warriors the organization serves help direct its focus, Linnington says. You had the same few guys who loved going to free events.. But as donations poured in, many former employees say the group became wasteful. Anyone can read what you share. As a subscriber, you have 10 gift articles to give each month. Still, if the Wounded Warrior Project were to collapse, it could have wide-ranging effects because it gives millions in grants to smaller veterans groups, like Team Rubicon and Team Red White and Blue. 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. Eighteen former employees many of them wounded veterans themselves said they had been fired for seemingly minor missteps or perceived insubordination. You do not reflect the sentiments of the more than 80,000 wounded soldiers we have helped, focusing instead on a few malcontents. Whats their motivation for telling us? "Four years ago, I would have told you to keep your money in your pocket and take it somewhere else," he said. Can we corroborate the information? The saddest part is that it endeavors to hurt an organization that does so much to help our wounded soldiers. You do not reflect the sentiments of the more than 80,000 wounded soldiers we have helped, focusing instead on a few malcontents. WWP Performance Tee - Graphite. Wounded Warrior Project execs ousted over spending scandal March 11, 2016 | 3:18am Two top execs at the Wounded Warrior Project one of the largest war veterans support organizations in. 6. Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. William Chick, a former supervisor, spent five years with the Wounded Warrior Project. In early 2016, New York Times Reporter Dave Philipps was working on a story about the Wounded Warrior Project which seemed like it would initially be a public interest piece discussing the work of this popular charity. It got under my skin, started eating at me, he said. Mr. Chick said he refused, but was ordered by his boss to write an email recommending the firing. Under Mr. Nardizzis direction, it has modeled itself on for-profit corporations, with a focus on data, scalable products, quarterly numbers and branding. But executives quadrupled the number of job placements the program was expected to make each year, reducing the amount of time specialists had to find good ones, said Dan Lessard, who ran the program for about two years. The reporter and at least one editor know the identity of the source. IN JANUARY, when I wrote about a publisher's creative team-up involving Wounded Warrior . It estimates that 80,000 veterans have used its services. What happened next is something out of Billy Lynns Long Halftime Walk, by Ben Fountain, the Catch-22 of the Iraq and Afghanistan wars. - Fox News wounded-warrior-projects-top-execs. He was medevaced out of Iraq, but only nine days after his near-fatal injury, the Walter Reed staff discharged him into outpatient status. 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. This beacon provides an assessment of a charity's financial health (financial efficiency, sustainability, and trustworthiness) and its commitment to governance practices and policies. By the time I left, we were just throwing guys in jobs to check off a box and hit the numbers.. But Linnington maintains it's not just about the bottom line for him. The videos are typically 10 to 12 minutes long. When wounded troops began returning from Iraq in 2003, Mr. Melia remembered how he had arrived in a stateside hospital with only his thin hospital gown, and began visiting military hospitals to distribute backpacks stuffed with socks, CD players, toothpaste and other items. Perpetuating the myth that the worth of a nonprofit organization boils down to what it spends on overhead is simply indefensible. A week after the top executives of the Wounded Warrior Project were fired amid accusations of lavish spending, an influential senator on a committee that oversees nonprofit organizations is. Seeing them do that restores my faith in the organization.". 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. Kane said he has cut charitable ties with the Wounded Warrior Project, embarking on a new charge to effect change at the organization. As a subscriber, you have 10 gift articles to give each month. Report Calls Out Wounded Warrior Project for Excessive, 'Lavish' Spending. With health issues due to toxic exposure becoming an increasing concern for veterans, WWP has invested some $620,000 since fiscal 2017 toward research, partnering with Vietnam Veterans of America (VVA) and the Tragedy Assistance Program for Survivors, or TAPS, to study disease linkages, build awareness and create a "tiger team" of organizations to develop ways to help affected veterans and their families. Already, more than $6.9 million in grants has been awarded for this fiscal year. The councils mission includes defending charity spending on overhead and executive salaries, its website says. Trace Adkins talks about his support of U.S. veterans through the Wounded Warrior Project in Rolling Stone's third Salute to . Michael Loccisano/Getty Images He was impressed, he said, that so many of those nighttime arrival flights would be greeted by WWP staff members, and that he'd also see WWP teammates visiting veterans at Walter Reed National Military Medical Center. Mr. Chicks own supervisor told him to fire Mr. Longoria. The Wounded Warrior Project (WWP) has been helping injured veterans since its inception in 2003, 2 years after the deadly terror attacks that rocked the nation on 9-11. The organization initially denied the accusations and demanded retractions, but then went silent. Over the past few years, WWP staff members have treated themselves to nights at five-star hotels, booked first class cross-country flights to attend minor meetings in-person, attended lavish conferences, and spent nearly 40 percent of their donations . See the metrics below for more information. The Annual Warrior Survey from Wounded Warrior Project (WWP) shows post-9/11 wounded warriors face increasing financial hardship. Mutual Fund and ETF data provided by Refinitiv Lipper. As a subscriber, you have 10 gift articles to give each month. "Their mission is to honor and empower wounded warriors, but what the public doesn't see is how they spend their money," he said. "When the negative media event hit in January-February-March of 2016, public support dropped 50%," he said. 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. Im right here. Donations to Wounded Warrior Project Slow After Spending Scandal. 2. Mr. Longoria said after he was fired, he fell into depression but was also relieved. The ousted Chief Executive Officer and Chief Operating Officer of the Wounded Warrior Project are finding relief in a new independent report on the allegations against the military charity . Once a child came by the office to donate a piggy bank. Another time a woman called to donate part of her sons life insurance after he was killed in Afghanistan, he said. Millette said he witnessed lavish spending on staff, with big catered parties. Market data provided by Factset. 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. The percentage of respondents who stated that WWP was effective at collaborating with other military and veteran nonprofits jumped from 63% to 85% from 2017 to 2018. Once the allegations were brought to our attention, we moved quickly, said the chairman of the board, Anthony Odierno, a retired Army captain who was wounded in Iraq and was helped by the Wounded Warrior Project during its early years.