nia exhibits part 1 - michigan.gov20, if your organization contracts with or otherwise engages the...

0001

Exhibit A

0002

Charles H. Nave, P.C. 316 Mountain Avenue SW, Roanoke, VA 24016 ·

Tel: 540 345 8848 Fax: 540 301 4926

October 7, 2016

Dept. er me ..l\ttorney G{?-nera!

Ml Department of Attorney General Charitable Trust Section

OCT O 5 2016

PO Box 30214 Lansing, MI 48909

RE: Renewal of registration for Healing American Heroes, Inc. a/k/a Help Our Wounded (MICS-44560)

VIA UPS GROUND DELIVERY/ 1Z670YY10348758045

Dear Sir or Madam,

Enclosed please find the following documents to renew the registration of my client, Healing American Heroes, Inc. a/k/a Help Our Wounded. ("HAH"):

l. Unified Registration Statement with attachments 2. A copy ofHAH's IRS Form 990 for the year ending 12/31/2015 3. A copy of HAH' s Audited Financial Statement for the year ending 12/31/2015 4. A copy of HAH's contract with its fundraising professional

Please note that HAH was granted an extension until December 31, 2016 to file this report.

Please also note that HAH's Articles of Incorporation and Bylaws, are already on file with your office.

It is my understanding that this· completes HAH's annual renewal process. If that is not the case, or if you have any questions, please do not hesitate to call me.

'N: clg losures

Charles H. Nave, P.C. By:

~~ Charlie Nave, Esq.

0003

.a NAAG/NASCO Standardized Reporting URS v. 3.02 Pgl

Unified Registration Statement (URS) for Charitable Organizations© (v. 3.02)

0 Initial registration [E] Renewal/Update

This URS covers the reporting year which ended (day/month/year) _1_2/_3_!_/1_5 ___________ _

Filer EIN 27-1607659

State Michigan State ID CS-44560

1. Organization's legal name Healing American Heroes, Inc. OCT 6 a 2016

If changed since prior filings, previous name used _N_/_A __________________ -=--~--All other name(s) used He! Our Wounded ("HOW") naritable Trust Section

2. (A) Street address 402 W. Palm Valley Blvd., Suite A

City Round Rock

· State Texas

County Williamson

Zip Code 78664-4200

(B) Mailing address (if different) c/o Charles H. Nave, PC, 316 Mountain A venue SW

l'iECEl -~

City Roanoke County Roanoke City

State _V_A _________________ _

3. Telephone nurnber(s) _,_(5_1_2.,_) _75_0_-9_7_2_2 ______ _

Zip Code _2-'-40_1~6'-----------

Fax nurnber(s) (512) 244-2354

E-mail [email protected] Web site www.helpourwounded.org

4. Names, addresses (street & P .0.), telephone numbers of other offices/chapters/branches/affiliates (attach list).

5. Date incorporated _1_2_/0_2_/0_9 __________ _ State of incorporation _T_e_x_as __________ _

Fiscal year end: day/month -=D'--'e~c~em=b~er""3~1~------------

6. If not incorporated, type of organization, state, and date established

7. Has organization or any of its officers, directors, employees or fund raisers: A. Been enjoined or otherwise prohibited by a government agency/court from soliciting? Yes IJ No !TI

B. Had its registration denied or revoked? Yes D No 0

C. Been the subject of a proceeding regardi~g any solicitation ·or registration?. Yes D No. El ·, .

D. Entered into a voluntary agreement of compliance with any government agency or in a case before a court or administrative agency? yes D No rn

E. Applied for registration or exemption from registration (but not yet completed or obtained)? Yes [l No @

F. Registered with or obtained exemption from any state or agency? Yes El No D

G. Solicited fun~s in any state? Yes 0. No Cl

lf"yes" to 7 A, B, C, D, E, attach explanation.

Jf"yes" to 7F & G, attach list of states where registered, exempted, or where it solicited, including registering agency, dates of registration, registration numbers, any other names under which the organization was/is.registered, and the dates and type (mail, telephone, door to door, special events, etc.) of the solicitation conducted.

8. Has the organization applied for or been granted IRS tax exempt status? Yes [El No 0 If yes, date of application ________ OR date of detennination letter 07 /20/ I 0 If granted, exempt under 501 (t} (3) Are contributions to_ the organization tax deductible?" Yes [l No D

0004

NAAG/NASCO Standardized Reporting URS v. 3.02 Pg2

9. Has tax exempt status ever been denied, revoked, or modified? Yes CJ No @

10. Indicate ail methods of solicitations:

Mail 0 Telephone O Personal Contact 0 Radio/TV Appeals IBl Special Events 0 Newspaper/Magazine Ads IBJ Other(s) O (specify) _E_m_a_il~, _W_e_b_s_ite_· __________ _

See 11. List the NTEE code(s) that best describes your organization Attached

12. Describe the purposes and programs of the organization and those for which funds are solicited (attach separate sheet if necessary). ·

See Attachment

13. List the names, titles, addresses, (street& P.O.), and telephone numbers ofofficers, directors, trustees, and the principal salaried executives of organization (attach separate sheet).

14.(A) (1) Are any of the organization's officers, directors, trustees or employees related by blood, marriage, or adoption to: (i) any other officer, director, trustee or employee OR (ii) any officer, agent, or employee of any fundraising professional firm under contract to the organization OR (iii) any officer, agent, or employee of a supplier or vendor firm providing goods or services to the organization? Yes Cl No fLl

(2) Does the organization or any of its officers, directors, employees, or anyone holding a financial interest in the organization have a financial interest in a business described in (ii) or (iii) above OR serve as an officer, director, partner or employee ofa business described in (ii) or (iii) above?· Yes D No IE! (If yes to any part of 14A, attach sheet which specifies the relationship and provides the names, businesses, and addresses of the related parties).

(B) Have any of the organization's officers, directors, or principal executives been convicted ofa misdemeanor or felony? (If yes, attach a complete explanation.) Yes Cl No IE)

15. Attach separate sheet listing names and addresses (street & P.O.) for all below:

Individual(s) responsible for custody of funds.

lndividual(s) responsible for fund raising.

Individual(s) authorized to sign checks.

Individual(s) responsible for distribution of funds.

Individual(s) responsible for custody of financial records.

Bank(s) in which registrant's funds are deposited (include account number and bank phone number).

16. Name, address (street & P.O.), and telephone number of accountant/auditor.

Name Dunham, Aukamp & Rhodes, CPA's

Address 4437 Brookfield Corporate Drive, Suite 205D

City Chantilly State :f.A__ Zip Code _2_2_15_1 ___ Telephone (703) 631-8940

Method of accounting ..c.Ac..;cc.cc.c...ru"'a=l----------------------------~--

17. Name, address (street & P.O.), and telephone number of person- authorized to receive service of process. This is a statespecific item. See instructions.

Name CSC-Lawyers Incorporating Service Companyq

Address 601 Abbot Road

City East Lansing State _Ml__ Zip Code """4-=-88=2=3--___ Telephone (800) 927-9800

0005

NAAGINASCO Standardized Reporting URS v, 3.02 Pg3

18. (A) Does the organization receive financial support from other nonprofit organizations (foundations, public charities, combined campaigns, etc.)? Yes I!] No tl

(B) Does the organization share revenue or governance with any other non-profit organization? Yes CJ No ~

(C) Does any other person or organization own a 10% or greater interest in your organization OR does your organization own a 10% or greater interest in any other organization? Yes [l No !!!

(If''yes" to A, B or C, attach an explanation including name of person or organization, address, relationship to your organization, and type of organization.)

19. Does the organization use volunteers to solicit directly? Yes lfil No Cl

Yes IJ No E,l Does the organization use professionals to solicit directly?

