Workers say charity gave little money to vets

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Workers say charity gave little money to vets
By Kristin M. Hall
The Associated Press
Posted : Sunday Dec 16, 2012

NASHVILLE, Tenn. — A veterans charity already under scrutiny for how it raised hundreds of thousands of dollars in Tennessee handed out only a fraction of the money in the form of gift cards and threatened to fire workers if they didn’t meet fundraising quotas, former employees say.

The Stuart, Fla.-based Veterans Support Organization has been criticized by other groups for how it uses donations raised outside retail stores and supermarkets. It had been fined by Tennessee for making false claims about the benefits it offered, and Connecticut lawmakers called for a federal investigation before the group’s Tennessee branch closed last month.

However, former employees interviewed by The Associated Press shed new details on how the charity operated. For instance, it claimed to help veterans and non-veterans by providing them jobs, but disciplined people who didn’t meet fundraising quotas. It also claimed to provide housing and help for poor or homeless veterans, though the former workers say that amounted to little more than a rented home in Tennessee where the workers were charged $400 a month for bunk beds and plastic dressers.

It’s not the first such charity to be scrutinized as thousands of veterans leave the military after serving in the wars in Iraq and Afghanistan. In Ohio, for instance, a man has been charged with running a $100 million scam through a bogus charity collecting donations for Navy veterans. Other charities around the country have been scrutinized for spending large portions of the donations they receive on operating expenses.

According to the 2011 earnings report to the IRS, the charity took in contributions of nearly $8.5 million but distributed less than $300,000 in grants and contributions. More than $1.8 million went to salaries and compensation, including an annual salary of $286,000 for president and founder Richard Van Houten. Jones also said chapter managers could earn large bonuses if fundraising goals were met.
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