Non-profit accounting

As I’ve watched coverage of the Wounded Warrior Project financial statements in recent months, I have been surprised by the shallowness of the coverage. Minor issues draw heavy focus while major issues remain unaddressed.

Majoring on the minors

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I’ve noticed a number of articles lately that dive deeper into the WWP issues that the first round of coverage. These articles are discussing substance.

4/24 – Wounded Warrior Project – Statement by interim COO Charlie Fletcher – Interim COO promised to continue mission to serve wounded warriors and make the changes need to move organization forward.

5/4 – Florida Times Union at jacksonvile.com – First Coast News: Wounded Warrior Project executive resigns – The WWP Chief Programs Officer resigned, citing personal reasons.

Article gives no more detail.

The webpage listing the executive staff shows the CPO position as second of nineteen. My paraphrase is this looks like a strategic planning position with additional emphasis on managing and directing programs. His most recent experience was in development. He is a ’93 West Point grad.

Following article gives some speculation of what might be behind the resignation.

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Seems like the coverage of the WWP financial situation is slowing down. A few interesting articles for your consideration:

4/9 – David Bauerlein at Florida Times-Union – Ousted Wounded Warrior Project executives defend in their leadership of Jacksonville-based charity – This is the original article that generated the AP story I mentioned earlier. The Times-Union article is far better.

Note to the public relations, financial, and executive leadership of charities: pay attention to this article. The reporter not only understands joint cost allocation rules, he can explain the issues. Check out the section of the report titled How much really goes to veterans?

Perhaps it is just a function that I don’t get out very much, but I have noticed over the last couple of years that there are several reporters around the country who have a solid understanding of nonprofit accounting. There are quite a few reporters who are skilled at reading a 990. Keep that in mind as you interact with media.

More clearly than I have read anywhere else, this article explains Mr. Nardizzi’s regrets.  He wishes the 2014 conference had not been held at the Broadmoor. It doesn’t matter that WWP got discounts on room rates, food, and meeting space. He also wishes he had not rappelled down the side of the building.

Both of those things have given an impression the organization is wasteful.

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Stephen Nardizzi and Al Giordano are talking to a variety of media outlets. They are defending the organization and their work. We hearing their side of the story.

Here are a few articles of interest in the last week or so. One odd tidbit is the major report received as part of the board’s investigation was provided in oral form only – the AP article says the board says there was no written report.

Another surprising tidbit – In the Chronicle of Philanthropy interview, Mr. Nardizzi indicates he was told not to speak to the media when the story broke.

One more observation after reading these articles – none of the following reports address the issue of whether WWP does or does not have a broken corporate culture.

4/10 – AP – 2 ousted executives defend work at Wounded Warrior Project – Mr. Nardizzi has repeated his comments on the things he regrets. Previous comments were not clear to me. In this article he is quoted as saying in a different interview that wishes the conference drawing so much attention has been located somewhere other than a luxury hotel. He also wishes he had not rappelled down the side of the building.

Those things allowed others (read that as media) to misrepresent the organization. His regret is allowing things to happen which would be  misrepresented.

His previous comments were confusing to me.

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