Vietnam Veterans of America

Vietnam Veterans of America (VVA) reported spending 64% of its expenses on programs, according to its audited financial statements for the fiscal year ended February 28, 2025. CharityWatch's analysis of VVA's financial activity in fiscal 2025, however, shows that VVA spent only 35% of its expenses on programs.

Why the difference?

In its audit, VVA refers to the costs associated with collecting "discarded household items and automobiles from the community" to be a "Recycling Program." It subtracts these costs from the revenue it generates from selling these donated items to "contracted private companies." Therefore, these costs do not show up in VVA's reported fundraising and total expenses. A donor who takes VVA's reported operating expenses at face value would think VVA is operating more efficiently and spending a higher portion of its budget on programs than it actually is.

CharityWatch disagrees with VVA's reporting. The expenses a nonprofit incurs to raise contributions, whether the contributions are in the form of cash or non-cash items like donated household goods, are fundraising expenses and should be reported as such.

In fiscal 2025, VVA reported spending approximately $9.4 million on "solicitation costs for generating the items collected and sales costs for selling the items" in connection with its "Recycling Program," according to its audit of the same year. For this reason, CharityWatch adds this amount to VVA's reported fundraising expenses so that all of its solicitation costs are reflected in its rating. Correspondingly, CharityWatch adds to VVA's contributions the associated "Recycling Program Revenue," which was approximately $13.5 million in fiscal 2025.

According to the Vietnam Veterans of America (VVA) audit of February 28, 2025 (Note 2, Life Memberships):

"Life memberships are offered to VVA members at a fixed amount. In exchange for these dues, VVA is obligated to provide various services to these members for the duration of their lives. VVA has designated funds for providing future services. As February 28, 2025 and February 29, 2024, VVA had $333,560 and $901,339, respectively, in designated investments."