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Disabled Veterans National Foundation

CharityWatch report issued
November 2021

F
CharityWatch Grade
Our independent grade based
on a number of factors.
 
4%
Program Percentage
Amount spent on programs
relative to overhead.
 
$90
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

Disabled Veterans National Foundation
4601 Forbes Blvd
Suite 130
Lanham, MD 20706

Other Names

DVNF

Tax Status

501(c)3

Website

www.dvnf.org

Stated Mission

To change the lives of men and women who came home wounded or sick after defending our safety and our freedom.

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Data based on Fiscal Year Ended 12/31/2019

Program Percentage: 4%

The percentage of Disabled Veterans National Foundation's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$26,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $90

How many dollars Disabled Veterans National Foundation spends on fundraising to raise each $100 of contributions.

$26,000,000

Calculated Total Contributions

(rounded)

Joint Costs

Disabled Veterans National Foundation's rating was adjusted for Joint Costs. If you are a donor who considers direct mail, telemarketing, and other Joint Cost solicitations to be true charitable programs, the below efficiency ratios, which were not adjusted for joint costs, may better reflect your goals.

Program % Cost to Raise $100
20% $74
Accounting rules allow charities to report some telemarketing, direct mail, and other solicitation costs as Program expenses. CharityWatch believes that most donors do not consider a charity's solicitation activities to be the Programs they are intending to support with their donations. We therefore adjust such expenses out of a charity's reported Program expense and add it to Fundraising expense prior to calculating its rating.

Government Funding

0% to 24%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
Disabled Veterans National Foundation IRS Form 990 26-1446183
Disabled Veterans National Foundation Audited Financial Statements 26-1446183
Entity: Disabled Veterans National Foundation
Document Type: IRS Form 990
Tax ID: 26-1446183
Entity: Disabled Veterans National Foundation
Document Type: Audited Financial Statements
Tax ID: 26-1446183

Governance & Transparency

CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
Disabled Veterans National Foundation
meets governance benchmarks.
 
Disabled Veterans National Foundation
meets transparency benchmarks.
Transparency
Provides Financial Information
Audit Accessibility
Governance: Policies
Reports regularly & consistently monitoring & enforcing compliance with a written Conflict of Interest Policy
Reports required, annual disclosure by officers, directors, and key staff of interests that could give rise to conflicts
Reports having a written Whistleblower Policy
Reports having a written Document Retention and Destruction Policy
Governance: Financials
Reports providing copy of tax form to all board members prior to filing it with IRS
Reports that financial statements were audited by an independent accountant
Governance: Board of Directors
Reports at least 5 voting board members
51% or more of voting board members reported as independent
Reports documenting minutes of board and board committee meetings
Privacy Policy
Privacy Policy Opt-Out Policy  

  Name Title Compensation
1 Joseph Vanfonda CEO $125,000
1
Name: Joseph Vanfonda
Title: CEO
Compensation: $125,000

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

According to the Independent Auditor's Report, dated October 26, 2020, issued in connection with the Disabled Veterans National Foundation (DVNF) audit of December 31, 2019 re: "Substantial Doubt about the Organization's Ability to Continue as a Going Concern":

"The accompanying financial statements have been prepared assuming that the Foundation will continue as a going concern. As discussed in Note 11 [cited below] to the financial statements, the Foundation has suffered recurring losses from operations and has a net deficiency in net assets. Management's evaluation of the events and conditions and management's plans to mitigate these matters are also described in Note 11. Our opinion is not modified with respect to this matter."


According to the Disabled Veterans National Foundation (DVNF) audit of December 31, 2019 (Note 10, Net Assets (Deficit) Without Donor Restrictions):

"Net assets (deficit) without donor restrictions consist of revenue received without donor-imposed restrictions net of expenses. These net assets are available for the operation of the Foundation and include both internally-designated and undesignated resources. The net assets (deficit) without donor restrictions were $(6,682,656) and $(6,749,582) at December 31, 2019 and 2018, respectively."


