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Interesting Possible Private Benefit Scenario: Wreaths Across America

Download (31)The Des Moines Register published an article titled Nonprofit’s family connections to for-profit wreath company cloud mission to honor veterans. From the story:

That many people, even a local organizer like Palmersheim, don’t understand what happens to revenue after the wreath ceremonies is a problem for charity watchdogs, who question the close relationship between the nonprofit Wreaths Across America, the for-profit Worchester Wreath Co. and family members who run both. The vast majority of revenue from Wreaths Across America nationally — which has amounted to almost $150 million over the last five years — has gone directly to Worchester Wreath.

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The CEO of Wreaths Across America is Karen Worcester, Morrill Worcester’s wife, who does not draw a salary from the nonprofit. Their sons, Rob and Mike, own the majority interest in the wreath business and are married to two of the charity’s board members, Renee and Sarah Worcester, who also are employees of Worcester Wreath Co., according to the nonprofit’s tax documents. Karen and Morrill Worcester’s daughter, Pamela Slaven-Lee, also sits on the board, according to its 2023 Form 990 tax filing and its website.

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Amber Caron, communications director for Wreaths Across America, downplayed concerns about its structure and transparency, saying it has been open from its inception about what she called the perceived conflicts and how they are handled.

She also contended the organization does much more for communities year-round than hold wreath ceremonies and said she believes it is growing because of that positive impact. Since 2007, she said, it has given $26 million to other organizations that support veterans and their families.

It will be interesting to see whether either the Iowa Attorney General’s office or Senator Chuck Grassley, who after all is from Iowa, might take an interest in looking into this possible private benefit situation.

Lloyd Mayer

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