VETSPAC

 

MISSION STATEMENT

The Mission of Vetspac is to assess and measure the value provided by Veteran Service Organizations and Military Associations so that Veterans and Donors can make informed choices as to which, if any, Veterans organization to join or contribute.

 

Hundreds of millions of dollars flow annually to largely-unaccountable Veteran Organizations and Associations with the expectation that needy Veterans will benefit. To encourage growth, these organizations often obtain non-profit status under the US Tax Code; and some are Chartered by Congress and/or Recognized by the Department of Veterans Affairs for Claim Representation.  

 

Unfortunately, in recent years it has become clear that many Associations are of little benefit to Veterans; funds are spent inefficiently and few dollars are available to either address Veteran needs or provide real assistance. Bloated staffs, inefficient practices, high over-head, and out-sized salaries of often-ineffective management are some of the reasons few benefits flow through to Veterans. To add insult to injury,  the IRS non-profit status of these organizations shields them from state and federal taxes which means taxpayers across the 50 states subsidize their existence by paying higher taxes to offset those foregone from these ‘non-profits.’

 

This unfortunate state of affairs is well-documented and been the subject of recent Congressional inquiry although little has changed as a result.

 

Vetspac believes reform of this self-serving sector is long overdue.

 

PURPOSE of VETSPAC

To this end, Vetspac believes placing sunshine on the management and financial structure, fund-raising costs, overhead, payroll, and other expenses of these organizations will act as a break on these excesses, encourage the setting of high standards through the adoption of ‘best practices,’ provide a reference point for legislative reform, and – establish “value to the Veteran” as a primary focus across the industry.

 

ASSESSMENT METHODOLOGY

Veterans organization file annual reports with the US Internal Revenue Service. Since these documents are in the public domain, Vetspac plans to obtain reports on each organizations, conduct a series of assessments using standard analytic  techniques, and rate Veteran Service Organizations and Military Associations across a six dimension metric:

 

·         Financial Management

·         Fund Raising

·         Use of Funds

·         Accountability & Transparency

·         Strength of Management

·         Mapping Goals to Outcomes

 

BENCHMARKING

This Vetspac rating system will set benchmarks of performance and efficiency across the industry and allow Veterans and Donors, for the first time, to see how much assistance actually gets to the Veteran. This will provide a much-needed basis for Veterans and Donors to determine which, if any, Veteran organization and/or association to join and support.

 

The Vetspac methodology also benchmarks Veteran Service Organizations and Military Associations providing a mechanism to measure their performance relative to others and forming a basis for internal reform.

 

 

References

American Institute of Philanthropy Report
Association Spending Article

New IRS reform rules in 2008