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In 2012, we are celebrating the 20-year anniversary of the American Institute of Philanthropy (AIP). With this significant milestone, we're happy to announce we will now be known as CharityWatch—a name that better reflects our role as the independent, assertive charity watchdog you rely on to expose abuses and advocate for your interests as a donor.

The Chronicle of Philanthropy published several of our triumphs in an in-depth profile of CharityWatch & our president Daniel Borochoff: An MBA's Sleuthing Skills Puts Charities on the Hot Seat. The linked article begins in the lower right column of the first page.


Giving Alert!

The Best Way to Support Humanitarian Relief Efforts for Syrians

The extremely violent Syrian conflicts that began in March 2011 have claimed the lives of more than 60,000 people so far. Approximately 4 million Syrians are in need of emergency assistance. As of early 2013, the violence has displaced more than 2 million people within Syria. More than 650,000 Syrians have fled to nearby Turkey, Jordan, and Lebanon. The number of refugees is expected to continue to increase rapidly and overwhelm social service providers in those neighboring countries.

CharityWatch announces its top-rated list of charities involved in efforts to provide emergency humanitarian relief to the people of Syria. Find out how you can help.


Giving Alert!

The Best Way to Support Superstorm Sandy Relief Efforts

Recovery efforts are underway in hard-hit areas of the East Coast of the United States, Haiti, and other parts of the Caribbean. Donors should find out what specific roles a charity has in the relief and recovery efforts before donating. When people hear about the tens of billions of dollars in damages, they need to be aware that much of that will be paid for by government and private insurance. The role of charity is to cover what these larger players don't.

CharityWatch announces its top-rated list of charities involved in efforts to provide relief to victims of Superstorm Sandy, domestically and/or in the Caribbean. Find out how you can help.


Lance Armstrong Scandal & Livestrong

In response to the US Anti-Doping Agency's October 2012 report implicating Lance Armstrong at the center of a doping scandal, CharityWatch President Daniel Borochoff called for Armstrong to step down from his prominent position at Livestrong Foundation, the highly-efficient cancer charity he founded.

A week later, Armstrong announced that he would step down from his role as chairman. Mr. Borochoff spoke to trust issues related to the charity's image being so closely tied to the persona of its founder. Read more.


Help Hospitalized Veterans (HHV), which earns an F rating from CharityWatch, is being sued by California's Attorney General. The lawsuit seeks to recover $4.3 million in allegedly diverted funds and to remove this charity's board of directors. The AG shares CharityWatch's long held position that HHV uses accounting gimmicks to inflate the amount of contributions it reports spent on program services to help veterans.
ABC News coverage
provides some context for the allegations.
CharityWatch has been critical of HHV for years:

Charity Fraudster's Identity Revealed

In April 2012, a fugitive using the alias "Bobby Thompson" was arrested in Oregon & is now jailed in Ohio facing charges of corruption, theft, and money laundering related to a sham charity he used to steal millions of dollars in donations intended to help veterans. On October 1, 2012, the US Marshalls Office revealed the true identity of "Bobby Thompson" to be John Donald Cody. Cody is a former military intelligence officer who has been on the FBI's wanted list since 1987 on charges of fraud and espionage.

For more about how the U.S. Marshalls identified the suspect, read this article. CharityWatch's Phantom Veterans Charity Takes Flight: Leaves Veterans Behind tells how he took advantage of donors' trust and desire to help our nation's veterans using his phony charity, the US Navy Veterans Association.


Charities Receive Attention for Overvaluing Donations
Last year, CharityWatch spotlighted the issue of how and why many charities overvalue their non-cash donations, or gifts-in-kind, in our article The Alice in Wonderland World of Charity Valuation. Now CNN is bringing the issue to a wider audience with their own investigation and this coverage.


Giving Alert!

The Best Way to Support Relief Efforts in West Africa.
The UN estimates that 18 million people in the drought-prone Sahel region of West and Central Africa face food insecurity this year.

Slowly developing crises like droughts don't attract the media attention or contributions that earthquakes and tsunamis can, even when the number of people in need is greater. Find out how you can help!

 

Donor Alert!