20, If your organization contracts with or otherwise engages the services of any outside fundraising professional (such as a "professional fundraiser," "paid solicitor," "fund raising counsel," or "commercial co-venturer"), attach list including their names, addresses (street & P.O.), telephone numbers, and location of offices used by them to perform work on behalf of your organization. Each entry must include a simple statement of services provided, description of compensation arrangement, dates of contract, date of campaign/event, whether the professional solicits on your behalf, and whether the professional at any time has custody or control of donations.

21. Amoun~ paid to PFR/PS/FRC during previous year: $ 456.090

22. (A) Total contributions: $ 3,362,784

(B) Program service expenses: $ 2,378,720

(C) Management & general expenses: $ __ 4_0-'-7,~1_25 __

(D) Fundraising expenses:$ 459,135

(E) Total expenses: $ 3,244,980

(F) Fundraising expenses as a percentage of funds raised: ___ 1_3._6_5 __ %

(G) Fundraising expenses plus management and general expenses as a percentage of funds rafaed: 25.58 %

(H) Program services as a percentage of total expenses: __ 73_._3 __ % ,.~·'

, / 1',,,oott.,,,,,

{o ,tt ,..cc fl Ojj, s,,

Under penalty of perjury, we certify that the above information and the informa n g6~1ne"di~ 'ant_-9;'\ ' attachments or supplement is true, correct, and complete. · \ f ~: "\" 0 TA~ \ ~ 1

r ,,,, B ''er

~of L,. t,'{4- fl/I =*, t:::,,p J- ,r:. Sworn to before me on ( or signed on) :crfn1W }...,lft , 20 I.!£_ ~ S, :, A •

01' 14.t1s ,: .,. ~ _.

ltJdj ~ .. i· /_ . · \11' '. ll&L\C : i .~' ,~~ fl(,$ '- \ 1-:.,, -))/, ,___ __,,~~I Notary public (ifreqmred) ~ ,. ',,,,~l" 0 ~-e'o\.~\'""..,..,,' I

Rosalinda Rahin 1 .

Please see next page for _ additional signatures. ]'

F Title (printed)

Tara Cozzarelli ,,, ?\\

•111.11111111~''

Name {printed)

~CJJ; Name (sign r

Secretary/Treasurer/Director Ti ii e (printed)

Consult the state-by-state appendix to the URS to determine whether supporting documents, supplementary state forms or fees must accompany this form. Before submitting your registration, make sz,re yo11 have attached or included everything required by each state to the respective copy of the URS.

Attachments may be prepared as one continuous document or as separate pages for each item requiring elaboration. In either case, please number the response to correspond with the URS item number.

©2006MULTI-STATE FILER PROJECT_

T:\HotDocs Templates\HotDocs Answers\Charities\HAH\ 160728 HAH FY 2015 Answers.anx

0006

.......

\ ·-.~ .. ~·.:

·:

~·· . ,.,:. ~.•,;:

., .: ,· ':;) ..

' .. ~ ~::. . .. \

0007

NAAG/NASCO Standardized Reporting URS v. 3.02 Pg3

18.(A) Does the organiz.ation receive financial support from other nonprofit organizations (foundations, public charities, combined campaigns, etc.)? Yes In No Cl

(B) Does the organization share revenue or governance with any othernon-profit organization? Yes CJ No !l (C) Does any other person or organization own a I 0% or greater interest in your organization OR does your organization

own a I 0% or greater interest in any other organization? Yes Cl No !I

(If"yes" to A, B or C, attach an explanation including name of person or organization, address, relationship to your organization, and 1ype of organization.)

19. Does the organization use volunteers to solicit directly?

Does the organization use professionals to solicit directly?

Yes ml No [J

Yes [J No El

20. If your organization contracts with or otherwise engages the services of any outside fundraising professional (such as a "professional fundraiser," "paid solicitor," "fund raising counsel," or "commercial co-venturer"), attach !is.t including their names, addresses (street & P.O.), telephone numbers, and location of offices used by them to perfonn work on behalf of your organization. Each entry must include a simple statement of services provided, description of compensation arrangement, dates of contract, date of campaign/event, whether the professional solicits on your behalf, and whether the professional at any time has custody or control of donations.

21. Amount paid to PFR/PS/FRC during previous year: $ 456 090

22.(A) Total contributions: $ 3,362,784

(B) Program service expenses: $ 2,378,720

(C) Management & general expenses: $ __ 4_0_7~, 1_2_5 __

(D) Fundraising expenses: $ 459,135

(E) Total expenses: $ 3,244,980

(F) Fundraising expenses as a percentage of funds raised: ___ 1_3_.6_5 __ %

(G) Fundraising expenses plus management and general expenses as a percentage of funds raised:

(H) Program services as a percentage of total expenses: __ 73_._3 __ %

25.58 %

Under penalty of perjury, we certify that the above information and the information contained in any attachments or supplement is true, correct, and complete.

Sworn to before me on (or signed on) ..... 1 .... ·o<..-..:..A.:..·>...,,J.9'-'u"'Ji~·------'' 20 [£_

N~if~=~ KRISTINA LYNN PEARCE My Notary ID# 130736809

Expires July 13, mo

Rosalinda Babin

Name (printed)

Q -~ ~ President/Director Title (printed)

Tar:

Nan Please see next page

for additional signatures. Na1

Sccretruy!l'reasurc1 I Uuvv,v.

Title (printed)

Consult the state-by-state appendix to the URS to determine whether supporting documents, supplementary state forms or fees must accompany this form. Before submitting your registration, make sure yo11 have attached or incl11ded everything req11ired by each state to the respective copy of the URS. ·

Attachments may be prepared as one continuous document or as separate pages for each item requiring elaboration. In either case, please number the response to correspond with the URS item number.

©2006MULTl-STATE FILER PROJECT

T:\HotDocs Templatcs\llotDocs Answers\Chariti~s\llAH\160728 HAH FY 2015 Answers.am<

0008

Healing American Heroes, Inc. URS Addendum

Item 7F / The organization is registered or ex~mpt from registration in these states:

Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Kansas, Kentucky, Maine, Mary land, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin

Item 70 / The organization solicited in the following states during the most recent FY:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, West Virginia, Wisconsin, Wyoming

Part 11 / NTEE codes

Y MUTUAL/MEMBERSHIP BENEFIT

Item 12 / Charitable Purpose:

To serve the physical, spiritual & emotional needs of our wounded warriors & those who care for .them. To enlist the public1s aid in supporting veterans, military retirees, active duty military, their families and caregivers, injured as a result of the Global War on Terrorism. To provide cultural and recreational experiences for the wounded and their families so that they may heal as a whole, mind, body, and spirit as a result of service in the armed forces. To support first responders, chaplains, and medical personnel injured while serviing in the armed forces. ·

Part 13 / 0 fficers Directors, Trustees and Principal Salaried Executives

Rosalinda Babin -- President/Director

Theresa Lattimore -- Vice President/Director

Tara Cozzarelli -- Secretary/Treasurer/Director

Mark Robertson -- Director

Rene Pere -- Director

Henry Barbe -- Director

0009

Healing American Heroes, Inc. URS Addendum

All of the above can be reached at this address:

402 W. Palm Valley Blvd., Suite A Round Rock Texas 78664-4200 (512) 750-9722

Item 15 I Individual(s) responsible for custody of funds:

a. Rosalinda Babin -- President/Director

b. 402 W. Palm Valley Blvd., Suite A Round Rock, Texas 78664-4200

Item 15 / Individual(s) responsible for distribution of funds:



Item 15 / Individual(s) responsible for fundraising:



Item 15 / Individual(s) responsible for custody of financial records:



a. Badger Sumrall & Co. CPAs --Accountants (For the Mail Program Acco1,+nts)

b. 7410 Heritage Village Plaza Gainesville, VA 20155

Item 15 / Individual(s) authorized to sign checks:



0010

Healing American Heroes, Inc . . URS Addendum

Item 15 / Bank Account Infonnation

a. Chase JP Morgan Chase Bank, N .A.

b. 12750 Merit Drive, te. l 04

c. Dallas, TX 75201

d. Tel: (972) 663-1600

e. Account# 835868068

a. United Bank (Dual Hwy Office)

b. 1219 Mount Aetnea Road

c. Haggerstown, MD 217 4 2

d. Tei: (301) 739-4690

e. Account# 4300032262

Item 18(A):

Healing American Heroes, Inc. ("HAH") participates in the Combined Federal Campaign. and also receives funds frqm the following:

Northwest Sertoma Club of Austin PO Box 9565 Austin. TX 78766 .

