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Disabled Veterans National Foundation

CharityWatch report issued
January 2019

F
CharityWatch Grade
Our independent grade based
on a number of factors.
 
4%
Program Percentage
Amount spent on programs
relative to overhead.
 
$100
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 12/31/2017

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).

$29,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $100

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

$25,000,000

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
21% $82
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 Audited Financial Statements 26-1446183
Disabled Veterans National Foundation IRS Form 990 26-1446183
Entity: Disabled Veterans National Foundation
Document Type: Audited Financial Statements
Tax ID: 26-1446183
Entity: Disabled Veterans National Foundation
Document Type: IRS Form 990
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 Disabled Veterans National Foundation (DVNF) audit of December 31, 2017 (Note 9, Unrestricted Net Assets (Deficit)):

"Unrestricted net assets (deficit) consist of unrestricted 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 unrestricted net assets were negative in the amount of $(6,946,307) and $(3,968,104) at December 31, 2017 and 2016, respectively."


Also according to the DVNF 2017 audit (Audit Note 10, Going Concern):

"... [T]he Foundation incurred net losses of $2,978,203 and $1,560,501 during the years ended December 31, 2017 and 2016, respectively. The Foundation's total liabilities exceeds its total assets for the years ended December 31, 2017 and 2016 by $6,945,307 and $3,968,104, respectively.

"The Foundation's vendor accounts payable over the past two years has continually increased, due to its direct mail campaign methodology for raising funds. For the year ended December 31, 2017, direct mail vendor accounts payable increased $2,038,964. The Foundation's direct mail campaign costs is the major contributing factor to its increasing net asset (deficit).

"The following describes management's plans that alleviated substantial doubt about the Foundation's ability to continue as a going concern.

"Management has created a three year Deficit Reduction Plan which includes working with its vendors by reducing its production costs by 3.2 million dollars annually and in addition; by receiving 1.3 million dollars in cost concession 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 2017, the Foundation established additional revenue streams outside of direct mail with the utilization of online giving and attracting corporate, private and planned giving donors."
According to the Disabled Veterans National Foundation (DVNF) 2017 tax filing, DVNF received in-kind contributions on which it placed a total value of $2,550,903" (IRS Form 990, Schedule M).

[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, 2017 (Note 3, Concentration of Credit Risk):

"In November 2016, the Foundation signed a new agreement with Direct Mail Processors, Inc. to provide donation processing, data entry, and other related services. In addition, the Foundation uses 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, 2017 and 2016 was $10,098,094 and $7,692,622, 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 2017 tax filing, DVNF reports compensating four vendors an aggregate total of approximately $25.6 million during 2017 in the following amounts (IRS Form 990, Part VII, Section B, Independent Contractors):

(1) Innovairre: $22,999,593 for "Direct Mail Prod[uction]"
(2) VeraData: $1,674,013 for "Data and Marketing"
(3) World Assist: $185,030 for "Marketing"
(4) Direct Mail Processors: $771,824 for "Caging"
According to the Disabled Veterans National Foundation (DVNF) audit of December 31, 2015 (Note 14, Inquiry Concluded/Debt Relief):

"An inquiry by the Office of the Attorney General of the State of New York was concluded on June 14, 2014, with entry into an Assurance of Discontinuance. Under the terms of the Assurance, then current board members were required to resign, and new policies for fundraising were adopted. A new board and management team were installed. The State of New York will monitor the Foundation through July 15, 2019. The Foundation received as part of the resolution financial relief in the form of forgiveness of debt from major vendors in the amount of $13.8 million dollars."

"Total forgiveness of debt by vendors for the years ended December 31, 2015 and 2014 was $0 and $13,944,661, respectively."

[Note: According to the NY Attorney General's 7/1/2014 press release regarding the settlement agreement involving DVNF, "after a transition period winding down its existing direct mail campaign, DVNF is prohibited, for three years, from using Quadriga...to design or manage its charitable fundraising appeals..." DVNF reported paying approximately $19.7 million to Quadriga for direct mail production in 2015, according to its 2015 tax filing. See the Articles & Alerts section, below, for more on DVNF's settlement with the State of New York.]

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