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Cox Washington Bureau investigates veterans charities

The stack of fundraising letters grows every week in Butch Kelly's home. Kelly said he is on a fixed income but he gives when and what he can. When he first got a letter from Disabled Veterans National Foundation, he sent a check.

"You see disabled veterans and think wow, these people are doing good works," said Kelly, a veteran from Florida.

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Disabled Veterans National Foundation's website is slick and there are videos and testimonials of work to help vets. However, when you look at the organization's tax filings, out of every dollar donated, less than a quarter is actually going to programs that support veterans.

"They're basically taking money away from needy veterans," said Daniel Borochoff, of Charity Watch, a non-profit group that gives Disabled Veterans National Foundation an "F" rating. Another watchdog, Charity Navigator, gives it a "0" out of "4" stars.

"They should be embarrassed and ashamed of themselves," said Kelly.

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The majority of the 27-million dollars DVNF raised in 2016, went to fundraising.  More than a month ago we reached out asking to talk with them about their finances, but they have repeatedly refused our requests for an interview. They did send up a letter. It talks about the military record of Purple Heart winning CEO Joseph Vanfonda who has been, "working to revamp the organization's operations, programs, staff and fundraising practices." The letter said, "DVNF is committed to transparency and accountability."

Vanfonda has refused to talk to us and for Charity Watch, the proof is in the numbers.

"You're really helping the telemarketer more than you're helping the veterans," said Borochoff.

Our investigation found that Disabled Veterans National Foundation is not alone. We also looked at the Veterans Support Foundation. Here too, less than a quarter of every dollar goes to veterans. The President of Veterans Support Foundation, Keith King, said his organization provides housing for veterans in need.

"We're proud of what we do once we have the money in the house, how we take care of that money, what we do with that money," said King. "I think that is as important if not more important than what it costs me to raise that money in the first place."

King also told us that money problems forced his charity to turn to telemarketers that now get half of every dollar that he raises.

"We had gotten to the to a point to where we were looking seriously to simply shut our doors," King said.

That is what Charity Watch said should happen.

"They should go out of operation," said Borochoff. "They're just siphoning money out of the giving pool."

Experts said money can be raised efficiently. Look at the National Military Family Association for example. Out of every dollar donated, 80 cents goes to programs.

"It's important to ask the question, how much of my dollar is going to support the people you say you serve?" said Joyce Raezer, of the National Military Family Association.

That is why Butch Kelly now said he has a particular file to place the mail that keeps coming from Disabled Veterans National Foundation.

"I just put it in the shredder," Kelly said.

Disabled Veterans National Foundation did in the past few days, send us a letter from their attorney and an advance copy of a press release they plan on issuing tonight after our story airs, announcing tremendous progress in effectiveness, governance and transparency. You can read the letter in the word document attached to this story.

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