Item 20:

Professional Fundraising Consultant:

Jeremy Squire and Associates, Ltd. 39 Garrett Street, Suite 2 Warrenton, VA 20186 Tel: (540) 428-3630

Contract Begin Date: September 1, 2011; Contract End Date: December 31, 2020

Services Provided Under Contract: Jeremy Squire and Associates, Ltd. ("JS&A"), provides fundraising consulting and management services. At no time does Jeremy Squire have custody or control of donations.

Compensation Arrangement: HAH shall pay JS&A a mail fee of $70 per 1,000 letters _ mailed to prospective donors and a mail fee of $80 per 1,000 letters mailed to HAH

housefile names.

0011

Form 8879-E 0

Department of \he T •easury Internal Revenue Service

IRS e-file Signature Authorization for an Exempt Organization

For (alendar year 2015. er fis,;al year beginning. ______ , 2015, and ~ndln<J ______ , 20

.. Do not send to the IRS. Keep for your records. .. Information about Fonn 8B79·EO and Its instructions is at www.lrs.gov/form8879eo.

OMS N<o. 1545-1878

2015 ame o exemp org.tmzahon INC.

Emp oyar i ontl cat on nu

27-1607659 Name .and htle of officer

ROSALINDA BABIN PRESIDENT I Part I: jType of Return and Return Information (Whole Dollars Only) Check the box for the return for which you are using this Form 8879-EO and enter the applicable amount, if any, irom the return. If you check the box on line 1 a, 2a, 3a, 4a, or Sa, below, and the amount on that line for the return being tiled with this form was blank, then leave line 1b, 2b, 3b, 4b, or Sb, whichever is applicable, blank (do not enter -0·). But, if you entered -0- on the return, then enter ·O· on the applicable line below. Do not complete more than 1 line in Part l. .

1 a Form 990 check here ..... ,.. ~ b Total revenue, if any (Form 990, Part VIII, column (A), line 12)......... 1 b 3, 431,306, 2a Form 990-EZ check here., ..... 0 b Total revenue, if any (Form 990-EZ, line 9)........................ 2b-----'---'----'---3a Form 1120-POL check here ........ 0 b Total tax (Form 1120-POL, line 22)............................ 3 b 4a Form 990·PF check here ..... ,.. 0 b Tax based on investment income (Form 990·PF, Part VI, line 5),... 4b _______ _

5 a Form 8868 check here ... ,. 0 b Balance Due (form 8868, Part I, line 3c or Part II, line 8c)............. 5 b _______ _

f Part. li:11 Declaration and Signature Authorization of Officer Under penalties of perjury, I declare that I am an officer of the above organization and that I have examined a copy of the organization's 2015 .electronic return and accompanying schedules and statements and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that the amount in Part I above is the amount shown on the copy of the organization's electronic return. I consent to allow my intermediate service provider, transmitter, or electronic return originator (ERO) to send the organization's return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission (b) the reason for any delay In processing the return or refund, and (c} the date of any refund. If a~licable, I authorize !he U.S. Treasury and its designated Financial Agent to initiate an electronic funds withdrawal {direct debit) entry to the financial institution account indicated in the tax preparation software for payment ofthe organization's federal taxes owed on this return, and the financial institution lo debit the entry lo this account. To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1·888·353-4537 no later than 2 business days prior to the payment (settlement) date. I also

· authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer Inquiries and resolve issues related to the payment. I have selected a personal identification number (PIN) as my signature for the organization's electronic return and, it applicable, the organization's consent to electronic iunds withdrawal.

Officer's PIN: check one box only ~ I authorize DUNHAM, AUKAMP & RHODES, PLC

ERO flrmnamo to enter my PIN ......,,,.........,,0_7_9_9..,.3 __ ,___.l as my signature

Entorflvo numbers, but do not anter all :zervs

on the organization's tax year 2015 electronically filed return. ·lf I have indicated within this return that a copy of the return is being filed with a state agency(ies) regulating charities as part of the IRS Fed/State program, I also authorize ttie aforementioned ERO to enter my PIN on the return's disclosure consent screen. · ·

0As an officer of the organization, I will enter my PIN as my signature on the organization's tax year2015 electronically filed return. If I have indicated within this return that a copy of the return is being filed with a state agency(ies) regulating charities as part of the IRS Fed/State program, I will enter my PtN on the return's disclosure consent screen.

Offu:a:r's- signature .,. Dale i,,

ERO's EFIN/PIN. Enter your six-digit electronic filing identification number (EF.lN) followed by your five-digit self-selected P1N ....................................•................. 54514520151

o not en1tr 1 :z:aros

I certify that the above numeric entry is my PIN, which is my signature on the 2015 electronically filed return for the organization indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 4163, Modernized e-File (MeF) Information for ,utho,i"d tRS ,-file Pc,,,ido• •, 8,sio~, R,tums. /

rna,~,~ • ~-~'••• ~ ERO Must Reialn This Form - See Instructions

Do Not SubmitThis Form To the IRS Unless Requested To Do So

BAA For Paperwork Reduction Act Notice, see instructions. Form 887S-EO (2015)

1EEA7401L 10/22/lS

0012

Form 990 Return of Organization Exempt From Income Tax

Under section 501(c), 527, or 4947(a)(l) of the Internal Revenue Code (except private foundations)

0MB No. 1545-0047

2015 Department of the Treasury .,. Do not enter social security numbers on this fonn as it may be made public. internal Revenue service .,. Information about Form 990 and ils instructions is at www.irs.gov/form990.

A For the 2015 calendar year, or tax year beginning , 2015, and ending B Check if applicable: C D Employer identification number

~

.... Address change HEALING AMERICAN HEROES, INC. 27-1607659 Name change DBA HELP OUR WOUNDED E Telephone m,mbcr - 402 w PALM VALLEY BLVD. STE A Initial return (888) 377-7.964 ..... ROUND ROCK, TX 78664 Final retum/lermmated .....

G Gross rece,pts $, Amended return 3 431 306. -Apphcat10n pending F Name and address of pnnc1pa1 ofhcer; li(a) Is \h,s a group return for. subordinates?~ Yes X No - H(b) Afe all subordinates included? Yes SAME AS C ABOVE No If 'No,· attach a hst. {see instructions)

I Tax-exempt status IX! 501(cX3> I I SOHc> ( ) .. (insert no.) I I 4947(aX1) or I 1s21 J Website: ... WWW.HELPOURWOUNDED.ORG li(c) Group exemption number ,..

K Form of organization: /Xlcorporatron I I Trust I J Assocrahon I I Other ,.. I L Year of formahon: 2010 \ M Slate of legal dom1c1le: · TX

I P.a'ft!lillHJll!il Summarv 1 Briefly describe the organization's mission or most significant activities: TO SERVE THE PHYSICALL SPIRITUAL & ___

a, EMOTIONAL NEEDS OF OUR WOUNDED WARRIORS & THOSE WHO CARE FOR THEM ______________ t) C <ti ---------------------------------------------------------------C ... ---------0-----------------------------------------------------..

