How Revenue is Spent at Paralyzed Veterans of America (2024)

The Paralyzed Veterans of America (PVA) is a non-profit, tax-exempt 501 (c) 3 based in Washington, DC (although the organization has 73 offices and 34 chapters throughout the country). Established in 1947, PVA has a core mission of vets serving vets, funding spinal cord research, and advocating for disability rights, according to their website. So, the question most donors want to know is:  How much of my donation goes to the organization’s core mission?  The answer:  about 57% in 2024 with 35% spent on a marketing, publications, and advertising (note: PVA spent $92 for every $100 in revenue received in 2024).

Key financial information reported by PVA to the IRS on the Form 990 (for the year ending June 30, 2024) include the following:

$86 million in total revenue was reported (compared to $89 million in 2023, $127 million in 2022, $107 million in 2021, $98 million in 2020 and $92 million in 2019), most of which ($77 million) came from contributions, gifts, and grants. (note:  the $38 million decline in revenue from 2022-2023 was due to a decrease in contributions, gifts, and grants).

Expenses totaled $79 million (92% of revenue) and were categorized as follows

• $27 million (31% of revenue):  Compensation
• $18 million (21% of revenue):  Marketing
• $ 8 million (9% of revenue):  Publications
• $ 7 million (8% of revenue):  Grants
• $ 5 million (6% of revenue):  Office-Related Expenses
• $ 5 million (6% of revenue):  Fees for Services
• $ 4 million (5% of revenue):  Advertising
• $ 3 million (4% of revenue):  Travel and Conferences
• $ 2 million (2% of revenue):  Other Expenses

It is noteworthy to know:

PVA relies heavily on a company called Edge Direct, of Baltimore, MD for a mail/gift program and Marketeam..  In 2024, Edge Direct received $15 million in compensation for this program while Markeeam received $11 million for a total of $26 million.  Yet, the Form 990, Part IX, Statement of Functional Expenses does not list the “mail/gift program” as the organization has done in previous years. It is unclear where the $26 million in fees paid to these two companies are categorized above as they should be listed as “Fees for Services”.  However, the $26 million in fees paid to Edge Direct and Marketeam are listed as fees to outside vendors on the Form 990, Part VII, Section B, Independent Contractors. PVA somehow breaks the $26 million to these two companies down into other unexplained categories although total fundraising costs are reported to be $22 million on the Form 990, Part IX, Statement of Functional Expenses (which also appears to be incorrect0. To complicate this matter further, the Form 990, Schedule G, Part I reports that Marketeam raised nearly $46 million for the organization but was paid $468,000; and Edge Direct is not even listed.  So, there appears to be discrepancies.

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

$100:  Revenue

-$ 21:  Marketing

-$  9:  Publications

-$  5:  Advertising

-$ 35:  Subtotal:  Marketing, Publications, and Advertising

 $ 65:  Revenue Remaining

-$ 31: Compensation

-$  6:  Fees for Services

-$  2:  Other Expenses

-$  4:  Travel and Conferences

-$  6:  Office-Related Expenses

-$ 49:  Subtotal: Compensation, Fees, Office, Travel and Conferences, and Other

 $  16:  Excess Revenue

-$  8:  Grants

 $   8:  Excess Expenses

As illustrated above, the largest expenses for PVA is  compensation and marketing which appears to be part of the “Mail Program” which is the primary way the organization raises funds. So, right off the top, in 2024, Marketeam and Edge Direct (independent contractors) received $26 million in compensation although these expenses are reported differently on the Form 990 (see above for an explanation of the reporting discrepancies).

Compensation was for the 267 employees who received $27 million, or an average compensation of $101,000.  45 employees received more than $100,000 in compensation with the most highly compensated employee, Stephen Miller, a Director until Aug 2023 who received $298,153, in compensation.

The Form 990, Statement of Functional Expenses reports $5 million was spent on fees for services provided by non-employees and most of these fees ($3.5 million) are described as “other” with no further detail provided.  However, it is important to note the Form 990, Part VII, Section B Independent Contractors reports 67 independent contractors received more than $100,000 in compensation including:

• $15 million:  Edge Direct, of Baltimore, MD for mail/gift program
• $11 million:  Marketeam, of Atlanta, GA for mail/gift program
• $ 2 million:  Moore A Series, LLC of Lanham, MD for data management
• $ 1 million:  First Degree, LLC, of Lanham, MD for marketing solutions
• $ 1  million:  Aegis Processing Solutions, of Topeka, KS for mail/gift program

So, 67 independent contractors received more than $100,000.  Five of those 67 contractors received $30 million, primarily for the mail/gift program for fundraising, which means 62 independent contractors received at least $6.2 million (if they all received just $100,000),, which means at least $36 million was spent on fees to independent contractors – and, not $5 million.

$5 million was spent on office-related expenses while $7 million (or $8 out of every $100 in revenue)  was spent on grants (38 grants greater than $5,000 – same as last year). Most grants were awarded to local chapters of PVA for sport or chapter grants.  Of the grants listed on the Form 990,   Schedule I, about $1.4 of the $7 million in grants were awarded for research.

PVA spent 92% of the revenue received in 2024 (or about $8 million less than they raised) which was added to the general fund.  In addition, PVA reported $8 million in unrecognized gains on investments.  Net assets were $117 million at year-end (compared to $101 million at the beginning of the year).

The bottom line is that PVA is paying a lot of money to raise money.  PVA reported $46 million in gross receipts (53% of total revenue) from direct mail activity from Marketeam and paid Marketeam $11 million (although Schedule G, Part I reports Marketeam was paid less than $500,000).  It is unclear what Edge Direct raised through direct mail but Edge Direct did receive $15 million.

The financial information on the Form 990 (2023 for the year ending June 30, 2024) shows that $57 of every $100 in revenue received – and that’s assuming every expense except “marketing,”  “publications” and advertising are considered an expense that helped vets help vets, was allocated to spinal cord research ($1.4 million), and supported the advocacy of disabled veterans, went to directly helping the vets.  $35 out of every $100 was spent on marketing while $8 out of every $100 was added to the general fund.  Commendable is executive compensation which is very conservative.

To read the IRS Form 990 (2023 for the year ending June 30, 2024), click here.