In his testimony, the American Institute of Philanthropy president Daniel Borochoff said that the institute gives a failing grade to organizations that put less than one-third of donations into actual programs to assist veterans. There are no laws regulating the amount of money charities spend on overhead, fundraising or giving. But the institute's report suggests that 20 of the 29 military charities studied were using over 80% of the money raised on their behalf to pay fundraising expenses and, in some cases, providing their leaders with six-figure salaries.

Included in that category were groups such as American Veterans Relief Foundation, American Ex-Prisoners of War Service Foundation, National Veterans Services Fund and Vietnow National Headquarters. The Institute recommends that a charity should spend at least 60 percent of its cash budget on actual charitable programs. The concludes “..the two worst performing categories are Veterans & Military and Crime & Fire Prevention. It is ironic that two of the very most popular causes are the least efficient with America’s donated dollars.” To view the complete testimony of American Institute of Philanthropy president Daniel Borochoff, go to www.charitywatch.org home page. am Washington Post contributed this story.