Mission: The mission of the Purple Heart Foundation is "To holistically enhance the quality of life of all veterans and their families, providing them with direct service and ... (More)
Purple Heart Foundation is a 501(c)(3) organization, with an IRS ruling year of 1994, and donations are tax-deductible.
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Contact Information
https://purpleheartfoundation.org/
7008 Little River Turnpike
P.O. Box 49
Annandale VA 22003
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Star Rating System by Charity Navigator
Charity Navigator evaluates a nonprofit organization’s financial health including measures of stability, efficiency and sustainability. We also track accountability and transparency policies to ensure the good governance and integrity of the organization.
Exceptionally Poor
This charity's score is 29.06, earning it a 0-Star rating. Charity Navigator believes donors can "Give with Confidence" to charities with 3- and 4-Star ratings.
This score is calculated from two sub-scores:
Finance: 0.00 View details
Accountability & Transparency: 92.00 View details
This score represents Form 990 data from 2020, the latest year published by the IRS.
View this organization’s historical ratings.
Star Rated Report
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Program Expense Ratio
18.1%
The Program Expense Ratio is determined by Program Expenses divided by Total Expense (average of most recent three 990s).
This measure reflects the percent of its total expenses a charity spends on the programs and services it exists to deliver. Dividing a charity's average program expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.
Source: IRS Form 990
Administrative Expenses
5.0%
As reported by charities on their IRS Form 990, this measure reflects what percent of its total budget a charity spends on overhead, administrative staff and associated costs, and organizational meetings. Dividing a charity's average administrative expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.
Source: IRS Form 990
Fundraising Expenses
76.7%
This measure reflects what a charity spends to raise money. Fundraising expenses can include campaign printing, publicity, mailing, and staffing and costs incurred in soliciting donations, memberships, and grants. Dividing a charity's average fundraising expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.
Source: IRS Form 990
Liabilities to Assets Ratio
148.2%
The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990).
Part of our goal in rating the financial performance of charities is to help donors assess the financial capacity and sustainability of a charity. As do organizations in other sectors, charities must be mindful of their management of total liabilites in relation to their total assets. This ratio is an indicator of an organization’s solvency and or long term sustainability. Dividing a charity's total liabilities by its total assets yields this percentage.
Source: IRS Form 990
Fundraising Efficiency
$0.76
The amount spent to raise $1 in charitable contributions. To calculate a charity's fundraising efficiency, we divide its average fundraising expenses by the average total contributions it receives. We calculate the charity's average expenses and average contributions over its three most recent fiscal years.
Source: IRS Form 990
Working Capital Ratio
-0.04 years
Determines how long a charity could sustain its level of spending using its net available assets, or working capital, as reported on its most recently filed Form 990. We include in a charity's working capital unrestricted and temporarily restricted net assets, and exclude permanently restricted net assets. Dividing these net available assets in the most recent year by a charity's average total expenses, yields the working capital ratio. We calculate the charity's average total expenses over its three most recent fiscal years.
Source: IRS Form 990
Program Expense Growth
-44.72%
We compute the average annual growth of program expenses using the following formula: [(Yn/Y0)(1/n)]-1, where Y0 is a charity's program expenses in the first year of the interval analyzed, Yn is the charity's program expenses in the most recent year, and n is the interval of years passed between Y0 and Yn.
Source: IRS Form 990
Governance
Charity Navigator looks to confirm on the Form 990 that the organization has these governance practices in place.
Sources Include: IRS Form 990
| Governance: | |
|---|---|
| Independent Voting Board Members ... (More) | |
| No Material Diversion of Assets ... (More) A diversion of assets – any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft – can seriously call into question a charity's financial integrity. We check the charity's last two Forms 990 to see if the charity has reported any diversion of assets. If the charity does report a diversion, then we check to see if it complied with the Form 990 instructions by describing what happened and its corrective action. This metric will be assigned to one of the following categories:
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| Audited Financials Prepared by Independent Accountant ... (More) Audited financial statements provide important information about financial accountability and accuracy. They should be prepared by an independent accountant with oversight from an audit committee. (It is not necessary that the audit committee be a separate committee. Often at smaller charities, it falls within the responsibilities of the finance committee or the executive committee.) The committee provides an important oversight layer between the management of the organization, which is responsible for the financial information reported, and the independent accountant, who reviews the financials and issues an opinion based on its findings. We check the charity's Form 990 reporting to see if it meets this criteria.
