According to the Veterans of Foreign Wars of the United States (VFW) audit of August 31, 2022 (Note A, Nature of Organization): "The Veterans of Foreign Wars of the United States (the VFW) was established in 1899 and chartered by Congress in 1936 and is exempt from federal income taxes under Section 501(c)(19) of the Internal Revenue Code (the IRC). The VFW's purpose is to provide fraternal, patriotic, historical, and education services; to assist worthy veterans; to perpetuate the memory and history of our dead, and to assist their widows and orphans; to maintain true allegiance to the government of the United States of America, and fidelity to its constitution and law; to foster true patriotism; to maintain and extend the institutions of American freedom; and to preserve and defend the United States from all her enemies. The financial statements of the VFW exclude the financial statements of the various state departments (State Departments) and local posts (Posts) affiliated with the VFW, since the VFW neither controls nor has an economic interest in such entities." According to the Veterans of Foreign Wars of the United States (VFW) audit of August 31, 2022 (Note B, Summary of Significant Accounting Policies, Deconsolidation of VFW Foundation): "The Veterans of Foreign Wars Foundation (the VFW Foundation) was previously presented in the consolidated financial statements as of and for the year ended August 31, 2021. On March 29, 2022, the VFW Foundation adopted amended bylaws that changed the composition of the board of directors subsequent to which the VFW no longer has the ability to appoint or control a majority of the VFW Foundation board members. Accordingly, the VFW deconsolidated the VFW Foundation and the effect is included within the statement of activities." CharityWatch separately rates Veterans of Foreign Wars of the United States Foundation (VFW Foundation).
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According to the Veterans of Foreign Wars of the United States (VFW) audit of August 31, 2022 (Note K, Employee Benefit Plans): "The VFW also has a severance pay plan, which provides benefits to employees upon termination who have been employed for at least 10 years. The estimated liability for such benefits (vested and non-vested) as of August 31, 2022 was $1,021,528..." "The VFW has an executive severance pay plan, which provides benefits to employees upon termination who occupy an executive position at the time of termination. The estimated liability for such benefits as of August 31, 2022 was $180,576. As of August 31, 2022, $180,576 has been placed in a separate investment account to fund the vested portion of such liability."
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According to the Veterans of Foreign Wars of the United States (VFW) audit of August 31, 2022 (Note L, Marketing Service Agreement): "The VFW has entered into an agreement with a professional fundraising contractor to conduct a series of campaigns to enhance the mission, programs and public awareness of the VFW. As part of this agreement, the contractor has certain performance standards that must be achieved with respect to net income, cost ratios, acquisition of non-member donors, and cash flows. With respect to net income, the contractor must attain a minimum net income on the direct mail campaigns and other programs covered by this agreement. If the contractor fails to meet the net income performance standard, then the contractor shall provide the VFW with payments in an amount sufficient to cause the net income performance standards to be met. The net income performance standard was $19,592,787 for the fiscal year ended August 31, 2022. As the net income performance standard was not met for the fiscal year ended August 31, 2022, the VFW has recorded a receivable in the amount of $6,735,116. Based on management's history, management believes this amount to be fully collectible. As such, no allowance is deemed necessary."
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According to the Veterans of Foreign Wars of the United States (VFW) audit of August 31, 2022 (Note N, Related Parties): "The VFW incurs certain expenses on behalf of the VFW Foundation. The total amount charged by VFW for these reimbursable expenses amount to $953,506 for the year ended August 31, 2022. In addition, the VFW Foundation leases office space from the VFW and incurred rental expense under lease of $43,212 for the year ended August 31, 2022. The VFW Foundation also pays the VFW for certain accounting, human resource and legal services provided by VFW employees. The VFW Foundation paid the VFW $60,000 for these services for each of the year ended August 31, 2022. The VFW Foundation provides certain contributions to the VFW. The total amount of contributions from the VFW Foundation to the VFW amounted to $2,695,138 for the year ended August 31, 2022. The VFW provided contributions that amount to $54,487 to the VFW Foundation for the year ended August 31, 2022. As of August 31, 2022, the VFW has recorded a receivable from the VFW Foundation in the amount of $67,031."
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According to the Veterans of Foreign Wars of the United States (VFW) tax filing for the fiscal year ended August 31, 2022, VFW reports re: Transactions with Interested Persons (IRS Form 990, Schedule L, Part V): Regarding Form 990, Sch L, Part IV, Column D: "Kelly Jones is the spouse of Kevin Jones, who was the Adjutant General until 7/22. Kelly Jones is the Director of Development for the Veterans of Foreign Wars of the United States..." The VFW reports paying Kelly Jones $184,201 in base compensation and employee benefits such as retirement and health insurance for her role as Director of Development, according to Schedule L. |
