The Wounded Warrior Project is one of the biggest veterans organizations in the country. In 2016, the organization was rocked by allegations of lavish spending that resulted in the firing of two top executives– CEO Steven Nardizzi and COO Al Giordano. The termination was part of the embattled organization’s attempts to do some much-needed damage control to restore its credibility amidst growing speculation that not all of the donations were going to projects that support veterans.
Allegations of Excess
The allegations surrounding the Wounded Warrior Project Scandal stemmed from criticism on spending. Reports alleged that the organization spent more than $800 million of donated money in four years, and most of it didn’t go to veterans. An investigation by CBS News revealed that Nardizzi’s administration spent excessively large amounts on meetings and travel. This was supported by a report from non-profit watchdog Charity Navigator which revealed that the organization only spent 60% of its budget on veterans.
Insider reports reveal stories of frequent air travel on premium plane tickets, lavish, catered parties, meetings at expensive, fancy restaurants and stays at posh hotels during team buildings. All these reportedly caused the organization’s spending to balloon from $1.7 million in 2010 to a whopping $26 million in 2014.
Insiders say that the change in spending practices started when Nardizzi took the helm in 2009. In one 4-day conference held in a luxury Colorado resort, 500 staff members attended which reportedly cost the organization $3 million.
In April 2017, news outlets were able to access the organization’s Form 990 for 2015-2016 which revealed that as donations to the organization dropped off by $70 million, the organization cut its grant to $35 million from $87 million. However, the salaries of the organization’s executives rose up in the same period, climbing over $6 million in 2015-2016. When Nardizzi was fired in 2016, his listed salary for 2016 reflected a $100,000 increase from the previous year. In May 2017, a report released by the US Senate criticized the organization’s misuse of funds and inaccurate advertising.
The revelations prompted the removal of its top executives, with the new administration vowing to trim down expenses by making serious changes to travel policies and procedures, improving accountability and transparency, among others. Leaders and employees also need to follow stricter policies on expense account spending. According to new policies, perks like complimentary snacks and drinks on events and meetings are out.
The organization remains under strict scrutiny. However, with new policies in place, Wounded Warrior is confident that it can restore the trust of the donating public for the benefit of the veterans that it serves.