The Senate Committee on Veterans' Affairs announced on May 30, 2012 that it is calling on Department of Justice and Treasury to investigate Veterans Support Organization (VSO) for "potential violations of federal law and abuse of tax exempt status."

In a letter to the Federal Trade Commission Chairman, seven Connecticut Congressmen allege that VSO employed paid solicitors to pose as volunteers next to shopping centers. VSO only spent $379,000 in grants to veterans and organizations in fiscal 2010.

VSO earns an F rating from CharityWatch. The group claims to have no fundraising costs on its audit and tax form for fiscal 2010, yet raised over $5.6 million in contributions. Despite what VSO reported on its financial documents, CharityWatch believes that it incurred nearly $4 million in fundraising costs that were reported as "On-the-job training programs" on its tax form. VSO's "program" does not help unemployed veterans obtain useful skills, such as computer programming, carpentry or nursing, to help them to obtain gainful employment. But the "program" does help VSO raise money for itself by turning veterans into street solicitors, who are instructed to keep 30% of what they raise. CharityWatch believes that the cost of hiring fundraisers should be reported as a fundraising expense regardless of who is doing the fundraising.

In Bucket-drop Donations Don't Always Reach Veterans, Florida Today highlights the VSO's questionable cash solicitation practices.

 

Are your donations really going to help veterans?

CharityWatch is keeping CNN's investigative reporters informed about veterans charities which spend millions to enrich fundraisers, and not much to help veterans. Check out this video and article to learn about similarities between two F rated groups, the National Veterans Foundation and the Disabled Veterans National Foundation.

A CNN investigation inspired by CharityWatch article Millions in Future Donations to Vets Charity Will Pay Debt Owed to Vendors reveals further details showing that only a small portion of donations raised by Disabled Veterans National Foundation (DVNF) goes to assist injured veterans. Thanks to CNN's continued reporting on F rated DVNF, two US Senators have now launched "an investigation into the potential abuses of tax-exempt nonprofit status" by DVNF and are looking into "questionable financial ties between DVNF and Quadriga Art."
Check out the following links to CNN's reporting on DVNF and Quadriga:
CharityWatch president, Daniel Borochoff, comments about the waste at this and other veterans charities. This follow-up video features veterans charities that have received useless in-kind donations from DVNF, and the group's president refusing to explain why DVNF provides so little aid to veterans. DVNF's responses to CNN take a "bizarre and nonsensical" twist and J.D. Simpson, who operates a shelter serving homeless veterans, says that DVNF diverts much-needed funds away from groups helping veterans in need.

Here is a list of the Veterans Charities which earn Top-Rated status from CharityWatch for spending most of their budgets on charitable programs.

**Update: Haiti Cholera Epidemic Expected to Worsen **

Help provide relief to Haiti's earthquake & cholera victims.
A magnitude 7.0 earthquake shook Haiti in January 2010. The quake collapsed buildings in capital Port-au-Prince, caused more than two hundred thousand deaths, thousands of injuries, and left more than a million people homeless. Since October 2010, a deadly cholera epidemic has swept the vulnerable Haitian population. Heavy rains in the spring and tropical storms in the summer are expected to trigger spikes in cholera cases and related deaths. Find out how you can help.


What is the Breast Cancer Society really doing to help cancer patients?

CharityWatch informs investigative reporters on the Breast Cancer Society's skimpy program spending. Watch the video below or read this article to find out how the group uses in-kind donations to appear efficient without spending much on charitable programs.


"Not So" Great Nonprofits and Think! Before You JustGive
In these new articles, CharityWatch sizes up two popular charity review websites. Find out what to be wary of when choosing sources for charity information.

** Update: Greg Mortenson, Central Asia Institute **

April 2012 Montana Attorney General announces a settlement agreement requiring Greg Mortenson, author of Three Cups of Tea, to pay more than $1 million in restitution for financial wrongdoing at the charity he founded, Central Asia Institute. The very same three person board, which includes Greg Mortenson and is responsible for the mismanagement of CAI, is empowered with selecting its replacement board, according to the settlement reached with the Montana Attorney General. Read the CharityWatch article that sparked the investigation, and listen to Daniel Borochoff discuss the settlement agreement on NPR. For Borochoff's comments on how the nonprofit sector could be affected by shortcomings in the AG's settlement, read this AP article.

