The Wounded Warrior Project, the charity for wounded veterans, is being criticized for how it is spending donor money, with a CBS News investigation alleging that a majority of the money that should be used on recovery programs is instead used for conferences and lavish parties.
Speaking to an assortment of current and former employees, the investigation team discovered just how deeply the charity's misappropriation of funds ran.
One such testimony came from Army Staff Sergeant Erick Millette, who returned from Iraq in 2006 with a bronze star and a purple heart, as well as traumatic brain injury and PTSD. He said that he initially admired the charity's work and even participated in its programs, becoming a public speaker with the group in 2013. However, he wound up quitting only two years later.
He said that he witnessed needless spending on staff and lavish parties during his two-year tenure, according to Fox News.
"Their mission is to honor and empower wounded warriors, but what the public doesn't see is how they spend their money," Millette said.
"Going to a nice fancy restaurant is not team building. Staying at a lavish hotel at the beach here in Jacksonville, and requiring staff that lives in the area to stay at the hotel is not team building," he added.
Just how much money does the group spend on these conferences and meetings? Tax forms obtained by CBS indicate that in 2014, the charity spent $26 million for such gatherings, up from the $1.7 million used in 2010.
Two former employees, who asked CBS not to show their faces on camera, blamed CEO Steven Nardizzi, who rose to the position in 2009, for the spending increase. In their accusation, they referenced a 2014 annual meeting at a resort in Colorado Springs that cost about $3 million.
"He rappelled down the side of a building at one of the all hands events. He's come in on a Segway, he's come in on a horse," one of them said.
In particular, what surprised the investigation team was just how much of its budget WWP actually spends on vets. Based on public records from Charity Navigator, the Wounded Warrior Project spends about 60 percent of its budget on vets. This a far cry from the 96 and 91 percent Disabled American Veterans Charitable Service Trust and Fisher House devotes, respectively.
The investigation into the charity follows in the footsteps of another conducted in 2012-2013 by The Tampa Bay Times and the Center for Investigative Reporting. Though it didn't make the "worst 50 list" based on money blown on soliciting costs, the investigation did find that it has gotten mixed reviews from independent charity watchdogs. For example, Charity Watch gave the group a "C+" grade, up from a "D" in 2010.
In the meantime, armed with this knowledge, CBS tried to get into contact with Nardizzi but was instead referred to Director of Alumni Captain Ryan Kules, who denied the excessive spending accusations.
"It's the best use of donor dollars to ensure we are providing programs and services to our warriors and families at the highest quality," Kules said.
He reiterated that answer when asked about why the conferences are held at five-star resorts instead of cheaper alternatives: "Like I said, it's to make sure we are aligned and can build as a team. Be able to be able to provide the best quality services."
Kules concluded by denying that the Colorado conference cost $3 million, but he was unable to say how much it did cost. Likewise, he denied that charity spends money on alcohol or any other kind of excessive spending as a whole.
