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CharityWatch is unable to provide a range of Top Three Salaries for this charity for the above fiscal reporting year because we lack complete salary data for the organization. Except for officers, directors, and trustees, the IRS does not require breakouts of salaries totaling less than $100,000.
For example, XYZ charity would be required to provide a breakout in its tax form of compensation to its president of $55,000, but would not be required to provide a breakout of $99,000 in compensation to its top medical researcher if that person is not also an officer, director, or trustee of the organization.
This charity reports that compensation to its officers, directors, and trustees is under $100,000 per individual. Donors who would like to view limited salary data for this organization should refer to its tax form, which may be available on the charity's web site or from a number of third-party sources. See CharityWatch's Links page for information on obtaining copies of charity tax forms.
Analysts' Notes
| CharityWatch's determination of the Program % and Cost to Raise $100 for Veterans Support Organization (VSO) in fiscal year 2014 includes the reallocation of $651,801 in "work program" expenses from program expenses to fundraising expenses. Despite what VSO reported on its financial documents, in the opinion of Charitywatch, VSO's "work program" does not help unemployed veterans acquire useful skills, such as computer programming, carpentry or nursing, to assist them in obtaining gainful employment. Rather, as described in VSO's audit for fiscal year 2012 (Note 1), "VSO prefers to offer our veterans the opportunity to raise donations in lieu of hiring outside soliciting firms that charge a fee." CharityWatch believes that the cost of hiring fundraisers should be reported as a fundraising expense regardless of who is doing the fundraising. |
| CharityWatch searched multiple public sources for Veterans Support Organization's (VSO) audited financial statements for the fiscal years ended 9/30/2014 and 9/30/2013, respectively, and has been unable to locate a copy of these documents, assuming they exist. In the past CharityWatch has also requested audits directly from VSO and has received no response (See Analysts' Notes below). For this reason, CharityWatch's rating of VSO for its fiscal year-ended 9/30/2014 is based on our analysis of its IRS tax Form 990, alone. VSO's IRS Form 990 Schedule D reports its "Assessed Tax Liability" as of 9/30/2014 as $151,367." CharityWatch will continue to post the below Analysts' Notes related to VSO's audited financial statements for fiscal year 2012, which outline issues at the organization, some of which may be ongoing. |
| CharityWatch sent a request to Veterans Support Organization (VSO) on July 17, 2014 for the charity's most current tax form and audited financial statements. We received a confirmation that our request was received by VSO on July 25, 2014. However, the organization never responded to our request by providing the financial documents. In November of 2014, CharityWatch obtained the fiscal year-ended 9/30/2013 IRS Form 990 for VSO from its website. However, independent audited financial statements for fiscal 2013 were not posted on VSO's site, and CharityWatch has been unable to locate VSO's audit from a public source. Therefore, CharityWatch's rating for VSO based on its fiscal year ending 9/30/2013 is based on VSO's IRS Form 990 only. CharityWatch will continue to post the below Analysts' Notes related to VSO's audited financial statements for fiscal year 2012, which outline issues at the organization, some of which may be ongoing. VSO's IRS Form 990 Schedule D reports its "Payroll Tax Liability" as of 9/30/2013 as $158,745. |
| According to The Veterans Support Organization (VSO) audit for September 30, 2012 (Note 6): "In 2010, VSO entered into an agreement to co-purchase a 50% interest in Veterans Support Organization--NFS, LLC (the "LLC") (a for profit partnership) with a Board member. The LLC was formed solely to own and operate a building located in Rhode Island. The building was to serve as VSO corporate headquarters, as general offices for the Board Member and to provide office space for third party rental income." "... On, April 12, 2012, the VSO entered into a Separation Agreement and General Release with the Board Member ("Agreement") in order to dissolve the LLC after the satisfaction and discharge of the Promissory Note, Mortgage, Security Agreement and Assignment of Leases and Rents by and between Coastway Community Bank and the LLC. The Agreement also provided that the Board Member acquire full legal control of the building." "The Agreement provided that the VSO pay $40,000 of the note payable to Coastway Community Bank, and the Board Member pay the balance of the note, approximately $45,600. On July 24, 2012 the VSO entered into an unsecured $45,600 promissory note to pay back the Board Member pursuant to the Separation Agreement..." "... As a result of the Separation Agreement, the $65,907 [VSO's capital account balance as recorded by the LLC at December 31, 2012] is recorded as an investment loss in 2012. The Board Member agreed to resign from the VSO and release the VSO from all LLC and building obligations, among other covenants." |
| According to The Veterans Support Organization (VSO) audit for September 30, 2012 (Note 7): "In 2012, the Department of the Treasury--IRS, performed a full examination of The VSO's 2009 corporate tax filings ... The IRS examination concluded the Participants [of VSO's "work program"] to be employees [and not subcontractors as had been classified by VSO] and offered VSO to participate in the "Classification Settlement Program" whereby the exposure from the employment tax examination is restricted to 2009 as long as VSO complies with the employee classification for all Participants by October 1, 2012. The VSO has complied ... and has agreed with the settlement program whereby the 2009 deficiency amount is for certain payroll taxes, including penalties, amounting to $137,413." "The New York Department of Taxation proposed a $41,279 assessment as result of their payroll tax examination. The VSO has not agreed to and intends to contest the methods used in the New York Department's proposed assessment. Other states may propose payroll tax liabilities and therefore additional liabilities may be incurred." |
| According to The Veterans Support Organization (VSO) audit for September 30, 2012 (Note 8): "A former employee sued the VSO for wrongful termination for various reasons. The case settled at mediation on October 2, 2012. As of April 2013, the VSO had fully complied with the Settlement Agreement with recorded cost as of September 30, 2012 of $68,894 including legal fees." |
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Donor Alerts
In a letter to the Federal Trade Commission Chairman, seven Connecticut Congressmen allege that Veterans Support Organization (VSO) employed paid solicitors to pose as volunteers next to shopping centers. VSO only spent $379,000 in grants to veterans and organizations in fiscal 2010. VSO earns an F rating from CharityWatch. The group claims to have no fundraising costs on its audit and tax form for fiscal 2010, yet raised over $5.6 million in contributions. Despite what VSO reported on its financial documents, CharityWatch believes that it incurred nearly $4 million in fundraising costs that were reported as "On-the-job training programs" on its tax form. VSO's "program" does not help unemployed veterans obtain useful skills, such as computer programming, carpentry or nursing, to help them to obtain gainful employment. But the "program" does help VSO raise money for itself by turning veterans into street solicitors, who are instructed to keep 30% of what they raise. CharityWatch believes that the cost of hiring fundraisers should be reported as a fundraising expense regardless of who is doing the fundraising. In Bucket-drop Donations Don't Always Reach Veterans, Florida Today highlights the VSO's questionable cash solicitation practices. |