When it comes to charitable contributions, few causes resonate as profoundly with Americans as supporting our veterans. The proof is in the numbers: There are roughly 45,000 charities in the veterans support space. Yet, despite this shared sense of duty, the landscape of veterans’ charities is often marred by inefficiencies and, in some instances, deceit. Many organizations claim to advocate for veterans but fail to provide the crucial support our servicemen and women need and deserve.
Enter Charities for Vets.
Founded in early 2022 by veterans advocate Rick Berman, through the RAM Veterans Foundation and the Mercer Family Foundation, Charities for Vets was born out of a pressing need to illuminate the financial mismanagement pervasive in many veterans’ charities. The organization’s mission is clear-cut: offer transparent, unbiased ratings of these charities, empowering donors to make informed decisions and ensuring their contributions genuinely reach those in need.
A Personal Motivation
Berman was driven to establish the group after witnessing an emotional television appeal for donations to support veterans.
“I realized there might be deceptive over-promising and under-delivering of services for veterans,” he recalls. “A quick review of financials and ratings from existing private agencies like Charity Navigator confirmed my suspicion that too much donated money wasn’t being managed properly.”
This revelation sparked a conversation with his friend and donor, Rebekah Mercer, who concurred that greater transparency within large veterans’ groups was necessary.
“The Mercer Family Foundation supports organizations striving to improve society tangibly. Instead of supporting another veteran group where we have limited influence, the RAM Foundation was conceived from a desire to be directly involved in executing a mission that holds personal significance,” Mercer shares.
The RAM Foundation was established in memory of Robert Alexander Mercer, who perished in November 1944 while liberating Nazi-occupied France during World War II.
Rigorous Evaluation
What distinguishes Charities for Vets is its rigorous evaluation process. The organization takes a firm stand on financial transparency, evaluating charities based on criteria such as overhead expenses, asset reserves, fundraising efficiencies, and IRS reporting of joint cost accounting. Unlike other rating agencies that may average scores, Charities for Vets insists on excellence across all areas before granting a recommendation.
“We categorize charities as ‘Highly Recommended,’ ‘Recommended,’ or ‘Not Recommended,’ and we’re transparent about how each score is arrived at,” explains Berman. This robust methodology ensures donors can trust that their contributions are being utilized effectively, free from misleading claims by organizations with concealed inefficiencies.
A significant concern in charity evaluation is the reliance on financial data, which can sometimes yield incomplete results. Charities for Vets acknowledges this limitation and plans to extend its evaluation criteria beyond financial efficiency to include program effectiveness by 2025. Unlike large rating agencies that lack the capacity for deep analysis, Charities for Vets aims to incorporate a comprehensive measure of a charity’s impact.
Charities for Vets also gauges success through growing public awareness and engagement. The organization’s advertising efforts have reached millions, effectively positioning itself as a “consumer report” for veterans’ charities. This visibility has led to a significant shift in donor behavior, with funding increasingly aligned with the organization’s recommendations.
“Our success is measured by our ability to advertise our available ratings. Our goal is to achieve public awareness akin to a free ‘consumer report for veterans’ charities,'” says Berman.
Mercer emphasizes the critical need for oversight in charitable giving. “There is a shocking lack of oversight that allows for mismanagement … our goal is to ensure that donations reach their intended recipients,” she says.
“Ideally, we would like to see maximum effective and efficient use of donations in the veteran space, to the ultimate benefit of the veterans and their families. To achieve this, it is necessary for donors to become more aware of how their money is being used and to actively start funneling their donations to the organizations that are best meeting donor intent,” she adds.
Berman underscores the ways that Charities for Vets is distinct from Charity Navigator. Charities for Vets focuses exclusively on a select 102 veteran charities with annual revenues exceeding $2 million. In contrast, Charity Navigator evaluates over 200,000 charities of various types.
“Despite the vast number of charities that Charity Navigator rates, its relatively small staff cannot conduct the in-depth analysis that Charities for Vets prides itself on. This depth is achieved through a stricter grading methodology,” Berman says.
For questions about the Roundtable’s work related to veteran issues or to learn more about Charities for Vets, please contact Philanthropy Roundtable Portfolio Director Clarice Smith.
