In 2014, the Wounded Warriors Project charity received over $300 million contributions. Now they are under fire, with allegations of misuse of those funds, including excessive spending on company retreats and parties. According to tax forms, the charity’s spending on conferences and meetings increased from $1.7 million in 2010 to $26 million in 2014, about the same amount that they spend on their top program, combat stress recovery.
A CBS News investigation recently looked into how the charity spends its contribution money. Their attention was caught by the comparison with Wounded Warrior’s donation spending compared to other respected charities. They spoke to 40 former employees who described the organization as having spending that is out of control.
One former employee described spending as “extremely extravagant,” with dinners and alcohol and meetings at fancy resorts. These employees say spending has skyrocketed since CEO Steven Nardizzi took over in 2009, many using the example of the 2014 annual meeting as an example. This meeting took place at the luxury Broadmore hotel in Colorado. Pictures and videos show Nardizzi rapelling down the side of the hotel during an all-expenses paid conference for employees.
That four-day conference for about 500 staff members cost $3 million.
According to Charity Navigator, most major veteran charities, such as Disabled American Veterans Charitable Service Trust and Fisher House spend over 90 percent of their budgets on the vets they exist to serve. Wounded Warriors spends only 60 percent.
Records on the Wounded Warriors own website shows that salaries for the top 12 employees are $2.7 million in total.
Army Staff Sergeant Erick Millette, who came home from Iraq in 2006 with a purple heart, a bronze star, a traumatic brain injury and PTSD, worked for the organization for two years. He says the public does not see how Wounded Warriors spends its money.
Stating that he is not speaking as a former disgruntled employee, Millette said that he witnessed lavish spending on staff, with dinners at fancy restaurants and meetings at lavish hotels. One former employee described the spending on alcohol and resorts as “what the military calls fraud waste and abuse.
Requests for interviews with Nardizzi by CBS News were denied, but they did allow their Director of Alumni, Captain Ryan Kules, to speak. Kules denied that there was excessive spending. He said that “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 gave the same answer when asked why conferences were not held at cheaper venues, saying it is to be sure they are aligned and can build as a team. He denied that $3 million was spent on the Colorado conference, and also said that the charity does not spend money on alcohol or excessive spending.
In a statement Wounded Warriors disputed the validity of the CBS News investigation, citing numerous factual errors and misrepresentations.