2 Check this box .. if the organization discontinued its operations or disposed of more than 25% of its net assets. > 0

<!l 3 Number of voting members of the governing body (Part VI, line la) ... .... ...... .. ' ... .......... , 3 6 o!I 4 Number of independent voting members of the governing body (Part VI, line lb) ... 4 6 "'

.... ....... .. .... • .!!! 5 Total number of individuals employed in calendar year 2015 (Part V, lrne 2a) .. . ' . . . ........... . ..... 5 1 ~ 6 Total number of volunteers (estimate if necessary) ........... : . .......... ... ....... . . . . ' . . ' ' ' . . . . . ' . 6 <;() :;::: t) 7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 0. ,ci: ... ... .. ... . ........ ..........

b Net unrelated business taxable income from Form 990-T, line 34 ..... ...... ..... . ...... ...... .... 7b 0 • Prior Year Current Year

8 Contributions and grants (Part VIII, line lh) .. 3 208 199. 3 362,784. Q) :::, 9 Program service revenue (Part VIII, line 2g). .... ..... C: Q)

10 Investment income· (Part VIII, column (A). lrnes 3, 4, and 7d). > Q)

cc 11 Other revenue (Part VIII, column (A), Imes 5, 6d, 8c, 9c, 1 Oc, and 1 le) .. .. .. 47 910. 68,522. 12 Total revenue - add lines 8 through 11 (must equal Part VIII, column (A), line 12} .. 3 256 109. 3 431,306. 13 Grants and similar amounts paid (Part IX, column (A), lrnes 1-3) ... ..... .... ... 366 535 • 320 112. 14 Benefits paid to or for members (Part IX, column (A}, line 4) ...... .. ... ,, ' . . . . . . . . 15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5-10) ... .. 32 295. 38 754 .

"' <I> 16a Professional fundratsrng fees (Part IX, column (A), line 1 le} ... 81 855. 65 982. <II ... C:

:-~;;}-~{t)~:;:~:!:~1!ttm11:11111;1::1::;;;: ·_;~~:··:~L-:~~t};!~;:;;Wf:ii,;i: Q) b Total fundra1srng expenses (Part IX, column (D), line 25) .. 459 135. C.

)( w 17 Other expenses (Part IX, column (A), lines 11a-11d, 1 lf-24e) .. 2 457 990. 2 820 132. ...

18 Total expenses. Add lines 13-17 (must equal Part IX, column (A), hne 25) ... , 2,938 675. 3,244,980 . 19 Revenue less expenses. Subtract lme 18 from line 12. .... ... . . .. . .. 317 434 • 186 326.

0. Beginning of Current Year End of Year· d 20 Total assets (Part X, lrne 16). 355 332 • 534 900. . . .... ... .., .

•m Total liab1ht1es (Part X, line 26) ... ..:.,, 21 ... ... .... .. ,, ..... .. . . . . . . . . . . . . .. 323 455 . 316 697. .. 5

Zu. 22 Net assets or fund balances. Subtract lrne 21 from line 20 .. 31 877. 218 203. ······

I Part!Uiit] Siqnature Block Under penalties of pequry. r decla,e !hat I hove examined !his retum. 1nclud1rtg .:iccompany,ng schedules and statements., and to the bes1 ot my knowledge nnd belief. 111s true. conect. a,,d complete. Declarah~n of preparer (other 1han officer) is based on all 1nformat1on of which preparer has any knowledge.

~ I Sign Signature o1 office, Date

Here ~ ROSALINDA BABIN PRESIDENT Type or pun1 name and iltle.

PnnUT ype prepare, 's name CPA I P,epa1e1 's signature I Dato Chock LJ,1 IPTIN

Paid MICHAEL D AUKAMP self-employed P00723879

Preparer Fnm's. name .. DUNHAM AUKAMP,& RHODES, PLC Use Only F1,m',s address .. 4437 BROOKFIELD CORPORATE DR SUITE 205 f11m'sEIN .. 54-1972062

CHANTILLY VA 20151 Phone no. 703-631-8940 May the IRS discuss this return with the preparer shown above? (see instructions) . IXI Yes / / No BAA For Paperwork Reduction Act Notice, see the separate lnsiructions. TEEAOI i3L 10/12115 Form 990 (2015)

0013

Form 990 (2015) HEALING AMERICAN HEROES, INC. 27-1607659 Page 2

jgi!Ji!llfl Statement of Program Service Accomplishments Check if Schedule O contains a response or note to any line in this Part Ill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D

Briefly describe the organization's mission:

TO SERVE THE PHYSICAL L SPIRITUAL & EMOTIONAL NEEDS OF OUR WOUNDED WARRIORS & THOSE __ _ WHO CARE FOR THEM ___________________________________________________ _

2 Did the organization undertake any significant program services during the year which were not listed on the prior

Form 990 or 990-EZ?.................. . .......................................... -- · - · ....... , .. ,,, · · ·, ... D If 'Yes,' describe these new services on Schedule 0.

3 Did the organization cease conducting, or make significant changes in how it conducts, any program services? .... D If 'Yes,' describe these changes on Schedule 0.

-Yes

Yes

~ No

~ No

4 Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501 (c)(3) and 501 (c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. ·

4a (Code: ____ ) (Expenses $ 2,029,650. including grants of $ _______ ) (Revenue $ ______ _

PUBLIC EDUCATION & AWARENESS: DISSEMINATE INFORMATION ON THE SPECIAL NEEDS OF OUR ___ _ WOUNDED VETERAN & ACTIVE DUTY MILITARY. PROVIDE RESOURCE AND SUPPORT SERVICE INFORMATION TO FAMILY MEMBERS AND CAREGIVERS AS THEY CARE FOR AND TRANSITION MILITARY_ SERVICE MEMBERS BACK INTO THE COMMMUNITY. _________________________________ _

4 b (Code: ____ ) (Expenses $ 34 9, Q 70 . including grants of $ _______ ) (Revenue $ ______ _

PROVIDE FINANCIAL ASSISTANCE TO EASE THE BURDENS THAT CAN RESULT WHEN PROVIDING CARE_ TO A MILITARY_SERVICE MEMBER WOUNDED OR INJURED DURING THE GLOBAL WAR ON TERROR, ____ _ INCLUDING: TRAVEL_TO HOSPITALS AND RECOVERY CENTER~_PARTICIPATION IN ADAPTIVE SPORTS_ EVENTS, ASSIST WITH SPECIALIZED EQUIPMENT AND COMMUNICATION DEVISES,_MORTGAGE ______ _ ASSISTANCE AND RENT EVICTION PREVENTION. __________________________________ _

4 c (Code: ) (Expenses $ Including grants of $ ) (Revenue $ --- ------ ------- -------

4 d Other program services. (Describe in Schedule 0.)

(Expenses $ including grants of $ ) (Revenue $

4 e Total program service expenses "" 2 , 3 7 8, 7 2 0 .

BAA TE.E.AOI02L 10/12/15 Form 990 (2015)

0014

Form 990 (2015) HEALING AMERICAN HEROES INC. 27-1607659 P:aJlti~.a Checklist of Re uired Schedules

Is the organization described in section 501 (c)(3) or 4947(a)(l) (other than a private foundation)? If 'Yes,' complete Schedule A .................................................................................................... .

2 Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)?. .......... .

3 Did the organization engage m direct or indirect pohhcal campaign acbvil1es on behalf of or in oppos1t1on to candidates for public office? /f 'Yes.' complete Schedule C, Part I..... . . .. . . . . . . . . . . . . . .. . . . . . . . . . . ...

4 Section 501(cX3) organizations. Did the organization engage in lobbying activities, or have a section 501 (h) election in effect during the tax year? If 'Yes,' complete Schedule C, Part II. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....

5 Is the organization a section 501 (c)(4}, 501 (c)(5), or 501 (c)(6) organization that receives membership dues, assessments, or s1m1lar amounts as defined 1n Revenue Procedure 98-19? if 'Yes,' complete Schedule C, Part Ill

6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If 'Yes,' complete Schedule D, Part I .............................................................................................. .

7 Did the organization receive or hold a conservation easement. including easements to preserve open space, the environment, historic land areas, or historic structures? If 'Yes,· complete Schedule D, Part II ........... .

8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If 'Yes,• complete Schedule D, Part Ill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... .

