Charting the Sea of Goodwill

Charting the Sea of Goodwill MARCH 2, 2016 Phillip Carter, Senior Fellow

Veterans-Serving Non-Profits Project Supported By: CNAS Veterans Data Project Supported By:

Agenda Veterans Today and Tomorrow Charting the Sea of Goodwill Research Questions Methodology Findings Observations & Conclusions Discussion 3

4

Cohorts of War 5

Demographic Change

50 Largest County Veterans Populations (Absolute) 50 Densest County Veterans Populations (Per Capita)

Sea of Goodwill? There is, I am convinced, a sea of goodwill out in the country of people and places yearning to help. We need to tap into it Admiral Mike Mullen, 17 th Chairman of the Joint Chiefs of Staff, May 26, 2008 recent empirical evidence suggests that the sea of goodwill has already begun to wane. The need remains, however, for substantive, long-term efforts to assist veterans and their family members as they transition out of uniform and reintegrate into their civilian communities. Office of the Chairman of the Joint Chiefs of Staff, After the Sea of Goodwill: A Collective Approach to Veteran Reintegration, October 2014 8

Research Questions What is the legal and policy background for the sea of goodwill? What can the data tell us about giving and non-profit activity focused on the veterans and military community? Financial trends? Geographic location? Organizational type and focus? What are the implications of this data? 9

Methodology Queried of IRS Master Data File using the W30 NTEE code and some keyword searches Urban Institute: aggregate data (assets, revenue, organizational type, location by state/county) Guidestar: individual organizational data (name, address, assets, revenue, 990 data) Integrated, analyzed, and visualized data using Excel, Palantir and Tableau Interviews with stakeholders, thought leaders Working group discussions in spring, summer 10

Legal and Policy Background First major veterans groups emerge after Civil War VFW established after Span-Am War; American Legion and Disabled American Veterans established after WWI Veterans Bureau created in 1921; Veterans Administration established by EO in 1930 U.S. income and corporate tax system develops during early-to-mid 20 th Century Revenue Acts of 1913 and 1917 create tax exemptions for charitable organizations, individual tax deductions for charitable contributions Revenue Act of 1954 creates modern tax code, including Sec. 501(c) Congress adds 501(c)(19) for veterans organizations and auxillaries in 1972; notable for its treatment of political advocacy and revenue 11

501c Orgs 1976-2001 1976 1980 1990 2001 501(c)(3) charitable organizations 259,523 319,842 489,891 865,096 501(c)(4) associations 125,415 129,553 142,473 136,882 501(c)(19) - veteran organizations 13,960 22,247 27,462 35,265 All 501(c) organizations 756,537 843,324 1,022,166 1,399,397 12

Giving by Source, 1973-2013 (2013 Dollars, in Billions) 350 Total (billions of dollars, 2013 Constant) Corporations 300 250 Foundations Bequests Individuals 200 150 100 50 0 Source: GivingUSA 13

6,000,000,000,000 5,000,000,000,000 4,000,000,000,000 3,000,000,000,000 2,000,000,000,000 1,000,000,000,000 0 Total Non-Profit Organizational Assets (2015 Dollars) 2,500,000,000,000 2,000,000,000,000 1,500,000,000,000 1,000,000,000,000 500,000,000,000 0 Total Non-Profit Organizational Revenue (2015 Dollars) 14

W30 Non-Profit Organizations Assets and Revenue, 2001-2014 (Billions) $12.0 $11.0 $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 Total Assets, FY 2014 Constant Total Revenue, FY 2014 Constant $3.0 $2.0 $1.0 $0.0 15 Source: IRS 990 data, sorted by W30 NTEE code, as of 9/30/2014

16

% of Total U.S. Non-Profit Revenue Received by the W30 Sector 0.2 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 17

Billions VA Grants and Contracts (2008 to 2014) $2.5 $2.0 $1.5 VA Grants VA Contracts* $1.0 $0.5 $0.0 2008 2009 2010 2011 2012 2013 2014 Source: usaspending.gov; VA contracts include contracts to non-profit entities; grants include all VA grants 18

Source: IRS 990 data, sorted by W30 NTEE code, as of 9/30/2014 W30 Non-Profits by State W30 Non-Profits Per Vet W30 Non-Profits by Revenue Revenue Per Vet

The Sea of Goodwill: 42,250 W30 Non-Profits (Military & Veterans Organizations) 29,109 organizations with < $100k revenue 4,493 organizations with 2,858 orgs $100k-$500k $100k-$250k 307 organizations with $500k-1m 237 organizations With > $1m Source: GuideStar Database, IRS Form 990 data sorted by W30 NTEE code as of June 5, 2015. Does not count ~8,000 unreported organizations in Guidestar database.

Section of Code W30 Organizations By Type Description of Categories Revenue Assets Number of Orgs 501(c)(2) Title Holding Corporation for Exempt $105,364 $607,959 44 Organization 501(c)(3) Religious, Educational, Charitable, $1,020,945,474 $1,792,804,344 3035 Scientific, Literary, Testing for Public Safety, etc. 501(c)(4) Civic Leagues, Social Welfare $308,158,306 $795,543,968 5308 Organizations, and Local Associations of Employees 501(c)(5) Labor, Agricultural, and Horticultural $1,161,591 $928,207 10 Organizations 501(c)(6) Business Leagues, Chambers of $9,795,647 $7,938,847 12 Commerce, Real Estate Boards, Etc. 501(c)(7) Social and Recreational Clubs $35,836,902 $43,617,357 183 501(c)(8) 501(c)(19) Fraternal Beneficiary Societies and Associations Post or Organization of Past or Present Members of the Armed Forces $1,004,736 $1,428,736 39 $1,105,702,401 $2,704,730,874 33347 Other 57 $2,487,883,507 $5,355,170,470 42035 Source: Guidestar data for W30 organizations, queried 5 June 2015 21

