F-Rated Veterans Charities to Avoid This Veterans Day 2023

Donors need to be particularly careful when donating to veterans and military charities. Unscrupulous fundraisers know that it is relatively easy to raise money for this cause because playing on both the empathy and patriotism of potential donors can pack a double punch, making it more difficult for people to say no.

One thing donors should keep in mind is that there is a difference between a worthy cause and a worthy charity. If you are someone who feels strongly about supporting any particular cause, resist the urge to donate to the first charity working within that cause when confronted with a solicitation.

Donors often ask CharityWatch if a particular charity is “legitimate.” While this is a worthwhile question, it is only one step in ensuring that any donation you are considering making to charity will be used the way you intend and truly make an impact in supporting the causes important to you.

This Veterans Day follow CharityWatch’s 5 Steps for Informed Giving and read the below list of F-Rated Veterans & Military nonprofits to consider which organizations to avoid.

In addition, view CharityWatch’s list of Top-Rated Veterans & Military Charities to identify an efficient charity to support that has also met CharityWatch’s benchmarks for governance and transparency       

"F" Rated Veterans & Military Charities 

Adoptaplatoon Soldier Support Effort has a mission of providing deployed military service members with quality of life and morale lifting packages. In an article we published in 2019, CharityWatch called on Adoptaplatoon to adopt better accountability. 

Is Adoptaplatoon Soldier Support Effort Legit?

Adoptaplatoon is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 24%
• Overhead %: 76%
• Cost to Raise each $100 in Cash Support: $77
• Fiscal year ended 12/31/2022

From CharityWatch Analyst Notes on Adoptaplatoon:

• Approximately 95% of Adoptaplatoon's revenue is derived from the fundraising efforts of a professional fundraising company. 

AMVETS National Service Foundation has a mission of providing support to veterans through service programs as well as providing community and youth-oriented programs designed to promote unity and patriotism. 

AMVETS National Service Foundation is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 28%
• Overhead %: 72%
• Cost to Raise each $100 in Cash Support: $64
• Fiscal year ended 8/31/2022
  
  

CharityWatch provides a separate rating for AMVETS National Headquarters. 

Coalition to Salute America's Heroes has a mission of providing support to wounded troops, veterans, and their families and informing the public of the needs of wounded veterans. 

Coalition to Salute America’s Heroes is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 38%
• Overhead %: 62%
• Cost to Raise each $100 in Cash Support: $62
• Fiscal year ended 12/31/2022

Select CharityWatch Articles on Coalition to Salute America's Heroes:

• Congressionally Scorned Charity Leader Receives $1.9 Million
• CharityWatch Hall of Shame: The Personalities Behind Charity Scandals
• Leadership Booted at Dishonored Veterans Charity Ordered to Pay $2.5 Million Restitution
  
  

Disabled Veterans National Foundation has a mission to change the lives of men and women who came home wounded or sick after defending our safety and freedom. 

Disabled Veterans National Foundation is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 5%
• Overhead %: 95%
• Cost to Raise each $100 in Cash Support: $101
• Fiscal year ended 09/30/2022

Read CharityWatch's many Articles & Alerts on Disabled Veterans National Foundation (DVNF) here. 

From CharityWatch Analyst Notes:

Disabled Veterans National Foundation (DVNF) reports compensating three vendors an aggregate of approximately $23.1 million during 2022. The largest amount went to a company called Innovairre for "Direct Mail prod[uction]", according to DVNF's audited financial statements of the same year. 

In April 2020 DVNF applied for and received a Paycheck Protection Program (PPP) loan in the amount of $169,600.

For The Troops has a mission to send care packages filled with basic necessities, such as snack items, DVDs, CDs, and personal care items and magazines to our troops around the world. 

For The Troops is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 36%
• Overhead %: 64%
• Cost to Raise each $100 in Cash Support: $74
• Fiscal year ended 12/31/2022

From CharityWatch Analyst Notes:

• According to the For The Troops (FTT) 2022 tax filing (IRS Form 990, Schedule O), For The Troops reports that Paula Cornell (FTT's President) and James Cornell (FTT's Secretary) are the only two officers of the organization, and are two of the seven total individuals on the charity's board of directors in 2022 (IRS Form 990, Part VII, Section A). 

• According to its IRS Form 990 reporting, FTT's 2022 financial statements were not audited by an independent accountant. (IRS Form 990, Part XIII). Read this CharityWatch article for more information on the importance of an independent audit.  

Help Heal Veterans has a mission to enrich the lives of veterans & military personnel. Manufactures & distributes therapeutic arts & crafts kits to support the healing of veterans & active military; educates the public on the needs of veterans; and strives to make a positive environmental impact.

 Help Heal Veterans is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 27%
• Overhead %: 73%
• Cost to Raise each $100 in Cash Support: $58
• Fiscal year ended 07/31/2020

From CharityWatch Analyst Notes on Help Heal Veterans:

• In 2020 HHV applied for and received a Paycheck Protection Program (PPP) loan in the amount of $468,302.

Select CharityWatch Articles on Help Heal Veterans:

Leadership Booted at Dishonored Veterans Charity Ordered to Pay $2.5 Million Restitution

Homes for Veterans has a mission to construct handicap accessible homes for disabled veterans of war.

Help Heal Veterans is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 19%
• Overhead %: 81%
• Cost to Raise each $100 in Cash Support: $83
• Fiscal year ended 09/30/2022

From CharityWatch Analyst Notes on Homes for Veterans:

• According to Homes for Veterans, a NJ Non Profit Corporation tax filing for the fiscal year ended September 30, 2022, Homes for Veterans reports having 4 voting members of its governing body, of which 4 are reported as "independent." (IRS Form 990, Part VI, lines 1a &1b). However, only two Officers and zero Individual Trustees or Directors are reported in Form 990 Part VII, Section A. The 2 reported Officers positions are Presidents and Vice President, and they both share the same last name of DiPaola. 

