Worst Veteran Charities: How to Avoid Donating to Ineffective Organizations

When I first wanted to support a veteran charity, I naturally assumed that every organization claiming to help our servicemen and women was worthy of my hard-earned money. I couldn’t have been more wrong. It turns out, many charities that say they support veterans spend more on themselves than they do on the people they’re supposed to help.

You’d think that charities dedicated to helping veterans would do everything they can to serve those who’ve served us. Unfortunately, some of these organizations have become notorious for mismanaging funds, overspending on fundraising, or even outright scams. If you’re looking to donate, knowing which organizations to avoid is crucial. Here’s a guide to some of the worst veteran charities and how to spot the red flags.

1. How to Spot a Bad Veteran Charity

Before diving into the list of poorly rated veteran charities, it’s important to know the warning signs of ineffective or misleading organizations. Here are the red flags I learned to look out for:

a. High Administrative and Fundraising Costs

Some charities spend far too much on their own administration and fundraising efforts. Ideally, most of your donation should go toward the programs that directly benefit veterans, not paying for executive salaries or endless fundraising campaigns.

  • What to look for: A charity that spends more than 30% of its income on administrative costs or fundraising is a red flag. Charities should ideally spend at least 75% of their budget on their programs and services.

b. Lack of Transparency

Reputable charities will be open about how they spend their money. If a charity doesn’t publish financial reports, annual reviews, or clear breakdowns of their spending, it’s time to dig deeper or move on.

  • Red flag: Avoid organizations that give vague information about their spending or have little to no financial accountability publicly available.

c. Bad Ratings from Charity Watchdogs

Websites like Charity Navigator, CharityWatch, and GuideStar evaluate charities based on their transparency, financial health, and impact. Charities with consistently low ratings on these platforms should raise concerns.

d. Aggressive Fundraising

If a charity constantly bombards you with emails, phone calls, or mailers asking for more money, they could be spending more on fundraising than helping veterans.

2. Worst Veteran Charities You Should Avoid

Here are some veteran charities that have been widely criticized for inefficiency, excessive spending on overhead, or deceptive fundraising practices.

a. The Veterans Support Foundation

Once hailed as a promising organization, the Veterans Support Foundation (VSF) has come under scrutiny for its financial practices.

  • Concerns: VSF spends a large portion of its donations on administrative costs, leaving less than half of its income to go directly to veteran services. Despite its name, it’s been criticized for allocating more to salaries and overhead than helping veterans directly.
  • Why to avoid: If you want your donation to make a significant impact on veterans, your money may not be well-used here.

b. Help the Vets

Help the Vets was one of the most notorious veteran charity scams in recent history. Founder Neil Paulson ran the charity for years, claiming to help wounded veterans, but instead used most of the donations for personal luxuries and excessive fundraising.

  • Concerns: The charity was shut down in 2018 after it was revealed that only about 5% of donations actually went to help veterans. The rest was spent on Paulson’s salary, fundraising, and other questionable expenses.
  • Why to avoid: It’s no longer operational, but its fraudulent practices serve as a reminder to be cautious when donating to lesser-known organizations.

c. The National Veterans Service Fund

The National Veterans Service Fund (NVSF) was once seen as a legitimate organization, but it has been heavily criticized for its low program spending.

  • Concerns: NVSF was known for using less than 20% of its funds on direct services to veterans, with the majority going toward fundraising efforts and administrative costs.
  • Why to avoid: Though they were active for years, NVSF eventually closed down due to poor performance and scrutiny over their financial practices.

d. The American Veterans Foundation (AVF)

The American Veterans Foundation has been flagged for spending the vast majority of its donations on telemarketing and administrative costs rather than directly helping veterans.

  • Concerns: AVF was criticized for spending over 85% of its donations on fundraising and overhead, with very little going to support veterans.
  • Why to avoid: If you’re looking for an organization that makes a real impact, AVF doesn’t deliver on its promises.

e. Healing Heroes Network

Healing Heroes Network claimed to provide financial assistance for medical care to veterans injured in Iraq and Afghanistan, but an investigation revealed the charity was spending much more on fundraising than veteran support.

  • Concerns: The Federal Trade Commission (FTC) shut down the organization in 2019 after it was revealed that more than 90% of the funds went to telemarketing, salaries, and administrative expenses.
  • Why to avoid: The charity no longer operates, but it serves as a lesson to thoroughly research any organization before donating.

3. Better Alternatives: Top Veteran Charities to Support

The good news? There are many excellent veteran charities that put your donations to work where they’re needed most. Here are a few highly-rated organizations that you can trust:

a. Fisher House Foundation

Fisher House provides free housing to military families who need to be near their loved ones during medical treatment. They are known for their transparency and impact, with a large portion of donations going directly to their programs.

  • What they do: Provides military and veteran families with no-cost temporary lodging while a loved one is receiving medical care.
  • Why it’s great: Fisher House spends more than 90% of its budget on services, and has an outstanding track record with charity watchdogs.

b. Wounded Warrior Project

Wounded Warrior Project (WWP) focuses on helping wounded veterans through rehabilitation programs, mental health support, and community reintegration. After some past controversies, WWP has made significant improvements in transparency and efficiency.

  • What they do: Provides programs to support veterans recovering from physical and psychological wounds.
  • Why it’s great: They’ve addressed previous criticisms and now allocate a higher percentage of donations toward veteran services. WWP is once again recognized as a top performer by many charity watchdogs.

c. Semper Fi & America’s Fund

Semper Fi & America’s Fund provides urgently needed resources to combat-wounded, critically ill, and catastrophically injured service members from all U.S. Armed Forces.

  • What they do: Offers financial assistance and support programs for injured veterans and their families.
  • Why it’s great: Consistently highly rated for low overhead and high program spending, ensuring your donation directly helps veterans.

d. The Gary Sinise Foundation

Founded by actor Gary Sinise, this organization supports veterans, first responders, and their families by providing housing, mobility devices, and financial assistance.

  • What they do: Focuses on building specially adapted smart homes for disabled veterans and offering other forms of support.
  • Why it’s great: Known for transparency and impact, with over 85% of donations going directly to programs.

4. How to Ensure Your Donation Counts

Here are some tips to help ensure that your donation goes to a reputable veteran charity:

a. Check Charity Ratings

Always check a charity’s rating on Charity Navigator, CharityWatch, or GuideStar. These sites provide insight into the financial health, transparency, and effectiveness of organizations.

b. Ask Questions

Don’t hesitate to contact the charity directly and ask where your donation will go. A trustworthy charity will be transparent about how they use funds and will readily provide financial reports.

c. Read the Fine Print

Beware of charities with vague promises like “helping veterans” without providing clear details about how they do it. Reputable organizations will offer specifics on their programs and how they make a difference.

Conclusion

While there are plenty of veteran charities doing incredible work, some are simply not living up to their promises. By being aware of the warning signs and taking the time to research, you can make sure your donation goes where it’s needed most. Avoid the worst offenders, and choose a highly rated charity that genuinely supports our veterans. Your contribution will help make a real impact in the lives of those who have served

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