CharityWatch now provides separate ratings for the Veterans of Foreign Wars and the Veterans of Foreign Wars Foundation starting with the organizations' fiscal years ended August 31, 2022.
According to a letter sent to CharityWatch from the Veterans of Foreign Wars Foundation dated May 19, 2023:
"The VFW Foundation made changes to its Bylaws and changed the structure of the Board of Directors. The VFW Foundation now has a more independent board, and the financial statements of the VFW Foundation are no longer required to be consolidated with the VFW [Veterans of Foreign Wars] financial statements. This change was effective for the fiscal year ended August 31, 2022."
CharityWatch is unable to provide a letter grade rating of the Veterans of Foreign Wars Foundation for the charity's fiscal year ended August 31, 2022 because the vast majority of its program expenses consisted of grants to its related organization, the Veterans of Foreign Wars. In fiscal 2022, $2,695,138 (or 74.9%) of its total reported program expenses of $3,596,721 consisted of grants to its related organization, the Veterans of Foreign Wars, according to the charity's tax filing (IRS Form 990, Part IX and Schedule R).
Veterans of Foreign Wars is rated separately by CharityWatch.
CharityWatch's methodology is not designed to measure how efficiently one legal entity of a charity grants funds to one of its related organizations. For this reason, we do not believe it is fair to publish a Program % for the Foundation alongside those of other charities that conduct their own programs and/or primarily make grants to other, independent charities. For this reason, CharityWatch has assigned the VFW Foundation a "NR" (Not Ratable) rating for fiscal 2022.
According to the Veterans of Foreign Wars Foundation's fiscal 2022 audited financial statements, Note I, Related Parties:
"The Foundation provides certain contributions to the VFW. The total amount of contributions from the Foundation to the VFW amounted to $2,695,138 and $2,970,200 for the years ended August 31, 2022 and 2021, respectively..."
According to the Veterans of Foreign Wars Foundation's fiscal 2022 IRS Form 990, Schedule O, in reference to Form 990, Part V, Line 2a:
"For ease of administration and in order to provide benefits, the Veterans of Foreign Wars of the United States provides selected employees to the Foundation. These employees work exclusively for the Foundation and on Foundation business and activities. The VFW Foundation has no employees of its own. The Foundation reimburses the Veterans of Foreign Wars for the salary and benefit expenses incurred for these employees...As of 12/31/2021, there were eight employees included in the W-3 filing made by the Veterans of Foreign Wars of the United States that work exclusively for the VFW Foundation..."
The Foundation reports reimbursing Veterans of Foreign Wars a total of $953,506 in fiscal year 2022. (IRS Form 990, Schedule R)