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."