It is reported that 17% of all Navy and 30% of all Marine Corps personnel live in San Diego County, including families with more than 60,000 military connected children. It has also been reported more than 220,000 veterans live in the region, including 48,000 Post 9/11 Iraq and Afghanistan vets -- the nation’s largest concentration.

When necessary, many of these individuals and families turn to nonprofit sector charities for assistance when the Department of Defense, Veterans Administration, or other government agencies do not or cannot meet their needs.

Needs that may be pressing and time critical, such as eviction or foreclosure. Or less pressing needs, such as just putting food on the table until the next payday. Or it could be a one time financial crisis, like paying for unexpected car repairs. Some the problems may be of more long-term significance, such as chronic homelessness, long-term unemployment, substance abuse/addiction, or mental health care.

According to figures provided by 2-1-1 San Diego, in FY 14-15 and FY 15-16 (through February 2016), 10,878 military clients contacted them. The top category (44%) in FY 14-15 was for basic needs (food, housing/shelter, material good, transportation, and utilities). Housing and shelter alone accounted for 28% of these.

Charity Navigator, a national charity “watchdog” organization, observes that there are roughly 40,000 veteran and military charities nationwide. In 2015, the University of San Diego’s Caster Family Center for Nonprofit and Philanthropic Research compiled a list of nearly 130 national, regional, and locally represented organizations supporting active duty military personnel in the San Diego region. For the charities specifically established to support the military, family, and/or veteran populations there are distinct challenges.

First is generating revenue (fundraising). The Caster Family Center’s director, Dr. Mary Jo Schuman says of the San Diego region, “it is always a challenge, because there is limited funding.” There are “not as many foundations [locally] as in other regions such as San Francisco or Los Angeles. And there are also limitations with revenue sources (i.e., government, private donors, events, fee for service).”

The October 2015 report Threads: Insights from the Charitable Community by Independent Sector stated, “Numerous comments focused on shortcomings of the current funding models, including challenges many organizations face in obtaining adequate funds and unintended consequences (such as competition among nonprofits) precipitated by current funding practices.”

In this competitive environment, education and reputation are crucial. Local charity leader Sandy Lehmkuhler, founder and president of Warrior Foundation-Freedom Station, said, “Our ability to raise funds is also directly linked to our ability to educate the community, which is a massive undertaking in itself. People cannot contribute to a cause that they do not understand.” Regarding reputation, Carolyn Blashek the founder of Operation Gratitude, said, “I would say the most significant challenge we face today as a Military Support charity is the shadow cast on all of us in the field due to the inappropriate conduct of a very few.”   

With donor education and charity reputation so crucial, many potential and current donors rely upon so-called “watchdog” organizations to evaluate the competing charities, though the practices and actions of these watchdogs are not always viewed favorably. Speaking specifically of Charity Navigator, one local military related charity CEO said, “These are like gauntlets. They take away spirit. They take away man-hours. They take away energy. And they take away dollars. They take it away from the client. They attempt to take a very complex formula and represent it with stars.”

When asked about this, Ms. Sandra Miniutti, Vice President of Marketing and Chief Financial Officer of Charity Navigator, said there are a “fair amount of really inefficient charities working in that space.” About the rating system, Miniutti said, “I think our rating system is very fair and very transparent. It is designed to be objective. Analysts on [the] team can’t have personal opinions impact the charity ratings in any way,” she said. “The beauty of the system is that it is objective, it is numbers driven.”

If it is not one of the watchdog organizations, charities also have to contend with the negative impact of government actions on their reputations. Tony Teravainen, Navy veteran and CEO of Support the Enlisted Project (STEP), related a significant problem encountered when the IRS delayed the all-important 501(c)(3) certification and approval. Right at the peak of the crucial fundraising season, Charity watchdog Guidestar placed a huge red flag next to STEP, because the IRS had not included the charity on the list of approved organizations.

Once informed, Teravainen called the IRS, reportedly speaking directly with the specific lady responsible for this function. After explaining the situation and its impact, the lady was reported as responding, “Oh, my fault.” Apparently she fixed it immediately, explaining the flag would not be removed until the next update was published six-to-eight weeks later. Teravainen was able to work with Guidestar to mitigate the matter, but it was obvious the experience left a rather sour taste .

In addition to dealing with the IRS and watchdog organizations, Teravainen highlighted fundraising is a constant struggle when the donor public is the more removed it has ever been from the military and veteran communities; not surprising, since less than one-half of one percent of the nation currently serves in the military, an all time low. Working on fundraising with individuals bereft of personal military experience contributes to the charities encountering invalid assumptions about military life. For example, some believe every military family is provided “free” military housing. The uniqueness of military and veteran life is all too unfamiliar to all too many people, making traditional fundraising a constant challenge. 

But what about charities not involved in traditional fundraising, like the Veterans Village of San Diego (VVSD)? According to VVSD CEO and Army veteran Phil Landis, their organization receives approximately 88% of its revenue from government -- primarily federal government -- grants. The challenge is the dramatic impact of unintended consequences from evolving changes in the Veterans Administration Grant and Per Diem Program.

For decades VVSD satisfactorily utilized VA approved grants for veterans transitional housing to fund the residential component of its nationally recognized residential treatment program. VVSD then finds whatever additional funding is necessary. According to Landis, a previous director of the VA Grant office described the program as the “gold standard”. Since 2009, a developing change at the VA threatens this success and the very existence of the VVSD resident treatment program.   

Landis reports the VA is working with Housing and Urban Development (HUD) to provide HUD – VA Supportive Housing vouchers to homeless veterans. The VA now directs a “low barrier” housing first approach, meaning any qualifying homeless vet can obtain the vouchers. Landis said, “Housing first works really, really well for lots of vets.” But it overlooks veterans dealing with alcohol and substance abuse, trauma, and incarceration. Unlike the VVSD residential treatment program requirements that the vet cease alcohol or drug use, not be quarrelsome, comply with program requirements, and get a job, the HUD-VASH Program levies no such requirements.

This evolving policy change threatens the funding of this VVSD program. According to Landis, the VA is telling them they must transform their agency, by saying, “we know what’s best for you,” instead of empowering the people closest to the problem to address it in what makes best sense for the local situation. For Landis, this “means we either find a solution to the funding that would be denied for this purpose or it (the residential treatment program) goes away.”

The necessity for charities to help in time of need shows no sign of diminishing for active duty military, military family, and veteran populations. As the charities connect with and assist these populations, they face the ongoing challenge of securing revenue, whether through traditional fundraising or government grants, as well as contending with negative impacts of the watchdog organizations and government agencies. Among others, Lehmkuhler, Blashek, Landis, and Teravainen understand all too well.