HonorBound Foundation has a mission to serve veterans and their families with honor, dignity, and respect by advocating for and providing immediate assistance to them during times of crisis.

HonorBound Foundation is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 37%
• Overhead %: 63%
• Cost to Raise each $100 in Cash Support: $114
• Fiscal year ended 06/30/2020

Mutts With A Mission has a mission to provide selected, specially trained service/assistance dogs to qualified veterans, wounded warriors, law enforcement officers, federal agents and first responders. To allow qualified candidates the opportunity to train qualified dogs as service dogs. 

Mutts With A Mission is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 11%
• Overhead %: 89%
• Cost to Raise each $100 in Cash Support: $79
• Fiscal year ended 12/31/2021

From CharityWatch Analyst Notes on Mutts With A Mission:

Over 90% of the Organization's support is from the direct mail campaigns directed by one professional fundraising firm, ForthRight Strategy. One of the Organization's Trustees is employed by ForthRight Strategy and serves as the Senior Account Executive over the Organization's direct mail program.

Paralyzed Veterans of America has a mission to be the leading advocate for quality healthcare for PVA members; research and education addressing spinal cord injury and dysfunction; benefits available as a result of members' military service; civil rights and opportunities that maximize the independence of members. 

Paralyzed Veterans of America is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F
• Program %: 31%
• Overhead %: 69%
• Cost to Raise each $100 in Cash Support: $53
• Fiscal year ended 6/30/2021

Read Veterans Charities Protest Their F's.

From CharityWatch Analyst Notes:

According to the Paralyzed Veterans of America (PVA) consolidated audit of June 30, 2021 (Note 20, Related Parties):

•  "During the years ended June 30, 2021 and 2020, PVA paid $54,000 to a company owned by one of the [PVA] Research Foundation's directors for consulting services. In addition, PVA paid $862,876 and $169,372, respectively, to a university for research in which one of the Research Foundation's directors is a professor."

Purple Heart Foundation has a mission to holistically enhance the quality of life for all veterans & their families, providing them with direct service and fostering an environment of comradery & goodwill among combat wounded veterans. 

Purple Heart Foundation is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F
• Program %: 6%
• Overhead %: 94%
• Cost to Raise each $100 in Cash Support: $91
• Fiscal year ended 6/30/2022

From CharityWatch Analyst Notes:

According to the Purple Heart Foundation consolidated audit of June 30, 2022 (Note 7, Related Party Transactions):

• "Grants: The Board of Directors Organization is primarily proposed of members of National, including former National Commanders. An organization provides funding to National, it's Auxiliary and three of its state departments to various clients. Total grants of awarded to National, it's Auxiliary and its state department, totaled, $568,838 a dollar sign 641,592 for the years and June 30, 2022 and 2021, respectively at June 30, 2022 and 2021, related grants available totaled $88,500 and $96,890, respectively, in the accompanying consolidated statements of financial position."

According to the Purple Heart Foundation consolidated audit of June 30, 2022 (Note 5, Paycheck Protection Program (PPP) Funding):

•  "The Organization obtained their first forgivable loan in the amount of $294,000 under the PPP from a financial institution, which was fully forgiven in December 2020. The Organization obtained a second forgivable loan in the amount of $293,438 under the PPP from a financial institution, which is guaranteed by the SBA and was fully forgiven in November 2021."

Veterans of Foreign Wars has a mission to foster camaraderie among United States veterans of overseas conflicts. To serve our veterans, the military and our communities. To advocate behalf of all veterans.

 Veterans of Foreign Wars is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F  
• Program %: 44%
• Overhead %: 56%
• Cost to Raise each $100 in Cash Support: $72
• Fiscal year ended 08/31/2022

From CharityWatch Analyst Notes on Veterans of Foreign Wars:

According to the Veterans of Foreign Wars of the United States (the VFW) audit of August 31, 2022 (Note B, Summary of Significant Accounting Policies, Deconsolidation of VFW Foundation):

"The Veterans of Foreign Wares of the United States (the VFW) 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 with the statement of activities."

Veterans Relief Network has a mission to provide financial assistance to U.S. military veterans and their families experiencing financial difficulty.

Veterans Relief Network is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is “legitimate” by virtue of being registered with the IRS that it is also operating efficiently and effectively.

• Rating: F
• Program %: 7%
• Overhead %: 93%
• Cost to Raise each $100 in Cash Support: $91
• Fiscal year ended 12/31/2022

From CharityWatch Analyst Notes:

• VRN used three companies: Midwest Publishing, Inc.; Innovative Teleservices; and Precision Performance; as paid professional fundraisers during 2022. The portion of the contributions raised through these campaigns that went to these three fundraisers in aggregate was approximately 89% (IRS Form 990, Schedule G, Part I, Fundraising Activities).

TroopsDirect has a mission to supply globally positioned U.S. military units with items that may not be issued or readily available through government channels; specializes in medical, operational, & tactical support; advocates for our military through public outreach & education regarding the needs & risks associated with their service. 

TroopsDirect is registered with the Internal Revenue Service (IRS) as a 501(c)(3) public charity. However, there are no federal laws in place requiring charities to spend the majority of the donations they receive on their programs. For this reason, donors cannot assume that just because a charity is "legitimate" by virtue of being registered with the IRS that it is also operating efficiently and effectively.

Rating: F
Program %: 26%
Overhead %: 74%
Cost to Raise each $100 in Cash Support: $67