Where Does $100 to Disabled American Veterans (DAV) Go (2019)?
The Disabled American Veterans (DAV) organization is a 501 (c) (4) – a social welfare organization – that was created by Congress in 1920 to assist disabled military veterans and their families. Based in Cold Spring, Kentucky, DAV provides services nationwide to disabled veterans through staff, national service offices and more than 1,300 local chapters.
With more than a million members (who pay $0-$300 for a lifetime of assistance and benefits), DAV is the largest disabled veteran assistance organization in the country. In 2019, DAV reported total revenue of $145 million (compared to $151 million the prior year) although only $7 million (about 5% of revenue) came from membership fees. $122 million (85% of revenue) came from contributions. $15 million (10% of revenue) came from investment income and the gain on the sale of assets while $1 million came from royalties and other sources.
Expenses totaled $142 million (not including $2 million in depreciation) in 2019 with expenses categorized as follows:
- $60 million (41% of revenue): Office-Related Expenses
- $55 million (38% of revenue): Compensation
- $ 9 million (6% of revenue): Advertising, Promotion, and Royalties
- $ 8 million (6% of revenue): Fees for Services (primarily other with no detail provided)
- $ 6 million (4% of revenue): Grants
- $ 4 million (3% of revenue): Travel and Conferences
As illustrated above, the two largest expenses (that used 79% of revenue) were office-related expenses and compensation. $9 million or 6% of revenue was spent primarily on advertising and promotion while $8 million was spent on fees for services with no detail provided. $6 million in grants were awarded – primarily to veterans services in state governments and camps for children of veterans. $4 million was spent on travel and conferences. DAV reported paying for first class or charter travel, travel for companions, and providing discretionary spending accounts (See the Form 990, Schedule J, Part III, Supplemental Information for more detail).
Using the above information, every $100 in revenue was spent as follows:
-$ 41: Office-Related Expenses
-$ 38: Compensation
-$ 6: Advertising, Promotion, Royalties
-$ 6: Fees for Services
-$ 3: Travel and Conferences
-$ 94: Subtotal: Office, Compensation, Advertising, Fees, Travel
$ 6: Revenue Remaining
-$ 4: Grants
$ 2: Revenue Remaining: To General Fund
As illustrated above, most revenue is spent on office-related expenses and compensation for the 712 employees, who received an average compensation of $77,000 each. 47 employees received more than $100,000 in compensation with the most highly compensated employee reported to be J Marc Burgess, the National Adjutant, CEO, and Secretary who received $585,906 in compensation in 2019.
At year-end 2019, DAV reported total net assets of $365 million, compared to $313 million at the beginning of the year. This $52 million dollar increase is primarily due to unrealized gains on investments.
To read the IRS Form 990 (2019), click here.