{"id":2450,"date":"2015-12-07T18:30:13","date_gmt":"2015-12-07T23:30:13","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/wounded-warrior-project-not-quite-the-hero-we-expect\/"},"modified":"2015-12-07T18:30:13","modified_gmt":"2015-12-07T23:30:13","slug":"wounded-warrior-project-not-quite-the-hero-we-expect","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/wounded-warrior-project-not-quite-the-hero-we-expect\/","title":{"rendered":"Wounded Warrior Project: Not quite the hero we expect?"},"content":{"rendered":"

Wounded Warrior Project (WWP), a nonprofit that aims to \u201chelp injured servicemen and women aid and assist each other and provide unique, direct programs and services to meet their needs,\u201d[1]<\/a> is one of the most recognizable nonprofits in the post-9\/11 era. \u00a0One could arguably draw the conclusion based on the organization\u2019s visibility, assets, and expenses that it is the leader of nonprofits\u00a0that treat wounded warriors\u2019 needs, but a closer examination indicates that it lags in its ability to blend its business and operating models and is in fact ineffective.<\/p>\n

WWP explicitly states that its mission is to \u201chonor and empower Wounded Warriors\u201d: its business model is based on creating value for wounded warriors from post-9\/11 conflicts who have returned and have unmet needs[2]<\/a>.\u00a0 The organization boasts of 20 current assistance programs, and claims it will have supported 100,000 veterans and provided access to\u00a0$96,000,000 in benefit entitlements (from the government, not WWP) by 2017, as seen in exhibit 1<\/strong>.<\/p>\n

 <\/p>\n

\"Achievements\"<\/a><\/p>\n

 <\/p>\n

As the stewards of the contributions to WWP, the organization\u2019s\u00a0leaders and\u00a0their operating model should allow for the allocation of a sizeable amount of the annual contributions to directly help wounded warriors.\u00a0 A closer examination, however, suggests that less than 50% of the yearly expenses, and less than 37% of the annual contributions are actually used to directly support warriors through interactive programs and support.<\/p>\n

The operating model indicates a potential misallocation of funds to accomplish its mission\u00a0and suggests the organization is in fact an extremely successful marketing firm that spends an exorbitant amount of money on marketing, consulting and other services, and salaries.\u00a0 This is contrary to the business model of the organization.\u00a0 As seen from the current financials (reported at the end of FY14), WWP received total revenue and support of $410,552,126 (exhibit 3<\/strong>).\u00a0 Its expenses for the period were $300,279,616, reinvesting $115,018,259 to build a treasure trove of assets to \u201chopefully\u201d be used at a later date to support its charitable donors\u2019 intended recipients.\u00a0 Exhibit 2<\/strong> shows the claimed support given to each charitable program.<\/p>\n

Of the $300,279,616 in expenses for the year, $70,449,206 was spent on media advertisements, $56,002,808 on \u201cconsulting and outside services,\u201d and $40,218,114 on compensation (exhibit 4)<\/strong>.\u00a0 Add $23,121,267 in postage and shipment, and $17,760,065 in direct mailings, and WWP has already spent $157,151,460 (more than 50% of total expenses attributed to non-material benefits for veterans).\u00a0 WWP also cites $43,563,958 in fundraising expenses, indicating that well less than half of the expenses are being spent to provide \u201cdirect\u201d program support for wounded warriors.\u00a0 These numbers are staggering given the intention of the philanthropists who donate, hoping to support warriors in need of assistance.<\/p>\n

 <\/p>\n

\"Support\"<\/a><\/p>\n

 <\/p>\n

If ones took a more optimistic approach to investigating the operating model of WWP, one could argue that its extensive marketing, mailings, and fundraising efforts have allowed WWP to sustain a competitive advantage by being one of the most prevalent nonprofits in the veteran space.\u00a0 One could also argue that the treasure trove that the firm has created could be used for future veterans and will grow in order to increase the number of programs in the future.\u00a0 Alas, with two conflicts having ended or having seen a significant reduction in troops, a more special operations\/air support heavy campaign in the immediate future utilizing less troops, and casualty numbers significantly reduced over the past few years, chances are the number of wounded warriors will not skyrocket in the immediate future.<\/p>\n

On a final note, the aim of the organization is inherently good, and its mission meets the criteria of what this nation\u2019s wounded warriors need \u2013 support, assistance, and a chance for sustainability in the future – but its operating model does not match its mission.\u00a0 While Charity Watch (a website intended to educate philanthropists) rates WWP with three out of four stars, one must be diligent in understanding that while its transparency and governance receive four stars, its finances receive two[3]<\/a>.\u00a0 A word to the wise: investigate the direct contributions of your charities to their intended recipients before donating.<\/p>\n

 <\/p>\n

\"Financials<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

\"Financials<\/a><\/p>\n

 <\/p>\n

[1]<\/a> \u201cTo Honor and Empower Wounded Warriors.\u201d Wounded Warrior Project – Mission<\/em>. Wounded Warrior Project, 2015. Web. 7 December, 2015. <http:\/\/www.woundedwarriorproject.org\/mission.aspx>.<\/p>\n

[2]<\/a> \u201cTo Honor and Empower Wounded Warriors.\u201d Wounded Warrior Project – Mission<\/em>. Wounded Warrior Project, 2015. Web. 7 December, 2015. <http:\/\/www.woundedwarriorproject.org\/mission.aspx>.<\/p>\n

[3]<\/a> \u201cCharity Navigator Rating \u2013 Wounded Warrior Project.\u201d Charity Navigator<\/em>. Charity Navigator, 2015. Web. 7 December, 2015. <http:\/\/www.charitynavigator.org\/index.cfm?bay=search.summary&orgid=12842#.VmX-UIpdEog>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Wounded Warrior Project – charitable organization or successful marketing firm?<\/p>\n","protected":false},"author":1042,"featured_media":2451,"comment_status":"open","ping_status":"closed","template":"","categories":[281,399,168,135,244],"class_list":["post-2450","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-authenticity","category-category-offense","category-marketing","category-military","category-non-profit"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\nWounded Warrior Project: Not quite the hero we expect? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/wounded-warrior-project-not-quite-the-hero-we-expect\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wounded Warrior Project: Not quite the hero we expect? 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