60 Minutes investigates Greg Mortenson CharityWatch article Nobel Prize Nominee's Charity Wins No Awards for Accountability, inspires 60 Minutes investigative piece on Greg Mortenson, author of Three Cups of Tea, and his charity, Central Asia Institute. Click here to watch the 60 Minutes segment.

In a follow-up interview on MSNBC, CharityWatch President Daniel Borochoff details some of the accountability issues at Central Asia Institute.

With PBS Newshour, Daniel Borochoff discusses important questions that Mortenson and CAI have still not answered.

Byliner, the publisher of Jon Krakauer's 75 page article Three Cups of Deceit: How Greg Mortenson, Humanitarian Hero, Lost His Way, has made the article available at amazon.com.

Want to help children in Afghanistan and Pakistan?
CharityWatch list of Top-Rated charities operating in the region.


** CharityWatch responds to questions about the charity behind Kony2012 **

In the short video below, CharityWatch President Daniel Borochoff discusses what the public might not realize about the finances of Invisible Children—the charity behind the Kony2012 viral video.

 

For CharityWatch commentary on the effects of recent controversy at Susan G. Komen for the Cure, read these two articles from The New York Times:



See the Top 25 Compensation Packages of charity officers, directors, trustees, and key employees.
For details about one charity executive's unusual compensation package, read Eye-Popping Pay.

CharityWatch raises concerns about the American Cancer Society. Watch the video below (with Flash Player) or read American Cancer Society: Where does your money go?


CharityWatch Calls for Charities to Disclose International Grantees

CharityWatch is calling for the IRS to start requiring charities to shine light on their international grants. Under current reporting rules nonprofits are allowed to conceal the organizational names of their international grantees on their mandatory public disclosure report, the IRS form 990. This omission is making it too easy for charities to exaggerate their work and mislead the American public. As a world humanitarian leader, it is essential that the United States require its nonprofit international aid organizations to be transparent and accountable. Read our plea to the IRS.

CharityWatch is also calling for the IRS to close a loophole that allows charity executives to hide some of their compensation. For more on that, read CharityWatch Calls for Full Disclosure of Charity Executive Compensation.


Starving in South Africa The Best Way to Support Relief Efforts in East Africa. Countries in the Horn of Africa are still in need of help following the recent severe drought in the region and famine in Somalia. Countries in the region also affected by a food crisis include Djibouti, South Sudan, Sudan, and Uganda.
Find out how you can help!

 


8.9 Magnitude Earthquake in Japan and Resulting Tsunami
CharityWatch announces its Top-Rated list of charities offering services to the victims of the March 2011 earthquake and tsunami.
Find out how you can help
.


Laurie Styron, CharityWatch AnalystWatch CharityWatch analyst Laurie Styron's interview for The Shoshin Project in which she discusses how CharityWatch analyzes charities, what red flags to avoid, and questions to ask when deciding which charities are worthy of your donations.

 

Flood victims in PakistanFlooding in Pakistan
Two months of heavy rain and severe flooding in Pakistan has devastated the population, with a death toll surpassing 1,800 and more than twelve million people in need of immediate assistance. Find out how you can help.


Indonesia Relief
CharityWatch announces its Top-Rated list of charities currently offering services to the victims of the recent earthquake and tsunami, and volcanic eruptions that struck in Indonesia. Find out how you can help.

Daniel Borochoff on NPR NPR's Talk of the Nation featured CharityWatch President Daniel Borochoff discussing challenges in getting aid to victims of Pakistan's flood. Click this link to listen.
Mr. Borochoff was also interviewed on the radio program The World for a segment on Haiti versus Pakistan Aid Response, highlighting the enormous scale of the Pakistan disaster, and the lack of sufficient aid money to the region.


Laurie Styron, AIP AnalystIn this interview CharityWatch Analyst Laurie Styron explains that Defeat Diabetes Foundation receives an F rating for spending more on fundraising than on charitable programs. Watch Here.


CharityWatch Analyst Laurie Styron reveals the high fundraising costs of F rated group American Association of State Troopers. Watch Here.


Laurie Styron, AIP AnalystCharityWatch Analyst Laurie Styron speaks to Fox Tampa Bay's investigative news team about unusual fundraising expenditures at F rated Kids Wish Network. Watch Here.


