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Veterans of Foreign Wars of the U.S. and Foundation

CharityWatch report issued
April 2019

F
CharityWatch Grade
Our independent grade based
on a number of factors.
 
42%
Program Percentage
Amount spent on programs
relative to overhead.
 
$70
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

Veterans of Foreign Wars of the U.S. and Foundation
406 W 34th Street
Kansas City, MO 64111

Other Names

Veterans of Foreign Wars
VFW

Tax Status

Multiple

Website

www.vfw.org

Stated Mission

To assist needy veterans, military personnel & their families; advocacy for veterans & active duty personnel; historical education & commemoration; promoting patriotism, youth activities & community service.

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Data based on Fiscal Year Ended 08/31/2018

Program Percentage: 42%

The percentage of Veterans of Foreign Wars of the U.S. and Foundation's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$102,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $70

How many dollars Veterans of Foreign Wars of the U.S. and Foundation spends on fundraising to raise each $100 of contributions.

$77,000,000

Calculated Total Contributions

(rounded)

Joint Costs

Veterans of Foreign Wars of the U.S. and 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
62% $43
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
Veterans of Foreign Wars Foundation IRS Form 990 43-1758998
Veterans of Foreign Wars of the United States IRS Form 990 44-0474290
Veterans of Foreign Wars of the United States Consolidated Audited Financial Statements Multiple
Veterans of Foreign Wars Foundation Audited Financial Statements 43-1758998
Entity: Veterans of Foreign Wars Foundation
Document Type: IRS Form 990
Tax ID: 43-1758998
Entity: Veterans of Foreign Wars of the United States
Document Type: IRS Form 990
Tax ID: 44-0474290
Entity: Veterans of Foreign Wars of the United States
Document Type: Consolidated Audited Financial Statements
Tax ID: Multiple
Entity: Veterans of Foreign Wars Foundation
Document Type: Audited Financial Statements
Tax ID: 43-1758998

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.
Veterans of Foreign Wars of the U.S. and Foundation
meets governance benchmarks.
 
Veterans of Foreign Wars of the U.S. and Foundation
does not meet 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 Robert Wallace Assistant Adjutant General/Executive Director $258,354
2 Debra Anderson Quartermaster General $253,885
3 Bernard J. Duffy Adjutant General $251,759
1
Name: Robert Wallace
Title: Assistant Adjutant General/Executive Director
Compensation: $258,354
2
Name: Debra Anderson
Title: Quartermaster General
Compensation: $253,885
3
Name: Bernard J. Duffy
Title: Adjutant General
Compensation: $251,759

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.
CharityWatch's rating of Veterans of Foreign Wars of the U.S. (VFW) and Foundation include the financial activities of the Veterans of Foreign Wars of the United States (tax ID #44-0474290) and the Veterans of Foreign Wars Foundation (tax ID #43-1758998), which are consolidated in the Organization's audited financial statements for the fiscal year ended August 31, 2018. All significant inter-entity transactions and accounts are eliminated in the audit consolidation.

The rating does not include the financial activities of the State Departments and Local Posts affiliated with the VFW, which are not included in the VFW audited consolidated financial statements, as noted below.

According to the VFW consolidated audit of August 31, 2018 (Note A, Nature of Organization):

"... The consolidated financial statements of the Organization exclude the financial statements of the various state departments (State Departments) and local posts (Local 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 U.S. (VFW) consolidated audit of August 31, 2018 (Note I, Marketing Service Agreement):

"The VFW has entered into an agreement with a professional fundraising contractor to conduct a series of campaigns... 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 $14,156,625 and $14,973,750 for the fiscal years ended August 31, 2018 and 2017, respectively. As the net income performance standard was not met for the fiscal years ended August 31, 2018 and 2017, the VFW has recorded a receivable in the amount of $940,627 and $2,457,592 as of August 31, 2018 and 2017, respectively. Based on management's history, this amount is fully collectible..."
According to the Veterans of Foreign Wars of the U.S. (VFW) consolidated audit of August 31, 2018 (Note H, Employee Benefit Plans):

"The Organization 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 nonvested) as of August 31, 2018 and 2017 was $1,192,640 and $1,129,213, respectively...

"The Organization 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, 2018 and 2017 was $313,837 and $229,980, respectively. As of August 31, 2018 and 2017, $313,837 and $229,980, respectively, has been placed in a separate investment account to fund the vested portion of such liability..."

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