9 Did the organization report an amount in Part X, line 21, for escrow or custodial account liability; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management. credit repair. or debt negotiation services? /f 'Yes.· complete Schedule D. Part IV.. . . . . . . . . . . . . . .............. .

10 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If 'Yes,' complete Schedule D, Part V. ............. .

11 If the organization's answer to any of the following questions is 'Yes', then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable.

Yes

X 2 X

3

4

5

6

7

8

9

10

a Did the organization report an amount for land, buildings and equipment in Part X, line 10? If 'Yes,• complete Schedule D, Part VI.... . . .. .. .. .. . . .. .. . .. .. . .. .. .. .. . . . . . . . .. .. . .. . . 11a X

Page 3

No

X

X

X

X

X

X

X

X

b Did the orgarnzat1on report an amount for investments - other securities 1n Part X, line 12 that is 5% or more of its lotal assets reported 1n Part X. line 16? If 'Yes.' complete Schedule D. Part VII.... 11 b X

c Did lhe organization report an amount for investments - program related in Part X, line 13 Iha! 1s 5% or more of i'ts total assets reported in Part X, hne 16? If 'Yes,· complete Schedule D. Part VIII... . . . . . . . . . . . . . . . . . 11 c X

d Did the orgarnz.at1on report an amount for.other assets in Part X, hne 15 that 1s 5% or more of its total assets reported in Part X. line 16? If 'Yes,' complete Schedule D, Part IX ...... ...................... '...... . . . . . . . . . . . . 11 d X

e Did the organization report an amount for other liabilities in Part X, hne 25? If 'Yes,· complete Schedule D, Part X 11 e X

f Did the organization's separate or consolidated financial statements for the tax year include a footnote !hat addresses the organization's hab1lity for uncertain tax pos1t1ons under FIN 48 (ASC 740)? If 'Yes,' complete Schedule D. Part X. . . . 11 f X

12a Did the organization obtain separate, independent audited financial statements for the tax year? If 'Yes.' complete Schedule D, Parts XI, and XII.......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a X

b Was the organization included in consohdated, independent audited financial statements for the tax year? If 'Yes.· and if the organization answered 'No' to line 12a. then completing Schedule D, Parts XI and XII is optional . 12b X

13 Is the organization a school descnbed 1n section 170(b)(l)(A)(ii)? If 'Yes.· complete Schedule E... 13 X 14a Did the organization maintain an office, employees, or agents outside of-the United Slates?. 14a X

b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, lundraising, business, investment. and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If 'Yes,• complete Schedule F, Parts I and IV. . . . . . . . . . . 14b X

15 Did the orgarnzahon report on Part IX. column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign orgarnzat1on? If 'Yes,• complete Schedule F. Parts II and IV.. . . . . . . . . . . . . . . . . . 15 X

16 Did the organization report on Part IX, column (A), hne 3, more than $5,000 of aggregate grants or other assistance to or for foreign 1nd1v1duals? If 'Yes.' complete Schedule f, Parts Ill and IV... 16 X

17 Did the organization report a total of more lhan $15,000 of expenses for professional fundra1smg services on Part IX, column (A), lines 6 and l le? If 'Yes,' complete Schedule G. Part I (see instructions)... 17 X

18 Did the organizahon report more than $15,000 total of fundra1sing event gross income and contributions on Par\ VIII, lines le and 8a? If 'Yes,' complete Schedule G, Poirt II..... . . . . . . . . . . . . . . . . 18 X

19 Did the orgarnzallon report more than $15,000 of gross income from gaming act1v1t1es on'Part VIII. hne 9a? If 'Yes,' complete Schedule G. Part Ill. 19 X

BAA TEEA0103L 10/12/15 Form 990 (2015)

0015

Form 990 (2015) HEALING AMERICAN HEROES, INC. 27-1607659 Page4

I Ranl!l~!~¥.l Checklist of Required Schedules (continued)

20a Did the organization operate one or more hospital facilities? If 'Yes', complete Schedule H ........................... .

b If 'Yes' to line 20a, did the organization attach a copy of its audited financial statements to this return? ..... .

21 Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? If 'Yes,' complete Schedule I, Parts I and II ... ......... .

22 Did the organization report more thar-1 $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? If 'Yes,' complete Schedule I, Parts I and Ill. . . . . . . . . ...... .

23 Did the organizatmn answer 'Yes' lo Part VII, Section A, line 3, 4, or 5 about compensation of the organizahon's current and former officers, directors, trustees, key employees, and highest compensated employees? If 'Yes,' complete Schedule J. . . . . . . . . . ..... _ . . . . . . . . . . . . ..... _ . _ _ _ ____ . _

24a Did the organization have a tax-exempt bond issue with an outstanding pnnc1pal amount of more than $100,000 as of

~o~~r;1~a$ci~~~i/itif ~~~~ 'lf:i 1~jJ:i~d 2i~er_ ~ece~b~r 3_1_, _ 200~_7 If ,r.es,: a-~~w~r _lines_ 24b_ /~rough_ 24(} ~~~ __

b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? ..

c Did the organizalion maintain an escrow account other than a refunding escrow at any time during the year .to delease any tax-exempt bonds? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........... _ . ______ ..... ___ . __ . _. _

d Did the· organization act as an 'on behalf of' issuer for bonds outstanding at any time during the year? ................ .

25a Section 501(cX3), 501(c)(4), and 501(cX29) organizations. Did the orgamzalion engage 1n an excess benefit transaction with a disqualified person during the year? If 'Yes,' complete_ Schedule L, Part I. . . . . . . . ........... .

b Is the organization aware that it engaged in an excess benefit transaction with a disqualified pi:rson m a prior year, and that the transaction has not been reported on any of the organization's pnor Forms 990 or 990-EZ? If 'Yes,' complete Schedule L, Part I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... _ _ . _____ _

26 Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or

Yes No

20a X t----+---t---

20b

21 X

22 X

23 X

24a X 24b

24c

24d

25a X

25b X f----l----1---

former officers, directors, trustees, key employees, highest compensated employees, or d1squalif1ed persons? If· 'Yes', complete Schedule L, Part ll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................ t--26--t--+-X_

27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selec!lon committee member, or to a 35% controlled entity or family member of any of these persons? If 'Yes.' complete Schedule L, Part Ill.. . . . . . . . . ................ .

28 Was the organization a party to a business transaction with one of lhe following parties (see Schedule L. Part IV instructions for applicable filing thresholds. conditions, and exceptions):

a A current or former officer, director, trustee, or key employee? If 'Yes,' complete Schedule L, Part IV ......... _. _

b A family member of a current or former officer. director, trustee, or key employee? If 'Yes,' complete Schedule L. Part IV. . . . . . . . . . . . .

c An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If 'Yes,' complete Schedule L, Part IV ..................... .

29 Did the organization receive more than $25,000 in non-cash contributions? If 'Yes,' complete Schedule M .. .... .

30 Did the organ1zat1on receive contributions of art, historical treasures. or other similar assets. or qualified conservation co_ntribubons? If 'Yes,' complete Schedule M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

31 Did the organization liquidate, terminate, or dissolve and cease operations? If 'Yes,' complete Schedule N, Part I ..

32 Did the orgarnzat,on sell, exchange, dispose of, or transfer more than 25% of its net assets? If 'Yes,' complete Schedule N. Part II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......... .

33 Did !he organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701 -3? If 'Yes,' complete Schedule R. Part I. . ...... .

34 Was the organization related to any tax-exempt or taxable entity? If 'Yes,' complete Schedule R, Part 11, Ill, or IV, and Part V. line I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

35a Did the organization have a controlled entity within the meaning of section 512(b)(l3)?

b If 'Yes' to line 35a. did the organization receive any payment from or engage in any transaction with a controlled entity within the meari1ng of section 512(b)(l 3)? If 'Yes,' complete Schedule R, Part V: line 2 . . . . . . . . . . . . . . .

36 Section 501 (cX3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If 'Yes.· complete Schedule R. Part V. line 2 . . . . . . . .. _ ....

