Rep. Henry A. Waxman Holds a Hearing On Assessing Veterans' Charities

(CORRECTED COPY: ADDS REP. FILNER TO SPEAKERS LIST)

HOUSE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOLDS A HEARING ON ASSESSING VETERANS' CHARITIES

DECEMBER 13, 2007

REP. HENRY A. WAXMAN, D-CALIF. CHAIRMAN REP. TOM LANTOS, D-CALIF. REP. EDOLPHUS TOWNS, D-N.Y. REP. PAUL E. KANJORSKI, D-PA. REP. CAROLYN B. MALONEY, D-N.Y. REP. ELIJAH E. CUMMINGS, D-MD. REP. DENNIS J. KUCINICH, D-OHIO REP. DANNY K. DAVIS, D-ILL. REP. WILLIAM LACY CLAY, D-MO. REP. DIANE WATSON, D-CALIF. REP. STEPHEN F. LYNCH, D-MASS. REP. CHRIS VAN HOLLEN, D-MD. REP. BRIAN HIGGINS, D-N.Y. DEL. ELEANOR HOLMES NORTON, D-D.C. REP. PAUL W. HODES, D-N.H. REP. CHRISTOPHER S. MURPHY, D-CONN. REP. BRUCE BRALEY, D-IOWA REP. PETER WELCH, D-VT. REP. JOHN YARMUTH, D-KY. REP. BETTY MCCOLLUM, D-MINN. REP. JIM COOPER, D-TENN. REP. JOHN SARBANES, D-MD. REP. JOHN F. TIERNEY, D-MASS.

REP. THOMAS M. DAVIS III, R-VA. RANKING MEMBER REP. DAN BURTON, R-IND. REP. CHRISTOPHER SHAYS, R-CONN. REP. JOHN M. MCHUGH, R-N.Y. REP. JOHN L. MICA, R-FLA. REP. MARK SOUDER, R-IND. REP. TODD R. PLATTS, R-PA. REP. CHRIS CANNON, R-UTAH REP. JOHN J. "JIMMY" DUNCAN JR., R-TENN. REP. MICHAEL R. TURNER, R-OHIO REP. DARRELL ISSA, R-CALIF. REP. KENNY MARCHANT, R-TEXAS REP. LYNN WESTMORELAND, R-GA. REP. PATRICK T. MCHENRY, R-N.C. REP. VIRGINIA FOXX, R-N.C. REP. BRIAN P. BILBRAY, R-CALIF. REP. BILL SALI, R-IDAHO REP. JIM JORDAN, R-OHIO

REP. BOB FILNER, D-CALIF.

WITNESSES: SEN. CHARLES E. GRASSLEY, R-IOWA

ED EDMUNDSON, FATHER OF A WOUNDED VETERAN

BONNIE CARROLL, EXECUTIVE DIRECTOR, TRAGEDY ASSISTANCE PROGRAM FOR SURVIVORS

TRACY L. MCCURDY, DIRECTOR, PENNSYLVANIA BUREAU OF CHARITABLE ORGANIZATIONS

DANIEL BOROCHOFF, PRESIDENT, AMERICAN INSTITUTE OF PHILANTHROPY BENNETT WEINER, CHIEF OPERATING OFFICER, BETTER BUSINESS BUREAU

ROBERT M. FRIEND, PRESIDENT, AMERICAN VETERANS COALITION

PAMELA L. SEMAN, EXECUTIVE DIRECTOR, DISABLED VETERANS ASSOCIATION

ROGER CHAPIN, PRESIDENT, HELP HOSPITALIZED VETERANS, INC. AND COALITION TO SUPPORT AMERICA'S HEROES FOUNDATION

[*] WAXMAN: The committee will please come to order. This morning's hearing is about deceit and a sickening betrayal of our most fundamental values, and I hope it's the first step in fixing an intolerable fraud.

I think many Americans are beginning to understand the incredible sacrifice our troops are making in Iraq and in Afghanistan. Over 4,000 American soldiers have been killed; thousands more are coming home with terrible physical and psychological injuries.

But few of us understand that these deaths and injuries often leave families with crippling financial burdens. We assume that government will provide the services, the benefit and support that our soldiers earn through their selfless sacrifice. Too often, that's an illusion, not a reality.

Many charities are trying to provide the missing support, and this is the time of year when families receive all kinds of charitable solicitations in the mail, over the phone, and from people knocking on our doors, and nothing is more compelling than a charity dedicated to helping our troops and our veterans.

Many of these groups do heroic work. We are fortunate that one of these groups, TAPS, is with us today, and I want to encourage the American people to be generous in supporting these charities. But our committee has learned that disturbing number of groups are raising millions of dollars in the name of helping veterans but keeping most of the donations for themselves.

Instead of using the money to provide financial assistance or help veterans obtain care, these groups and the professional fundraisers they employ blatantly line their own pockets. They betray their donors and the troops, who desperately need help.

In some cases, these organizations spend as much as 90 percent of the donations they receive on fundraising activities rather than helping veterans. In some cases, the executives pay themselves over $500,000 a year. And in some cases, they jump from state to state, trying to stay one step ahead of state regulators.

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