F rated Children's Charity FundIn this video clip, CharityWatch Analyst Laurie Styron informs Fox Tampa Bay that the CharityWatch F rated group, Children's Charity Fund, also known as A Child's Wish Foundation, has not kept its promise to become a more efficient charity. Watch Here.


Daniel Borochoff, AIP PresidentOn CNBC, CharityWatch President Daniel Borochoff debunks the idea that pledges by billionaires, such as Gates and Buffett, to give half of their wealth to charity would somehow hurt the economy. Watch Here.

 

Gulf Oil Spill Disaster
The Deepwater Horizon oil rig explosion of April 20, 2010 has resulted in the largest oil spill in U.S. history. Millions of gallons of oil have polluted the Gulf of Mexico. Coastal ecosystems and the fish, birds and people that depend on these formerly pristine areas for their livelihoods have been seriously harmed. What to consider before donating to help.


Daniel Borochoff, CharityWatch president, informed a national news investigation revealing Feed the Children's false claims related to Haiti relief. For more information on recent and past controversies involving Feed the Children, read these articles.


Help victims of Hurricane Katrina Hurricane Relief Five years after Hurricanes Katrina and Rita devastated Gulf coast communities, Daniel Borochoff marked the anniversary by calling attention to top-rated charities still serving victims of those disasters.

See CharityWatch President Daniel Borochoff's testimony before Congress about charities' response to Hurricane Katrina. His testimony begins one hour and forty-eight minutes into the two and a half hour video. Or read the written transcript of Mr. Borochoff's testimony.

 

Help provide relief to victims of Chile's earthquake.
The 8.8 magnitude Chilean quake on February 27th has left hundreds dead, and more than a million displaced. Find out how you can help.

 

Listen to a Radio BroadcastNPR's Talk of the Nation featured CharityWatch President Daniel Borochoff discussing Reliable Ways to Donate Money to Haiti Effort. Click on the link to listen, or read a transcript of the conversation.
On the African-American Public Radio Consortium's UpFront with Tony Cox, Mr. Borochoff offers guidance for donating to Charities for Haiti Relief. To listen, follow the link and click on the first item in the radio player on the left side of the page.

 

Listen to a Radio Broadcast Listen to two radio interviews featuring CharityWatch President Daniel Borochoff. As a guest on NPR's Tell Me More, Mr. Borochoff discusses Making The Most Of Charitable Dollars. On the BBC's Business Daily Charities Under Pressure Mr. Borochoff offers insight as to how the economic downturn is impacting the work of charities.


CharityWatch President Daniel Borochoff discusses on national TV the charity fallout from the Madoff Ponzi scheme and precautions donors can take when considering donating to charities that may be holding highly risky and even fraudulent investments. Watch Here.

 


Help Your Fellow Americans During This Time of Economic Crisis
As the unemployment rate and home foreclosures remain high, more Americans are suffering from homelessness, hunger, drug and alcohol abuse, and other issues. During this time of heightened need, it is more important than ever to lend a hand to your neighbors. Find out how you can help.


Help Provide Relief for the People of the Democratic Republic of Congo
Renewed fighting in the Democratic Republic of Congo (DRC) has left over 1 million people displaced. With militiamen burning down some of the temporary housing, many are going without food and shelter as they attempt to avoid the worst areas of conflict. As the crisis worsens, humanitarian organizations are stepping in to provide assistance to the victims of this catastrophe. See the CharityWatch list of Top-Rated organizations providing relief in the DRC to find out how you can help.


Help with humanitarian crises in Darfur Help with Sudan Refugee Relief. The growing international attention to the crisis in Darfur has failed to alleviate the large-scale violence. The janjaweed militias continue to terrorize civilians and underfunded African Union troops have been unable to maintain peace. Up to 3 million people have been displaced since the fighting began in 2003.


F Rated Charities Awarded Best in America Seal
Ubiquitous on charity web sites is a ribbon-style seal that in large type reads "BEST IN AMERICA," features five stars across the top edge, and indicates that the charity awarded the seal is "certified by Independent Charities of America" (ICA). Many donors may view such a seal as a reflection of how efficiently a particular charity will use their donations, and assume that it represents an independent endorsement of a charity from an outside organization. While ICA may refer to its member charities as "Best in America," some donors may be disappointed to learn that ICA is funded by the very charities that use its seal, and that ICA generally does not screen charities for financial efficiency. Read more...


