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EDITORIAL: GIVING TILL IT HURTS -- The New York Times
on unscrupulous veterans' charities: "This is a
disgrace that
threatens to make the notion of charity a
casualty of war."

Story here...
http://www.nytimes.com/2007/12/
25/opinion/25tue3.html?_r=1&ref=opinion&oref=slogin
Story below:
-------------------------
Editorial
Giving Till It Hurts
The public has rightly shown its empathy with wounded and troubled war
veterans, contributing hundreds of millions of dollars to private
charities that claim to have the veterans’ best interests at heart. A new
study details rampant abuses of the money flow.
Of 29 military charities vetted by the American Institute of Philanthropy,
a nonprofit watchdog group, only nine received passing grades in managing
resources. Eight offenders passed on less than a third of the donations to
those in need and one spent 99 percent of its take on overhead. Sullying
the meaning of charity, executives squander money on costly direct-mail
appeals, patriotism-tinged trinkets and bloated salaries.
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It is important to stress that the institute gave
high ratings to several veterans’ charities (
www.charitywatch.org ). But, as
a category, veterans’ charities were found to perform far worse than the
average of more than 500 charities studied in 36 categories.
Because there is so little regulation, for-profit fund-raising companies
can work with sympathetically named veterans charities and keep 80 percent
or more of donations. Dickens’s Fagan could only envy another dodgy
enterprise that saw $18 million in “charitable” phone cards distributed to
overseas military personnel last year — cards not to let soldiers call
home, but rather to call up a stateside business that sells sports scores.
Some legitimate charities hoard their donations. Even as homeless veterans
became a major national problem, the charities run under the auspices of
the military services spent only $59 million on assorted educational and
financial programs in 2005 while sitting on more than $600 million in
combined balances. Their eligibility requirements don’t easily accommodate
the homeless and clearly need to be revised.
There are no laws adequately tracking scurrilous performers, enforcing
accountability or limiting the amounts charities can waste on overhead as
they enjoy tax exemptions. Congress had better act quickly to come up with
an effective remedy before the trust of a generous public becomes buried
in cynicism.
The 12 veterans’ charities rated as the worst failures collected more than
$260 million last year while keeping at least double the recommended 35
percent for overhead — that as the flood of needy veterans continues to
grow. This is a disgrace that threatens to make the notion of charity a
casualty of war.
-------------------------
Larry Scott --
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