Scrutiny Of Veterans Charities Continues

Veteran Clifford Perry receives an arts and crafts kit from Mia Leber at a Chicago hospital as part of Help Hospitalized Veterans' efforts. The California-based nonprofit charity reported $71.3 million in donations in the past fiscal year. (Courtesy Of Help Hospitalized Veterans)

But Help Hospitalized Veterans spends 31 percent of its funds on charitable causes, said Daniel Borochoff, president of the American Institute of Philanthropy. The institute recommends that charities spend at least 60 percent of their funds on charitable programs.

"They're raising tens of millions of dollars for the craft kits, which is a nice treat for the veterans, but there's a tsunami of need out there, and giving them a craft kit is not helping them that much," Borochoff said.

Some recipients of Help Hospitalized Veterans' direct-mail solicitations said they were surprised by the frequency and heft of the mailings.

"Those guys are relentless," said James Lynch, a veteran from Merced, Calif. "These guys seem to hit me from twice a year to every four months. Anytime they're spending money on postage and things like that, I wonder what the return is on it."

High overhead costs can be expected for start-up charities, Rep. Thomas M. Davis III (R-Va.) said in an interview. But he said it is important to determine whether some veterans charities have been "a serial swindler in terms of taking people's money and not spending it."

Help Hospitalized Veterans paid Chapin $426,434 in salary and benefits in the past fiscal year, The Post's review of a tax filing showed. His wife, Elizabeth, received $113,623 in salary and benefits as "newsletter editor," the filing shows.

In the filing, the charity reports that the Chapins each worked 40 hours per week. In a separate tax filing, the Coalition to Salute America's Heroes reported that Roger Chapin worked another 40 hours per week for his job there but did not collect pay.

Mike Lynch, executive director of Help Hospitalized Veterans, said the charity's board considers Chapin's wages "proper compensation."

"He's a dynamo," said Thomas Palma, the coalition's general manager. "You might find it hard to believe, but we do an awful lot of good things as a result of his efforts and his ideas."

Some donors to Chapin's charities said they were disappointed to discover his high compensation.

"I just got irritated as hell," said Michael J. Feeko Sr., 77, a Korean War veteran who lives in Port Crane, N.Y., and volunteers with veterans groups. "The part that galls me is the fact that he'll sit back and draw this money and other people are giving their time."

Help Hospitalized Veterans has spent some of its donations in the real estate market. The charity purchased a condominium unit in Fairfax County in May 2006 for $444,600, according to property records reviewed by The Post. Chapin said the charity purchased the Falls Church apartment because of his frequent travel to Washington.