37 Did the organization conduct more thari 5% of ,ts act1v1ties through an entity that 1s not a related orgamzahon and that 1s treated as a partnership for federal income tax purposes? If 'Yes,' complete Schedule R. Part VI

38 Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, Imes llb and 19? Note. All Form 990 filers are required to complete Schedule 0.. . . . . . . . . . ............. .

BAA

TEEA0104L \Q,1\2/15

27 X

28b X

28c X 29 X

30 X .31 X

32 X

33 X

34 X 35a X

35b

36 X

37 X

38 X Form 990 (2015)

0016


!:~HI Statements Regarding Other IRS Filings and Tax Compliance Check if Schedule O contains a response or note to any line in this Part V .......................................... .

1 a Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable ...... . 1a 2 b Enter the number of Forms W-2G included in line la. Enter -0- if not applicable ... . lb 0 c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming

(gambling) winnings to prize winners? ........................................................................ .

2a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax State-ments, filed for the calendar year ending with or within the year covered by this return. . .. ~2_a~ _______ _,l

b If at least one is reported on line 2a, did the organization file all requ11ed federal employment tax returns?.

Note. If the sul']'l of lines 1 a and 2a is greater than 250, you may be required to e-file (see instrucltons)

3 a Did the organization have unrelated business gross income of $1,000 or more dunng the year? ... .

b If 'Yes' has ,t filed a Form 990· T for this year? If 'No' to line 3b, provide an explanation in Schedule 0 . ...................... .

4 a At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)?.

b If 'Yes,' enter the name of the foreign country: ,.

See instructions for filing requirements for FinCEN Form 114, Report ol Foreign Bank and Financial_ Accounts. (FBAR)

5 a Was the organization a party to a proh1b1ted tax shelter transaction at any time during the tax year? ........... .

b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? ..... .

c If 'Yes,' to line 5a or 5b, did the organization file Form 8886-T?. . ............................................ .

6a Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contribuhons that were not tax deductible as charitable contributions? .................................. .

b If 'Yes,' did lhe orgamzat1on include with every sohcitation an express statement that such contributions or gifts were not tax deductible?. ........... .'............ ·

7 Organizations that may receive deductible contributions under section 170(c).

a Did the organization receive a ~ayment tn excess of $75 made partly as a contribution and partly for goods and services provided to the payer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................ .' ......................... .

b If 'Yes: did the organization notify the donor of the value of lhe goods or services provided?.. . ........ .

c Did the organization sell, exchange. or otherwise dispose of tangible personal property for which ,twas required to file Form 8282?

d If 'Yes,' indicate lhe number of Forms 8282 filed during the year 7d

e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? ..

f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? ....... .

g II the organization received a contribution of qualified intellectual properly, did the orgamzat1on file Form 8899 as required?.

h If the organ1zat1on received a contnbulton of cars, boats, airplanes, or other vehicles, did the organization file a Form l 098-C? ...

8 Sponsoring organizations maintaining donor advised funds. D1d a donor advised fund maintained by the sponsoring

orgari1zahon have excess business holdings at any time during the year?. . . . . . . . . . . . . . . . . . . . . ........... .

-9 Sponsoring organizations maintaining ·dono( advised funds. a Did the sponsoring organization make any taxable distributions under section 4966? .·

b Did the sponsoring organization make a distnbutton to a donor, donor advisor, or related person? ..

10 Section 501 ( c)(7) organizat!ons. Enter:

a Imitation fees and capital contributions included on Part VIII, line 12. ,_1_0_a ________ _ b Gross receipts, included on Form 990, Part VII I, line J 2, for pubhc use of club facilities. .... ~1_0_b.,__ _______ -;

11 Sedion 501(c)(12) organizations. Enter:

a Gross income fr-0m members or shareholders 11 a

b Gross income from other sources (Do not net amounts due or paid lo other sources against amounts due or received from them.) · .__11_b.,__ _______ -;

12a Section 4947(a)(1) non-exempt charitable.trusts. Is the orgamzalton f1hng Form 990 1n heu of Form 1041?..

b If 'Yes,' enter the amount of tax-exempt interest received or accrued during the year. .__12_b.,__ _______ -;

13 Section 501(c)(29) qualified nonprofit health insurance issuers. a Is the organization licensed to ·issue quahf1ed health plans 1n more than one state?

Note. See the instructions for additional information the organization must report on Schedule 0.

b Enter the amount of reserves the organization 1s·required to ma1nta1n by the states 1n which the organization 1s licensed to issue qual1f1ed health plans . . . . . ...... . 13b

c Enter the amount of reserves on hand . . . . . . . . . . 13 c .___.,__ _______ -;

14a Did the organization receive any payments for indoor tanning services during the tax year?.

_b If 'Yes,' has it filed a Form 720 to report these payments? If 'No,' provide an explanation in Schedule 0 BAA TEEA0105L f0/12/15

2b X ;Hl)?: ~h~ ~~-?:~

3a X 3b

4a X

Sa X Sb X Sc

6a X

6b

7e

71

7g

7h

8

0017


! lila'fli.YJ.llml Governance, Management, and Disclosure For each 'Yes' response to lines 2 through lb below, and for a 'No' response to line Ba, 8b, or 7 Ob below, describe the circumstances, processes, or changes in · Schedule 0. See instructions. Check if Schedule O contains a response or note to any line in this Part VI... . . . . . . . .. . .. . . . .. . . .. . . . . . . . .. . . . . . . . . [x]

1 a Enter the number of voting members of the governing body at .the end of the tax year. 1 a If there are material differences in voting rights among members 1--f-----------"~;; of the governing body, or if the governing body delegated broad authority lo an executive committee or s1m1lar committee, explain in Schedule 0.

b Enter the number of voling members included 1n line la, above, who are independent.. 1 b ':----:'':-----,.,.----~

2 Did any officer, director, trustee, or key employee have a family relationship or a business relahonsh1p with any other officer, director, trustee, or key employee? . . . . . . . . . . . . . . . .......... .

3 Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? ............. .

4 Did the organization make any significant changes to its governing documents

since the prior· Form 990 was filed? ...

5 Did the organization become aware_dunng the year of a significant diversion of the organization's assets?.

6 Did the organization have members or stockholders?................. . . . . . . . . . . . ........ .

7 a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? ..

b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body?. . . . . . . . . . . .. , . , .. , , , ...

8 Did the organization contemporaneously document the meetings held or written aclions undertaken during the year by the following: .

a The governing body? ..

b Each comm1tte.e with authority to act on behalf of the governing body? ..

9 Is there any ofticer, director, trustee, or key employee listed in Part VII, Section A. who cannot be reached at the

2 X

3 X

4 X 5 X 6 X

7a X

7b X

Sa X 8b X

organization's mailing address? If 'Yes;' provide the names and addresses in Schedule O 9 X Section B. Policies his Section B re uests information about o/icies not re uired b the Internal Revenue Code.

Yes No 10a Did the organization have local chapters, branches, or affiliates? ...... . 10a X

b If 'Yes,' did the organization have written policies and procedures governing the activities of such chapters, affihates, and branches to ensure their operations are consistent with the organization's.exempt purposes?. . ......... . 10b

11 a Has the orgamzat1on provided a complete copy of lfos Form 990 to all members of its governing body before hlmg the form?. 11 a X b Describe in Schedule O the process, 1f any, used by the organization to review this Farm 990. SEE SCHEDULE o j~/~)lilfliH% ifil'.f~~\tl

12a Did the organization have a written conflict of interest policy? If 'No,' go to line 13. . . . . . 12a X

b Were officers, directors, or trustees, and key employees required to disclose annually interests that could give nse to conflicts?

c Did the organization regularly and consistently monitor and enforce compliance with the pohcy? If 'Yes.' describe in Schedule O how this was done ..... .

13 Did the organization tiave a written wh1stleblower policy? ...

14 Did the organization have a written document retention and destruction policy? ...... .

15 Did \he process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substant1at1on of the deliberation and dec1s1on?

a The organization's CEO, Executive Director, or top management official

b Other officers or key employees of the organization ..... .

