Where Does $100 to Paws For Purple Hearts Go (2018)?

Paws for Purple Hearts (PPH)  is a non-profit, tax-exempt (501) (c) (3) that teaches veterans to train service dogs for their fellow veterans with combat-related injuries. The Form 990 (2018) submitted to the IRS indicates PPH raised $5.2 million in 2018 (which is about $400,000 less than in 2017)  most of which came from contributions, gifts and grants.

Expenses totaled $5.6 million and were categorized as follows:

• $2.0 million (39% of revenue):  Postage, Shipping, Printing, Publications, Mailing Lists, Advertising
• $1.3 million (25% of revenue):  Compensation
• $ .9 million (17% of revenue):  Fees for Services: Program Srvcs and Contract Srvcs
• $ .4 million (8% of revenue):  Fees for Services: Fundraising and Mgmnt
• $ .4 million (8% of revenue):  Office-related Expenses
• $ .6 million (11% of revenue):  Other Expenses (bank fees, furn/equip, supplies, travel, licensing)

As illustrated above, $2.4 million was spent on postage, shipping, printing, publications, mailing lists, advertising, and fees for professional fundraising and management services.  An additional $900,000 is listed as fees for services (professional fees paid for programs and contract services) which appears to be fees paid to Bergin University of Canine Studies for service dogs and trainers (note:  the organization’s website states all service dogs and trainers are provided by Bergin).

Compensation of $1.3 million was provided to 18 employees, which equates to an average compensation of $72,200.  No employees received more than $100,000 in compensation.  However, it is important to note that although the CEO, Bonita Bergin did not receive compensation from PPH, fees and licensing fees appear to have been paid to Bergin University of Canine Studies, an organization Bergin appears to be affiliated with.  Most staff appear to be allocated to the delivery of program services (although Bergin supplies the service dogs and trainers) but staff are also engaged in fundraising and management.

PFPP spent $400,000 more than they raised. These excess expenses were covered by funds in the general fund which had a $2.1 million balance at the beginning of the year and a $1.7 million balance at the end of the year.

Using the above information, $100 in revenue was spent as follows:

$100:  Revenue

-$ 39:  Postage, Shipping, Printing, Publications, Mailing Lists, Advertising

-$  8:  Fees for Services – Fees for Services: Fundraising and Management

-$  8:  Office-related Expenses

-$ 55: Subtotal PPMAL, Fees for Svcs and Office Expenses

  $ 45:  Revenue Remaining

-$ 25:  Compensation

-$ 17:  Fees for Services – Program Services and Contract Services

-$  11:  Other Expenses (bank fees, furniture, equipment, supplies, travel, dep)

-$ 53:  Subtotal Compensation, Fees for Services, and Other

-$   8:  Excess Expenses

As illustrated above, $55 out of every $100 in revenue was spent on postage, shipping, printing, mailing lists, advertising, fees for professional fundraising and management, and office-related expenses. $42 out of every $100 was spent on staff compensation and fees for services for programs and contract services (what these specific expenses are is not revealed).  Other Expenses – bank fees, furniture and equipment (why these are expensed is not clear), supplies, travel, licenses, and taxes – account for $11 out of every $100 and could arguably be included in office-related expenses.

Based on the information above, the bottom line is that PPH appears to be spending a lot of money to obtain revenue: nearly 40% of revenue was spent on postage, shipping, printing, publications, mailing lists and advertising while  $42 out of every $100 was spent on compensating all staff and fees for outside services related to program services and contract services. An additional $8 out of every $100 was spent on fees for services for fundraising and management.

To read the IRS Form 990 (2018), click here.