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| Does Not Provide Loan(s) to or Receive Loan(s) From Related Parties ... (More) | |
| Documents Board Meeting Minutes ... (More) | |
| Distributes 990 to Board Before Filing ... (More) | |
| Compensates Board ... (More) |
Policies
Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization has these policies in place.
Sources Include: IRS Form 990 and organization's website
| Policies: | |
|---|---|
| Conflict of Interest ... (More) | |
| Whistleblower ... (More) | |
| Records Retention and Destruction ... (More) | |
| CEO Compensation Process ... (More) | |
| Donor Privacy ... (More) Donors can be reluctant to contribute to a charity when their name, address, or other basic information may become part of donor lists that are exchanged or sold, resulting in an influx of charitable solicitations from other organizations. Our analysts check the charity's website to see if the organization has a donor privacy policy in place and what it does and does not cover. Privacy policies are assigned to one of the following categories:
The privacy policy must be specific to donor information. A general website policy which references "visitor" or "user" personal information will not suffice. A policy that refers to donor information collected on the website is also not sufficient as the policy must be comprehensive and applicable to both online and offline donors. The existence of a privacy policy of any type does not prohibit the charity itself from contacting the donor for informational, educational, or solicitation purposes. (Less) |
Transparency
Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization makes this information easily accessible.
Sources Include: IRS Form 990 and organization's website
| Transparency: | |
|---|---|
| CEO Salary Listed on 990 ... (More) | |
| Board of Directors Listed on Website ... (More) | |
| Key Staff Listed on Website ... (More) | |
| Audited Financial Statements on Website ... (More) | |
| Form 990 Available on Website ... (More) |
Additional Information
Unscored
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Total Revenue and Expenses
This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.
Salary of Key Persons
Presented here are this organizations key compensated staff members as identified by our analysts. This compensation data includes salary, cash bonuses and expense accounts and is displayed exactly how it is reported to the IRS. The amounts do not include nontaxable benefits, deferred compensation, or other amounts not reported on Form W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting
Stephen L. Ruckman, Chief Executive Officer
$185,000 (0.90% of Total Expenses)
Current CEO and Board Chair can be found in the Leadership & Adaptability report below.
Source: IRS Form 990 (page 7), filing year 2021
Business Master File Data
Below are some key data points from the Exempt Organization IRS Business Master File (BMF) for this organization. Learn more about the BMF on the IRS website
Activities:
Veterans activities (BMF activity code: 907)
Fundraising (BMF activity code: 927)
Gifts, grants, or loans to other organizations (BMF activity code: 602)
Foundation Status:
Organization which receives a substantial part of its support from a governmental unit or the general public 170(b)(1)(A)(vi) (BMF foundation code: 15)
Affiliation:
Independent - the organization is an independent organization or an independent auxiliary (i.e., not affiliated with a National, Regional, or Geographic grouping of organizations). (BMF affiliation code: 3)
Data Sources: IRS Forms 990
The Form 990 is a document that nonprofit organizations file with the IRS annually. We leverage finance and accountability data from it to form Encompass ratings. Click here to view this organization's Forms 990 on the IRS website (if any are available).
Pandemic Response
Due to the unprecedented nature of the pandemic, we give charities such as this one the opportunity to share the story of COVID's impact on them. Charities may submit their own pandemic responses through their nonprofit portal.
Purple Heart Foundation reported being impacted by COVID-19 in the following ways:
Program Delivery
Fundraising Capacity
Revenue
Staffing
Administrative Capacity
Grants Received
Grants Sent
Balance Sheet
How COVID-19 impacted the organization's operations financially:
During the pandemic, all of our thrift operations were ordered to close for several months. This resulted in zero income for those months. With the decline in donations, we did take advantage of the PPP program. We were fortunate that we were able to maintain our staffing levels.