If 'Yes' to hne 15a or 15b, describe the process 1n Schedule O (see instructions).

16a Did the organization invest 1n. contribute assets to, or participate in a Joint venture or s1m1lar arrangement with a taxable enl1ty dUfmg the year?

b If 'Yes,' did the organization follow a written policy or procedure requiring the organization to evaluate its participation in Joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with respect to such arrangements?.. . . . . . . . . . . . . . . . . ....

Section C. Disclosure

12b X

12c

13 X

14 X

X

17 List the states with which a copy of this Form 990 1s required to be hied " NONE _________________________ _ 18 Section 6104 requires an organization to make its Forms 1023 (or 1024 1f applicable), 990, and 990-T (Sedion 501(c)(3)s only) available

for public inspection. Indicate how you made these available. Check all lhat apply.

D Own website D Another's website IRJ Upon request O Other (explain in Schedule 0)

19 Describe m Schedule O whether (and ii so, how) the orgamzahon made Its governing documents, conflict of interest policy, and fmanc1af statements available to the public dunng the tax year. SEE SCHEDULE O

20 State the name. address, and telephone number of the person who possesses the organization's books and records: ...

HEALING AMERICAN HEROES, INC. 402 W. PALM VALLEY BLVD. SUITE A ROUND ROCK TX 78664 (88 BAA TEEAOI06L 10/12115 Form 990 (2015)

0018

Form 990 (2015) HEALING AMERICAN HEROES, INC . 2 7-1607 65 9 Page 7 !:~arte:!lffiJ Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and

Independent Contractors Check if Schedule O contains a response or note to any line in this Part VII. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D

Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees 1 a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization's tax year.

• List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation. Enter .Q. in columns (D), (E), and (F) if no compensation was paid .

., List all of the organ1zat1on's current key employees, if any. See 1nstruchons for definition of 'key employee.' " List the organization's five current'highest compensated employees (other than an officer. director, trustee, or key employee)

who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any related organizations.

• Lisi all of the organization's former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations.

" List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee_ of the organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest compensated employees; and former such persons.

0 Check this box 11 neither the organization nor any related organization compensated any current officer, director, or trustee.

(C)

(A) (B) Pos1tton {do not check more (D) (E) (F) than one box, unless person Name and T 1t1e Average ,s both an officer and a Reportable Reportable Es11mated

hours d,rectorJtrustee) compensation from compensation from amount of olher per

0 :; 0 ::<: 3d 6' lhe organization

rel;)~~,f~~;Jl~C)ns compensat10n

week ::, (W-2/1099,MISC) lrom the

ii "' 3. ~ (list any = n t2.'3 3 orgamzat1on hours for c ~ J ~ 1: and related related n,:; = <> ,.. !!l organ1zat1ons 0

0tgan,za. 0~ ::,

~ <> i hons , ~ ~ below ~ <> ~ iii clotted g line} ~ it!

"' g (1) ROSALINDA BABIN 20

PRESIDENT 0 X X 36,000. 0. (2) THERESA LATTIMORE________ _ 5

VICE PRESIDENT 0 X X 0. 0. _(3) TARA_COZZARELLI ___________ 5 ----

SECRETARY/TREAS 0 X X 0. 0. _ (4) MARK ROBERTSON ____________ 5

DIRECTOR 0 X 0. 0. _ (5) RENE_ PERE ________________ 5

DIRECTOR 0 X 0. 0. _ (6) HENRY BARBE ______________ __ 5 __

DIRECTOR 0 X 0. 0.

_m ---------------------------

-~ ----------------------- ----

-~ ----------------------- ----(10) -------------------------- ----(11) ----------------------- ----(12) --------------------------(13) -------------------------- ---(14) -------------------------- ----

0.

0.

0.

0.

0.

0.

BAA TEEAOI07L 10112115 Form 990 (2015)

0019

Form990(2015) HEALING AMERICAN HEROES, INC. 27-1607659 Page8

~~ffi~lffilll\1 Section A. Officers, Directors, Trustees, Kev Emplovees, and Hiahest Compensated Emolovees (continued) (B) (C)

(A) Position

(D) (E} (F) Average (do not check more than one

Name and title hours box. unless person is both an Reportable Reportable Estimated per officer and a director/trustee) compensabon from compensation irom amount of other week

(list any 0 = ::, 0 ; .. ;i; ,, \he organization related organizations compensation

~~ (/1 ~~ ~

(W-211099-MISC) (W-211099-MISC) from the hours "" 3, for I:: 0

~ organization

~ ~ = ~ ~"' 111 and related related (t>"'

l;j"!!! g "O

Q 1 organizations arganiza '!!.. .Q · hons -2 £ "' below ~

C, .. dolled (I>

::,

hne) Cl} s ~ "' a.

(15) ------------------------------· (16} ------------------------------(17) ------------------------ -----(18) ------------------------------(19) ------------------------ -----(20) ------------------------------(21) ------------------------------(22) ------------------------------(23) ------------------------------(24) ----------------------- ----

(25) ------------------------------1 b Sub-total............................................... i,. 36,000. O. O.

c Total from continuation sheets to Part VII, Section A. . . . . . . . . . . . . . . . . . . . . . . i,. O , O , O , d Total (add lines 1b and 1c)............. . .......................... i,. 36 000. O. O.

2 Total number of individuals (including but not hm1ted to those listed above) who received more than $100,000 of reportable compensation

from the organization i,. Q ·

Yes No

3 Did the or~arnzation list any former officer, director, or trustee, key employee, or highest compensated employee on line la. If 'Yes,' complete Schedule J for such individual ................................................... .

4 For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If 'Yes' complete Schedule J for such individual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............. . 4 X

5 Did any person listed on line 1 a receive or. accrue compensation from any unrelated organization or individual ;;iii!'!il!! ~ill" !l!lli!film: for services rendered to the organization? If 'Yes,· complete Schedule J for such person. . . . . . . . . . . . . . . . . . . . . . 5 X

Section B. Independent Contractors · 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of

compensation from the organization. Report compensation for the calendar year ending with or within the organization's 1ax year.

(A) D . {B) . (C) Name and business address escnplton of services Compensation

PRODUCTION MANAGEMENT GROUP 7190 COLUMBIA GATEWAY DRIVE #300 COLUMBI PRINTING/PROD JEREMY SQUIRE & ASSOCIATES 39 GARRETT STREET WARRENTON, VA 20186 COORDINATE MAIL PROG DIRECT MAIL PROCESSORS 1150 CONRAD COURT HAGERSTOWN, MD 21740 CAGING EDGEMARK PARTNERS 4530 COX ROAD #305 GLEN ALLEN, VA 23060 PRINTING/PROD

2 Total number of independent contractors (including but not limited lo those listed above) who received more than

$100,000 of compensation from the organization>- 4 BAA TEEA0108L 10/12/15

842,783. 456 090. 109 257. 165 803.

Form 990 (2015)

0020


lP~ml.!ij Statement of Revenue Check if Schedule O contains a response or note to an.;..y_l_in_e_i_n_t_h_1s_P_ar_t_V~l_ll_._. _ .. _._·_· ._._._._. -~------·-·~· _ .. _._._. _ .. _._. _. ·-·-·-=D=-

.. ::, C ., ~ a: .. 0 -~ .,

(/)

E e "' 2 0.

b Membership dues ..

c F undraising events ..

d Related organizations ..

e ·Government grants (contributions)

t All other contnlmllons, gifts, grants, and

1 C

1d 1e

similar amounts not included above . . . ..._1_! ,__-=3_,_,3'-'6,.,2:J....:...:c...:..,... g Noncash contnbuhons included in lines la-If: $ ______ _ h Total. Add lines 1 a-1f ....... , ..................... ..