Top 20 All W30 Nonprofits Org Name City State Zip Total Assets Total Income Total Expenses Navy Mutual Aid Association Arlington VA 22212 $2,779,441,493 $253,112,277 $223,023,690 Wounded Warrior Project Inc. Jacksonville FL 32256 $182,838,004 $234,682,943 $158,073,943 Disabled American Veterans Blackstone VA 23824 $468,759,320 $146,188,995 $143,424,447 Easter Seals Southern California, Inc. Santa Ana CA 92705 $31,339,762 $108,979,116 $106,672,210 Paralyzed Veterans of America Washington DC 20006 $62,926,538 $107,074,650 $101,671,644 VFW of the United States Kansas City MO 64111 $274,572,983 $92,050,664 $86,190,833 Operation Homefront, Inc San Antonio TX 78232 $49,332,752 $72,012,227 $48,747,280 Goodwill Industries of Orange County California Santa Ana CA 92703 $45,436,026 $69,656,657 $68,835,027 American Legion Indianapolis IN 46204 $101,960,979 $68,695,073 $68,292,175 Military Order of the Purple Heart Foundation Annandale VA 22003 $24,089,179 $32,092,318 $32,045,413 U.S. VETS Los Angeles CA 90017 $13,812,835 $30,791,848 $30,324,850 AMVETS Nat'l Service Foundation Lanham MD 20706 $25,186,554 $30,381,313 $16,963,758 West Virginia Medical Institute Inc Charleston WV 25304 $18,491,416 $26,750,387 $24,452,598 Veterans Medical Research Foundation of SD San Diego CA 92161 $10,847,285 $26,006,181 $25,959,583 VFW - Dept. of Tennessee McMinnville TN 37111 $22,681 $23,596,187 $252,273 MOAA Alexandria VA 22314 $126,239,417 $23,299,143 $26,255,815 Air Force Aid Society, Inf. Arlington VA 22202 $186,854,166 $22,168,412 $12,656,301 Injured Marine Semper Fi Fund Camp Pendleton CA 92055 $12,986,800 $21,240,494 $20,728,753 Independence Fund, Inc. Miami Beach FL 33141 $14,444,944 $19,315,353 $4,917,666 BST Senior Living West, Inc. San Antonio TX 78245 $169,539,868 $17,929,886 $17,803,534 22

Top 20 W30 501c3 Nonprofits Org Name City State Total Assets Total Income Total Expenses Wounded Warrior Project Inc. Jacksonville FL $182,838,004 $234,682,943 $158,073,943 Easter Seals Southern California, Inc. Santa Ana CA $31,339,762 $108,979,116 $106,672,210 Paralyzed Veterans of America, Inc. Washington DC $62,926,538 $107,074,650 $101,671,644 Operation Homefront, Inc San Antonio TX $49,332,752 $72,012,227 $48,747,280 Goodwill Industries of Orange County California Santa Ana CA $45,436,026 $69,656,657 $68,835,027 U.S. VETS Los Angeles CA $13,812,835 $30,791,848 $30,324,850 AMVETS Nat'l Service Foundation Lanham MD $25,186,554 $30,381,313 $16,963,758 West Virginia Medical Institute Inc Charleston WV $18,491,416 $26,750,387 $24,452,598 Veterans Medical Research Foundation of SD San Diego CA $10,847,285 $26,006,181 $25,959,583 Air Force Aid Society, Inf. Arlington VA $186,854,166 $22,168,412 $12,656,301 Injured Marine Semper Fi Fund Camp Pendleton CA $12,986,800 $21,240,494 $20,728,753 Independence Fund, Inc. Miami Beach FL $14,444,944 $19,315,353 $4,917,666 BST Senior Living West, Inc. San Antonio TX $169,539,868 $17,929,886 $17,803,534 Armed Services YMCA of the USA Springfield VA $19,613,874 $17,828,477 $15,281,406 Homes for Our Troops Taunton MA $30,618,033 $16,332,412 $21,335,410 Support Our Troops Inc Daytona Beach FL $791,264 $15,417,852 $17,543,822 Coalition to Support America's Heroes Leesburg VA $2,703,074 $15,399,316 $15,319,338 Army & Navy Academy Carlsbad CA $30,750,357 $13,514,841 $12,492,972 Swords to Ploughshares San Francisco CA $7,061,146 $12,126,645 $12,306,717 Sarasota Military Academy, Inc. Sarasota FL $13,025,074 $12,034,455 $8,011,960 23

A Sector in Transition 24

Observations Relatively flat asset and revenue trend lines for W30 organizations Slight peak in 2008; more recent decline Flat trends could reflect increasing efforts by non-w30 organizations to capture revenue relating to military and veterans philanthropy Warchesting of assets by non-profit organizations Uneven distribution of veterans and military non-profit organizations Not aligned with veterans population Not (necessarily) aligned with need A decrease in the number of organizations and near-steady investment indicate shifts in the organizational landscape. Role of U.S. Government spending Demographic change and giving 25

Issues for Discussion Divergence between need and capital Uncertain future for federal and philanthropic dollars Constant or increasing need in community Potential need for new models for access to capital Future of government and philanthropic funding Public-private partnerships New models for philanthropic funding Competition for increasingly scarce dollars How will this play out? Moving beyond basic geographic and financial data, what is the scorecard for success or impact? Can the sector better align dollars, need and impact? 26

27