Also according to the DVNF 2019 audit (Audit Note 11, Going Concern Matters):

"... [T]he Foundation had a net increase in net assets of $66,925 and $196,725 during fiscal years ended December 31, 2019 and 2018, respectively. The Foundation's total liabilities continues to exceed its total assets for the years ended December 31, 2019 and 2018 by $6,681,656 and $6,748,582, respectively.

"The Foundation's vendor accounts payable to its direct mail vendors decreased by $553,533 and $375,675 for the years ending December 31, 2019 and 2018, respectively. The Foundation's direct mail campaign costs is the major contributing factor to its net asset (deficit) without donor restrictions.

"The following describes management's plans and updates to alleviate substantial doubt about the Foundation's ability to continue as a going concern for the years ended December 31, 2019 and 2018, respectively.

"Management created a three-year Deficit Reduction Plan for the year ended December 31, 2017 which includes working with its vendors by reducing its production costs by $3.2 million annually and in addition; by receiving $1.3 million in cost concessions over the next two years of less data segmentation expenses, as well as restructuring of its model to reflect its three-year deficit reduction plan.

"The deficit reduction plan includes decreasing its operational cost footprint without any program impact, reduction of cost in production services and reduction in digital expenditures. In 2018, the Foundation established additional revenue streams outside of direct mail with the utilization of online giving and attracting corporate, private and planned giving donors and reduced its overall operational costs by $3.8 million."

According to the Disabled Veterans National Foundation (DVNF) audit of December 31, 2019 (Note 4, Concentration of Credit Risk):

"The Foundation uses Direct Mail Processors, Inc. to provide donation processing, data entry, and other related services; Innovairre Communications for its direct donor mail marketing; and Vera Data for its donor database management.

"The total payable to vendors for the years ended December 31, 2019 and 2018 was $9,132,158 and $9,685,692, respectively. While there has been no indication that this production vendor will stop providing credit, limit or reduce the credit facility provided to the Foundation, any reduction in credit could have a material impact on the financial condition of the Foundation."


According to the DVNF 2019 tax filing, DVNF reports compensating four vendors an aggregate total of approximately $25.5 million during 2019 in the following amounts (IRS Form 990, Part VII, Section B, Independent Contractors):

(1) Innovairre:  $24,703,112 for "Direct Mail Prod[uction]"
(2) VeraData:  $321,345 for "Data and Marketing"
(3) Restore Global:  $112,222 for "Shipment of Goods"
(4) Direct Mail Processors:  $330,486 for "Caging"

According to the Disabled Veterans National Foundation (DVNF) audited Statement of Activities and Changes in Net Assets (Deficit) for the year ended December 31, 2019, DVNF reports receiving in-kind contributions on which it placed a total value of $1,276,460.

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]

According to the Disabled Veterans National Foundation (DVNF) audit of December 31, 2019 (Note 16, Subsequent Events):

"In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) originated in Wuhan, China... On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. In addition, as of March 30, 2020, Governor Larry Hogan ordered the closure of the physical location of every 'non-life sustaining' ('non-essential') business for what may be an extended period of time. The Foundation had to close its physical locations and employees were to work remotely, if possible. Future potential impacts may include an impairment of the Foundation's ability to obtain contributions and volunteers and continued disruptions or restrictions on employees' ability to work. The future effects of these issues are unknown.

"In April 2020, the Foundation applied for and received a $169,600 loan under the Paycheck Protection Program created as part of the relief efforts related to COVID-19 and administered by the Small Business Administration. The loan was received and accrues interest at one percent, but payments are not required to begin for six months after the funding of the loan. The Foundation is eligible for loan forgiveness of up to 100 percent of the loan, upon meeting certain requirements. The loan is uncollateralized and is fully guaranteed by the Federal government.

"The Foundation has evaluated subsequent events through October 26, 2020, the date the [audited] consolidated financial statements were available to be issued..."

According to the Disabled Veterans National Foundation (DVNF) 2019 tax filing, DVNF reports re: "Describe in Schedule O whether...the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year" (IRS Form 990, Part VI, line 19):

"No other documents available to the public" (IRS Form 990, Schedule O).


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