BBB Wise Giving Report for
Paralyzed Veterans of America

BBB Wise Giving Report issued June 2011
BBB Wise Giving Report expires May 2012


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Paralyzed Veterans of America
Address: 801 18th Street NW
  Washington, DC 20006
Phone: 800-424-8200
800-555-9140
Web Address: www.pva.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1946, Delaware
Affiliates: PVA Research Foundation, PVA Education and Training Foundation, PVA Outdoor Heritage Recreation Fund, and 34 chapters
Stated Purpose: "to preserve the great and basic truths and enduring principles on which this nation was founded; to form a national association for the benefit of individuals who have suffered injuries or diseases of the spinal cord; to acquaint the public with the needs and problems of paraplegics; to promote medical research in the several fields connected with injuries and diseases of the spinal cord, including research in neurosurgery and orthopedics and in genitourinary and other orthopedic appliances; and to advocate and foster complete effective reconditioning programs for paraplegics, including a thorough physical reconditioning program, physiotherapy, competent walking instructions, adequate guidance (both vocational and educational), academic and vocational education (both in hospitals and in educational institutions), psychological orientation and readjustment to family and friends, and occupational therapy (both functional and diversional)."

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Evaluation Conclusions

               

Paralyzed Veterans of America (PVA) does not meet the following Standard for Charity Accountability.

Standard 13: Accuracy of Expenses in Financial Statements - Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

PVA does not meet this Standard because in the Alliance's opinion, the 2010 audit report does not provide an accurate presentation of PVA's fund raising and program service expenses.

PVA provided a copy of its audited financial statements for the fiscal year ended September 30, 2010, which included an auditor's opinion that the statements were prepared in accordance with Generally Accepted Accounting Principles (GAAP).  According to the audited financial statements, PVA incurred joint costs of $64,247,301 for informational materials and activities that include fund raising expenses.  Of this amount, $30,469,048  was allocated to program service expenses, $28,942,960 was allocated to fund raising expenses, and $4,835,293 was allocated to administrative expenses. 

Based on an evaluation of sample PVA appeals, the BBB Wise Giving Alliance disagrees with the allocation of $28,942,960 of direct mail appeals to the program service category.  The Alliance is of the opinion that the contents of the direct mail appeals do not substantiate 45% of the cost of direct mail appeals to program service expenses.  A significant portion of the content of the appeals could be considered fund raising, as it explains why one should donate to PVA rather than fulfilling a programmatic or administrative function.

Depending on how one recognizes PVA's direct mail expenses, its fund raising costs could be higher than the 23% of related contributions that was reported by PVA and its program services could be lower than 71% of total expenses also reported by PVA.  Since the Alliance disagrees with PVA's joint cost allocations, we are unable to determine whether the organization meets Standards 8 and 9, which address fundraising and program expenses.
In response to this finding, PVA stated that:

"The Paralyzed Veterans of America (PVA) offers the following statement in response to the finding made by the BBB Wise Giving Alliance that our organization does not currently meet Standard 13 and that BBB is unable to determine whether PVA meets related Standards 8 and 9 due to the disagreement on the joint cost allocations:

"PVA considers the BBB Wise Giving Alliance to be the preeminent non-governmental organization in our industry dedicated to promoting best-practices, transparency and accountability for nonprofit organizations operating in our country. While PVA is in full compliance with the law and accounting standards in this matter http://www.pva.org/site/PageServer?pagename=about_finance_pva, notwithstanding the finding regarding Standard 13, we are committed to working with the BBB Wise Giving Alliance over the next several months to again meet all 20 Standards for Charity Accountability promulgated by the BBB Wise Giving Alliance."


Paralyzed Veterans of America (PVA) meets the remaining 17 Standards for Charity Accountability.
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Programs

               

PVA aims to address the needs of its members and all veterans with spinal cord dysfunction (SCD). Through its network of National Service Offices, the PVA Veterans Benefits Department represents veterans nationwide and in Puerto Rico. PVA’s attorneys represent veterans at the U.S. Court of Appeals for the Federal Circuit, the U.S. Court of Appeals for Veterans Claims, and other appellate courts regarding veterans' benefits claims. PVA also operates the PVA Research Foundation, a private source of funding for neuroscientific research that supports clinical research for new treatment programs. The PVA Education Foundation offers ongoing training for health professionals who provide care for those with SCD. PVA sponsors several sporting events for wheelchair athletes. PVA also publishes a monthly magazine, "PN/Paraplegia News" and a sports magazine "Sports 'n Spokes." Some ($28,942,960 or 40%) of PVA's public education program is conducted in conjunction with informational materials that include fund raising appeals. In addition, a portion ($4,835,293 or 54%) of PVA's general and administrative costs are also conducted in conjunction with these fund raising appeals.

For the fiscal year ended September 30, 2010, PVA's program expenses were:

  
Public education 71,887,373
Veterans and disability services 20,705,881
Chapter and community outreach 7,363,418
Research, consumer and professional education 3,499,781
Sports and recreation 2,785,127
Advocacy 2,764,612
Total Program Expenses: $109,006,192
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Governance

               

Chief Executive : Gene A. Crayton, President
Compensation*:
 $82,374

Highest Paid Executive: John R. Ring, CFO
Compensation*: $252,903

Chair of the Board: Gene A. Crayton
Chair's Profession / Business Affiliation: President, Paralyzed Veterans of America

Board Size: 34

Paid Staff Size: 276

*October 1, 2009 - September 30, 2010 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

               

Method(s) Used:

Direct mail, special events, radio, Internet appeals, planned giving, cause-related marketing, and membership appeals.
Fund raising costs were 23% of related contributions. (Related contributions, which totaled $150,409,398, are donations received as a result of fund raising activities.)
PVA incurred joint costs of $64,247,301 for informational materials and activities that included fund raising materials. Of those costs $30,469,048 was allocated to fund raising expenses, $28,942,960 was allocated to program expenses, and $4,835,293 was allocated to administrative expenses.
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Tax Status

               

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

               

The following information is based on PVA's audited (consolidated with affiliates) financial statements for the year ended September 30, 2010.

Source of Funds  
Public contributions 102,869,444
Contributed services 41,694,335
Legacies and bequests 5,845,619
Investment income, net 4,268,126
Other income 1,185,367
PVA publications 427,260
Total Income $156,290,151


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Uses of Funds as a % of Total Expenses

Programs: 71%  Fund Raising: 23%  Administrative: 6% 

Total income   $156,290,151
  Program expenses $109,006,192
  Fund raising expenses 35,250,129
  Administrative expenses 8,975,453
 
Total expenses   $153,231,774
Income in Excess of Expenses   3,058,377
Beginning net assets   34,313,384
Ending net assets   37,371,761
Total liabilities   23,612,743
Total assets   $60,984,504


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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.

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