The Wounded Warrior Project (WWP) is the largest veterans charity in the United States. John Melia, a Somalia-wounded Marine veteran initiated, [CT2] the WWP when he started giving backpacks to returning Iraq war veterans in 2003. The WWP incorporated on February 23, 2005, for the purposes of providing vital programs and services to severely wounded service members and veterans to support their transition to civilian life as well-adjusted citizens, both physically and mentally. Melia hired Steven Nardizzi as CEO. Under Nardizzis leadership, the organization experienced incredible financial growth, as total revenues (income) increased from $26.1 million in 2008 to $342 million in 2013. Assets (total value of everything they owned) reported on WWPs IRS 990 forms grew from $36 million in 2010 to $269 million in 2014.

In 2014, the organization reported $189 million in program services expenses including $42 million in program grants to other nonprofit organizations. The WWP claimed it supported 398 veterans and their caregivers, assisted 302 veterans in gaining employment, and coordinated four-day cycling opportunities, known as Soldier Rides, for an additional 156 veterans. Examples of the grants included $1 million for recreational activities, $300,000 for a parade, $50,000 for a monument, and $25,000 one nonprofit used to lobby and negotiate for postal rates for nonprofit organizations. $5.7 million was spent by WWP to produce the highly-visible Soldier Rides.

Criticism emerged in 2014 from veterans advocates and veterans themselves, stating the WWP is more concerned with image and public relations impact than it is the long-term well-being of veterans. The Independent Voter Project stated that for an entity generating such huge revenues, numbers like those seem curiously low. Another question was raised by just how some of the services that it (WWP) funded actually helped veterans recover from post-traumatic stress or rehabilitate from combat-related wounds. In December 2015, the WWPs National Alumni Director, Ryan Kules, described upcoming events for veterans across the United States to WWP staff members, which included family members receiving haircuts and spa services (Minnesota), 25 veterans and family members attending A Christmas Carol (Alaska), 35 veterans will spend an evening bowling (Colorado), 20 veterans participate in a holiday Lego club night (Hawaii), 100 veterans and guests attend a winter wonderland (California), and veterans attend a healthy holiday cooking class (Utah).

On March 9, 2016, after multiple news reports highlighted lavish spending, including extravagant parties and events, and cited dozens of former staff members describing a toxic leadership culture at the popular veterans charity the WWP board of directors terminated CEO Steve Nardizzi and Chief Operations Officer Al Giordano. Prior to the terminations, WWP vigorously defended itself against accusations of extravagant spending on staff conferences and events, spending too little on programs for veterans, and too much on fundraising. The board responded by issuing a statement claiming an independent audit found the organization spent 81% of donations on programming, but did not produce the audit for the public.

In May, 2016, U.S. Senator Charles Grassley (R-Iowa), chairman of the Senate Finance Committee, asked WWP to provide an account of spending not provided on IRS tax forms, including expenses for travel, meetings, public relations, lobbying, and the Charity Defense Council. The WWP is cooperating with Sen. Grassleys request. The ongoing investigation found among other things that:

-> 33% of program services claimed by the WWP was free media and advertising.

-> The transfer of $37.1 million to the Wounded Warrior Long-Term Support Trust (a Delaware nonprofit whose total net assets went from $9.1m at the beginning of 2013, to $37.5 million at the end) does not name any board members on the Form 990.

-> 94% of program services to veterans in 2013 and 2014 consisted of tickets to sporting events.

-> In 2014, of the $242 [CT3] WWP spent on program expenses, approximately $150 million was not devoted to veterans and a large portion of it was in-kind donations.

Answer the following in reference to the WWP case:

A) In this case, where did fault lie - with the staff, CEO, Board, funders, other individuals, with simple practices and procedures, or was it embedded in the very structure and set-up of the organization as a whole? Why?

B) What kind of dishonesty was present -- embezzlement, theft, diversion, nepotism, partiality, abuse of trust, lying, self-serving misspending, closed-eyes oversight, or just plain incompetence? Explain in terms of fiduciary responsibility.

C) At what stage in the story might intervention have saved things? Who should have caught things first?

D) Who or which group was ultimately responsible?

E) Who had the responsibility to see it didnt happen again, and was that fulfilled?

F) What other kinds of nonprofit organizations might be liable to suffer similar problems to those identified here?