Help Provide Relief for the People of Afghanistan
Thirty years of war have left Afghanistan one of the least developed and most dangerous countries in the world, and yet a recent study shows that some 40 percent of reconstruction and relief assistance provided since 2001 has been returned to donor countries in the form of corporate profits and consultant salaries. See the CharityWatch list of Top-Rated charities providing relief in Afghanistan to find out how you can help.


CharityWatch Efforts to Hold Veterans Charities Accountable Featured on National Network TV

 


Watch TV Coverage of CharityWatch's F Rating of the Military Order of the Purple Heart Service Foundation or read the story here.


Listen to a Radio Broadcast Listen to CharityWatch President Daniel Borochoff Discuss Veterans Charities on Internet Radio
(click on link, then scroll down to "Knowing Where Your Charity Money Goes").


Help with humanitarian crises in Iraq Iraq Crisis The best way to help in the war's aftermath.

Listen to a Radio Broadcast Listen to the NPR segment about the usefulness of the Charity Rating Guide and Watchdog Report.

Listen to a Radio Broadcast Why the American Red Cross is not telling the full story when it says its Disaster Relief Fund is depleted. Listen to CharityWatch president discuss this issue on NPR. (Requires Real Player or Windows Media Player.)

Watch CharityWatch president’s speech on how to watchdog charities at Society of Professional Journalists’ 2005 National Conference. (Requires Quick Time .)

AIP's Method Better Judges Charity EfficiencyNot all charity watchdogs are the same: Read more about how CharityWatch Method Better Judges Charity Efficiency: Why Oxfam Compares Better and UNICEF Worse.

Listen to a Radio Broadcast Listen to CharityWatch president discuss giving to poor and needy Americans, who have become more visible in the aftermath of Hurricane Katrina. You will need to slide the knob for the time to about 23:45 to hear the interview. (Requires Real Player or Windows Media Player.) Interview by Maureen Fiedler of Interfaith Voices.

Listen to a Radio Broadcast
Listen to CharityWatch president discuss on NPR how to make sure your donation really reaches tsunami victims. (Requires Real Player or Windows Media Player.)

Listen to a Radio Broadcast
Listen to the NPR broadcast of CharityWatch president discussing The Good and the Bad of Giving on NPR. (Requires Real Player or Windows Media Player.)

Help with humanitarian crises in Uganda
Neglected Humanitarian Crisis in Uganda Refugees in Northern Uganda are dying at an alarming rate: the best way to help.

Supreme Court rules in case against telemarketer of CharityWatch “F” rated charity.
Supreme Court rules unanimously that state regulators can charge fundraisers with fraud if they intentionally deceive donors.
See upcoming Charity Rating Guide for latest developments.

CharityWatch president's congressional testimony on the charities’ response to the 9/11 terrorist attack.

Listen to a Radio Broadcast Should we hand out cash to people on the street? Listen to some pros and cons on NPR segment with “Mr. Dollars” and AIP’s president. (Requires Real Player or Windows Media Player.)

Listen to a Radio Broadcast
Listen to the NPR broadcast with CharityWatch president Daniel Borochoff discussing how to avoid the pitfalls and traps in your giving.
(Requires Real Player or Windows Media Player.)


Listen to a Radio Broadcast Listen to comments from CharityWatch during an NPR radio discussion concerning emergency relief and charity.
(Requires Real Player or Windows Media Player.)

 

This informative hour-long video, filmed in November 2001, is an in-depth discussion regarding charity accountability in the wake of 9/11 terrorist attacks. These tips are relevant for donors wanting to give in response to any disaster.


Listen to a Radio Broadcast Listen to comments from CharityWatch during an NPR radio discussion concerning charities’ response to the 9/11 terrorist attack. (Requires Real Player or Windows Media Player.)


Listen to a Radio Broadcast Listen to the NPR broadcast about how CharityWatch's scrutiny and aggressive advocacy for the donating public is making some charities very uncomfortable.
(Requires Real Player or Windows Media Player.)
 
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