How COVID-19 impacted the organization's delivery of programs:
With many veterans and their spouses losing their jobs and suffering financial hardship, our requests for assistance have dramatically increased over the last 18-24 months.
How this organization adapted to changing conditions caused by COVID-19:
The pandemic caused a significant number of veterans to face financial hardship. As the requests for assistance grew, our Board of Directors and leadership team reorganized our programmatic budget to accommodate this increasing need in the veteran community through the creation and funding of a Critical Assistance Grant Program.
Innovations the organization intends to continue permanently after the pandemic:
The number of veterans suffering financially continues to increase, so our Critical Assistance grants for veterans in need will continue to be a focal point of fundraising and public relations. With the war in Ukraine, we now expect to see increased need for PTSD programs.
Historical Ratings
| Date Published | Form 990 FYE | Overall Score | Overall Rating |
| Rating Version: 2.1 | |||
| 3/1/2022 | 2020 | 29.06 | |
| 4/1/2021 | 2019 | 28.86 | |
| 12/1/2020 | 2019 | 28.59 | |
This organization received multiple star ratings within this fiscal year, due to an update to its Accountability and Transparency data and/or the receipt of an amended Form 990. | |||
| 7/1/2019 | 2018 | 28.59 | |
| 12/1/2018 | 2017 | 28.59 | |
| 6/1/2017 | 2016 | 27.59 | |
Previous: Finance & Accountability / Next: Leadership & Adaptability
Impact & Results
This score estimates the actual impact a nonprofit has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact.
Impact & Results Score
Not Currently Scored
Purple Heart Foundation cannot currently be evaluated by our Encompass Rating Impact & Results methodology because either (A) it is eligible, but we have not yet received data; (B) we have not yet developed an algorithm to estimate its programmatic impact; (C) its programs are not direct services; or (D) it is not heavily reliant on contributions from individual donors.
Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.
Do you work at Purple Heart Foundation? Join the waitlist for an updated Impact & Results score.
Additional Information
Unscored
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Largest Programs
Purple Heart Foundation reported its three largest programs on its FY 2020 Form 990 as:
$1,053,838
Spent in most recent FY
70%
Percent of program expenses
Veteran Service Grants
$450,398
Spent in most recent FY
29%
Percent of program expenses
Veteran Service Program
$135
Spent in most recent FY
0%
Percent of program expenses
Public Awareness
Previous: Impact & Results / Next: Culture & Community
Leadership & Adaptability
This score provides an assessment of the organization's leadership capacity, strategic thinking and planning, and ability to innovate or respond to changes in constituent demand/need or other relevant social and economic conditions to achieve the organization's mission.
Leadership & Adaptability Score
100
out of 100
The score earned by Purple Heart Foundation is a passing score. This score has no effect on the organization's Star Rating.
Encompass Rating V4 provides an evaluation of the organization's Leadership & Adaptability through the nonprofit organization submitting a survey response directly to Charity Navigator.
Leadership & Adaptability Report
100
of 100 points
Mission
The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission
THE MISSION OF THE PURPLE HEART FOUNDATION IS TO HOLISTICALLY ENHANCE THE QUALITY OF LIFE OF ALL VETERANS AND THEIR FAMILIES, PROVIDING THEM WITH DIRECT SERVICE AND FOSTERING AN ENVIRONMENT OF COMRADERY AND GOODWILL AMONG COMBAT WOUNDED VETERANS.
Source: Nonprofit submitted responses
Vision
The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.
Our vision is to provide programs and services to help ease the transition from the battlefield to the Homefront for veterans nationwide.
Source: Nonprofit submitted responses
Strategic Goals
The nonprofit organization presents evidence of strategic thinking and goal setting through sharing their most important strategic goals.
Goal One: To enhance the quality of life of Purple Heart and other honorably discharged veterans and their families.
Goal Type: This goal reflects our commitment to further our advocacy work for our organization and or cause area.
Goal Two: To raise funds to support programs that will have a measurable and lasting beneficial effect in the lives of our nation’s veterans and their families.
