Veterans' Charities Spending Addressed in Congress

Philip Rucker at the Washington Post (Jan 18, 2008, Chief of Veterans Charities Grilled on Groups' Spending) reports:

...At a raucous, three-hour hearing yesterday, House members questioned California entrepreneur Roger Chapin about his management of two charities. One charity, Help Hospitalized Veterans, spent hundreds of thousands of dollars in donations that were to help wounded soldiers on personal expenses for Chapin, executive director Mike Lynch and Richard A. Viguerie, to whom the charity has awarded millions of dollars in fundraising-consulting contracts, the hearing found.

The expenses included at least $340,000 in meals, hotels and entertainment; a $135,000 loan to Lynch for a divorce settlement with his former wife; a $17,000 country club membership; three airplane tickets to Hawaii; and a $1 million loan to Viguerie for a start-up initiative at his firm, several members of the committee
said....

...Rep. Henry A. Waxman (D-Calif.), chairman of the committee, said Help Hospitalized Veterans raised more than $168 million from 2004 to 2006. The charity spent a quarter of those donations on the veterans, with the rest going to direct-mail fundraising, salaries and other expenses, Waxman said....

...Rep. Christopher Shays (R-Conn.) asked Chapin what would happen if his charities told donors how their donations were spent.

"If we disclose, which I'm more than happy to do, we'd all be out of business," Chapin said. "Nobody would donate. It would dry up."...

...In one heated exchange yesterday, Rep. Elijah E. Cummings (D-Md.) questioned Chapin's compensation. In 2006, Chapin and his wife took home a combined $561,971 in salary, bonuses and pension contributions, the committee said.

"I've tried everything under the sun to lower our fundraising costs," Chapin said.

"How about reducing your salary?" Cummings said. "You appear to be doing quite well for yourself and your wife."

"By whose standards?" Chapin shouted back....