The National Vietnam Veterans Foundation raised nearly $9 million in 2014
But it donated less than 2% of that money
At first glance, the National Vietnam Veterans Foundation is a roaring success. According to its tax filings, the charity has received more than $29 million in donations from generous Americans from 2010 to 2014 for what it calls on its website “aiding, supporting and benefiting America’s veterans and their families.”
But look a little closer on those same filings and you can see that nearly all of those donations have been cycled back to telemarketers, leaving less than 2 percent for actual veterans and veterans’ charitable causes.
That’s why Charity Navigator, one of the nation’s largest and most influential charity watchdog organizations, has given the charity a “zero” out of four stars for those same four years.
“It’s a zero-star organization and you can’t go lower than that,” says Michael Thatcher, Charity Navigator’s CEO. “They don’t have an independent board of directors, they actually don’t even have a comprehensive board of directors – only three members on the board at this point in time and some of them are family. So one can say, is this representative of an independent board? It’s not.”
The charity’s most recently filed tax return, for 2014, lists a catalogue of expenses paid for by donations: including $133,000 for travel, $21,000 for unnamed “awards”, $70,000 for a category described as “other expenses” and even a little more than $8,000 for parking.
Charity president works at VA
The CEO and founder of the National Vietnam Veterans Foundation, himself a veteran, is J. Thomas Burch, who is also a federal employee working as an attorney for the Department of Veterans Affairs. Burch is deputy director in the VA’s Office of General Counsel, where he pulled down $127,000 in salary in 2014. That’s the same year he drew a salary of $65,000 as head of his “zero-star” charity.
A VA spokesman told CNN Burch’s position at the veteran’s charity is not a conflict of interest “per se”. But the spokesman added the VA is now “reviewing” the situation and that the agency’s Office of Inspector General is handling that review.
When contacted by CNN, Burch asked that we not contact him at his job at the Department of Veterans Affairs, but he refused to answer phone calls placed to his home. CNN tried to confront Burch as he drove home from work in a black Rolls Royce, but upon seeing a CNN camera crew, Burch gunned the Rolls Royce down his suburban Washington, D.C. street and disappeared.
The charity’s vice president, David Kauffman, said in an email that the NVVF was responsible for “feeding homeless and unemployed veterans by donating to food banks, sent personal care kits to hospitalized veterans and donated blankets, hats and gloves to homeless centers.”
According to the charity’s tax filings, though, it accounted for about $122,000 in cash donations to veterans, out of more than $8.5 million raised in donations in 2014. That is less than 2% of the charities cash donations being used to support veterans and their families.