Goal Type: Grow, expand, scale or increase access to the existing programs and services.
Goal Three: To fund and incubate new programs and services, identifying those with breakthrough results for veterans and their families.
Goal Type: New program(s) based on observed changes in needs among our constituencies/communities served.
Source: Nonprofit submitted responses
Leadership Development
The nonprofit provides evidence of investment in leadership development
Describe an investment in leadership
For several years, the Purple Heart Foundation has sponsored and helped organize a nationally televised discussion called the Wounded Warrior Experience. The forum brings together veterans from all walks of life who have experienced combat related wounds, and provides for an open discussion with leaders and students from the four military academies, as well as other veterans and the general public. The discussion centers around the challenges faced, the obstacles that have been overcome, and the opportunities that presented themselves to combat wounded veterans. The Foundation also provides scholarships to help educate the next generation of our nation’s leaders.
Source: Nonprofit submitted responses
Mobilizing for Mission
The nonprofit provides evidence of leadership through focusing externally and mobilizing resources for the mission.
This organization mobilizes for mission in the following ways:
Strategic Partnerships
Raising Awareness
What are this organization’s external mobilizaton efforts?
Over the past 60 years, The Purple Heart Foundation has expanded our mission to serve all United States veterans and their families. Our partnerships provide all veterans with crucial resources to assist with Education, PTSD resources, recreational therapies, and financial resources for those in need. The Purple Heart Foundation continually raises awareness of our mission through marketing activities such as our annual charity golf tournament and consistent social media presence with over 400,000 followers.
Source: Nonprofit submitted responses
Story of Adaptability
The nonprofit has an opportunity to tell the story of how the organization adapted to tremendous external changes in the last year.
With the onset of the Covid-19 pandemic and the associated economic turmoil, the Foundation created a new program to support veterans and their families by providing micro-grants to help those in financial need with payments for rent, utilities, car repairs and more. During FY 2022, the need was so great that the Foundation’s Board of Directors increased the budget for this program by 50%.
Source: Nonprofit submitted responses
Additional Information
Unscored
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Organization Leadership
Stephen L. Ruckman
Chief Executive Officer
Mary Lou Keener
Chairwoman
Previous: Leadership & Adaptability
Culture & Community
This score provides an assessment of the organization's culture and connectedness to the community it serves. Learn more about how and why we rate Culture & Community.
Culture & Community Score
100
out of 100
Purple Heart Foundation has earned a passing score. This score has no effect on the organization's Star Rating. The organization provided data about how it listens to constituents (Constituent Feedback) (see report below).
The Culture & Community Beacon is comprised of the following metrics:
Constituent Feedback: 100/100 (100% of beacon score)
Diversity, Equity, & Inclusion: Not Scored
Culture & Community Report
100
of 100 points
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Diversity, Equity, & Inclusion
This organization has not provided information regarding the diversity, equity and inclusion (DEI) practices it is presently implementing. As such, the organization has not earned a score on this metric. Charity Navigator believes nonprofit organizations implementing effective DEI policies and practices can enhance a nonprofit's decision-making, staff motivation, innovation, and effectiveness.
Methodology
We are utilizing data collected by Candid to document and assess the DEI practices implemented by the organization. Nonprofit organizations are encouraged to fill out the Equity Strategies section of their Candid profiles to receive a rating.
Learn more about the methodology.
Constituent Feedback
100/100 points
100% of beacon score
This organization reported that it is collecting feedback from the constituents and/or communities it serves. Charity Navigator believes nonprofit organizations that engage in inclusive practices, such as collecting feedback from the people and communities they serve, may be more effective.
View this organization's Constituent Feedback Practices
Methodology
We've partnered with Candid to survey organizations about their feedback practices. Nonprofit organizations can fill out the How We Listen section of their Candid profile to receive a rating.
Learn more about the methodology.
Analysis and Research
Like the overall Encompass Rating System, the Culture & Community Beacon is designed to evolve as metrics are developed and ready for integration. Below you can find more information about the metrics we currently evaluate in this beacon and their relevance to nonprofit performance.
Constituent Feedback
Diversity, Equity, and Inclusion
