Where Does $100 to Disabled American Veterans (DAV) Go (2023)?

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 2023, DAV reported total revenue of $176 million (compared to $147 million in 2022, $171 million in 2021, $154 million in 2020 and $145 million in 2019) although only $4 million (about 2% of revenue; compared to $4 million in 2022, $4 million in 2021, and $9 million in 2020) came from membership fees.  $136 million (77% of revenue) came from contributions. $35 million (20% of revenue) came from investment income and the gain on the sale of assets.

Expenses totaled $147 million (not including $3 million in depreciation) in 2023 with expenses categorized as follows:

• $50 million (28% of revenue): Compensation
• $53 million (30% of revenue): Office-Related Expenses
• $14 million (8% of revenue): Advertising, Promotion, and Royalties
• $10 million (6% of revenue): Fees for Services (primarily fundraising and other with no detail provided)
• $ 8 million (5% of revenue): Grants
• $ 5 million (3% of revenue): Travel and Conferences and Other Expenses
• $ 7 million (4% of revenue):  Other Expenses

As illustrated above, the two largest expenses (that used 58% of revenue) were compensation and office-related expenses. $14 million or 8% of revenue was spent primarily on advertising and promotion while $8 million was spent on grants – primarily to veterans services in state governments and camps for children of veterans. $10 million was spent on fees for independent contractors – primarily other “professional” marketing and fundraising fees, and $5 million was spent on travel and conferences and other expenses.

DAV reported the organization pays for first class or charter travel, travel for companions, and provides 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:

$100: Revenue

-$ 30 : Office-Related Expenses

-$ 28 : Compensation

-$  8 : Advertising, Promotion, Royalties

-$  6 : Fees for Services

-$  4:  Other Expenses

-$  3 : Travel and Conferences

-$ 79 : Subtotal: Office, Compensation, Advertising, Fees, Travel

  $ 21  : Revenue Remaining

-$   5: Grants

 $ 16: Revenue Remaining

As illustrated above, most revenue is spent on office-related expenses and compensation for the 681 employees who received an average compensation of $73,000 in 2023 (compared to an average compensation of $83,000 in 2022 and $80,000 in 2021).  69 employees received more than $100,000 in compensation with the most highly compensated employee reported to be Edward R Reese, the Executive Director who received $585,465 in 2023.  $16 out of every $100 or $29 million was allocated to the general fund in 2023.

At year-end 2023, DAV reported total net assets of $474 million (compared to $421 million in 2022, $499 million in 2021, $415 million in 2020, $365 million in 2019 and $313 million in 2018).  The previous decline in net assets was primarily due to $90 million of unrealized net losses on investments in 2022.  The improvement in 2023 was due to allocating unspent revenue ($29 million) and $28 million in unrealized gains on investments.

To read the IRS Form 990 (2023), click here.