2a

(A) (B) (C) (D) Total revenue Related or Unrelated Revenue

exempt business excluded from tax function revenue under sections

512-514'

------------------~--------------~--------------~-------b ------------------~--------------~----------------------C ------------------~------~------------------------------d ------------------~--------------~----------------------e ------------------~--------------~--------------~-------! All other program service revenue. .

g Total. Add lines 2a-2f ........... . .. 3 Investment income (including dividends, interest and

other similar amounts) . . . . . . . . . . . . . . . ..,. 4 Income from investment of tax-exempt bond proceeds .. ~~-------+-------~--------------5 Royalties... . .......... ..

(<) Real . (u) Personal

6 a Gross rents.

b Less: rental expenses ~--------1--------1: .. ,,,, ... c Rental income or (loss)

d Net rental income or (loss) . ... 7 a Gross amount from sales· of

assets other than mventory

r-;:(,)~S;:e::c::u,:::,1::,e::-s -,--(;::11;-) O;;:t;;:h::e,:---t:;;"?,:;-~-:---:-:-:;,:t,;:-',--c:;:::c::-:::,::-::-:::;:;:t;:;:;:::;~~~:-7-7::;,;,;;,.t:-;;;;;;;;;;;;;;r,;;;;;:::;;;;;r;;w,:73

b Less: cost or other basis and sales expenses

c Gain or (loss).

d Net gain or (loss)

Sa Gross income from fundraising events (not including .. $ ---,--,,--,--,-of contributions reported on line 1 c).

See Part IV, hne 18 a b Less: direct expenses

...

f-------ff.,·

c Net income or (loss) from fundraising ev ... e_n_ts_. ----"'+.:,,,...,,.,--,--,.,---,.:;,,;,'i"'c=,-,'i,,.;;.+~+=-:-:.,..,.-,-,--...,....,,..,~

9 a Gross income from gaming activities. See Part IV. lme 19.. a

1--------;,c; b Less: direct expenses b.__ _____ ~

c Net income or (loss) from gaming act1v1t,..1e_s_. _____ .,+-~---,-----;---.,.-,,---,--,,--+-:------,----;r-----,----

10a Gross sales of inventory, less returns and allowances a

1---------i b Less: cost of goods sold. b.__ _____ -1

c Net income or (loss) from sales of inventory. .. ~----'-~•_sc_e_u_on_e_ou_s_R_e_ve_n_ue _____ ~ __ a_us_in_•_s_s_c_oo_•_-f;{t· ·

1a ------------------~----~---------~--------------~-------b ------------------~--------------1-----------------------C ------------------~--------------~--------------~-------d All other revenue

e Total. Add Imes lla-lld. .. 2 Total revenue. See instrucbons. ... 3 431 306. 0. 0, 68' 522.

BAA fEEAOl09L 10/12115 Form 990 (2015)

0021

Form 990 (2015) HEALING AMERICAN HEROES 1 INC. 27-1607659 Page 10 !;Bamff®/i1 Statement of Functional Expenses Section 501(c)(3) and 501(c)(4) or anizations must complete all columns. All other o~ anizations must com lete column (A).

Check if Schedule O contains a response or note to any line in this Part IX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

(A) (B) (C) Do not include amounts reported on lines Total expenses Program service Management and 5b, 7b, Sb, 9b, and 10b of Part VII/. expenses general expenses

1 Grants and other assistance to domestic organizations and domestic governments. See Part IV. line 21 ....................... .

2 Grants and other assistance to domestic individuals. See Part IV, line 22............ 320 112. 320,112.

3 Grants and other assistance to foreign i------~----t----~--organizations, foreign .governments, and for· eign individuals. See Part IV, lines 15 and 16 1--------+--------

: ~~~e;~~!~~n10o?~~~:e:e;~;;~;, · ctir~~·t;;~,' · 1----------+--------

trustees, and key employees ............... 1----__::3..c:6..J.-::.O..:;.O_:;,O-'-.+---........c2c.c5~2'""0-"0--'.-+-----'3"-'-6'""0'"'0'"'.+------'-7""'2=-0"-0.::...:.... 6 Compensation not included above, to

disqualified persons (as defined under section 4958(f)(l )) and persons described in section 4958(c)(3)(B) .................. . 0. 0. 0. 0.

7 Other salaries and wages .................. 1----------+--------+--------+--------8 Pension plan accruals and contributions

(include section 401 (k) and 403(b) employer contributions) ............ .

9 Other employee benefits ................... 1-----------------+--------+--------10 Payroll laxes ...................... . 2 754. 1 928. 275. 551. 11 Fees for services (non-employees):

a Management ........................... .

b Legal ... , ......................... . 5 500. 5 500. c Accounting ......................... . 22 945. 22 945. d Lobbying .................... , ... , ....... .. e Professional fundraising services. See Part IV, line 17 .• ' t------6-5_9_8_2 __ ,.""},""itfm:]f""lW"'tl1!m""1MLi""1lfiiiilhm, ;;;:;f.;!;';-;;:~;;;::;;;;;;mi;;:ilf'"";;;::$tl\11:;;;~l;;;,;ii7-'!i1"";1f""i~""~'=;F,--=:;:;,;r,;l"'.!!lm;l!!:;;;ml""liL""it;:ci~----6-5--9-8_2_. f Investment management fees ...... .

g Other. (If line l lg amount exceeds 10% of line 25, column (A) amount, list lme I lg expenses on Schedule O.$CH. F-___ 3_4_6~4_0_2_. +-___ 3_0_1~0_4_0_. 1-----4_5~3_6_2--;. ______ _

12 Advertising and promotion. ........... .

13 Office expenses . . . ........... .

14 Information technology ....... , ............ .

15 Royalties.... . ........... .

16 Occupancy ..

17 Travel. ........ .

18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......................... .

19 Conferences, conventions, and meetings., ..

20 Interest . . . . . . . . ...................... .

21 Payments to affiliates ............. , .. , .... .

22 Depreciation, depletion, and amortization .. .

23 Insurance . . . . . . .................. . 24 Other expenses. Itemize expenses not

covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule 0.} ................ .

10 464. 2 133. 8 331.

a DIRECT MAIL PRODUCTION AND SVC __ +---=..,_,.'""'-"'-'-'""""'-'+---~=-<--'=-'-.=...,+-----==-<-.,.....=-'-+---~"-"-'"--'-'~""'--1 158 735. 845 876. 127 461. 185 398. b POSTAGE AND SHIPPING ________ +-----=-=~='--1----~~~~+---~~~=-'-+---~~~~~ 942 829. 688 265. 103 711. 150 853. c CAGING _________________ ...---~=-="'-'--'--"'-"-'-4-----=-='-'--=~"-'-l---~==-'-==-=--'+----==-"..:.:'-"-''-112 716. 82 283. 12 399. 18 034. d LIST RENTAL ______________ -+----~~=""-1----~~~~+----~~~..,...---~~~~ 90 552. 66 103. 9 961. 14 488. e All other expenses .................... .

25 Total functional expenses. Add lines 1 through 24e ..

26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check- here ,.. ~ if following SOP 98-2 (ASC 958-720) .. , ........... .

BAA

129 989. 45 780. 3,244,980. 2,378 720.

2,765,643. 2,018,920. TEEAOI IOL 11/19/15

67 580. 16 629. 407,125. 459,135.

304;221. 442,502. Form 990 (2015)

0022

Form 990 (2015) HEALING AMERICAN HEROES, INC. .· (W.iil Balance Sheet

Check if Schedule O contains a response or note to any line in this Part X ...

1 Cash - non-interest-bearing ............. :

· 2 Savings and temporary cash investments ................................ .

Ill .... (I)

J

Ill .!!! = '.l5 Ill ::I

IJ) Q) (.) c:: Ill ~ Ill "O c:: :::i

I.I,. ... 0 $ &: IJ)

< ... Q) z

BAA

3 Pledges and grants receivable, net.

4 Accounts receivable, nel ......... .

S Loans and other receivables from current and former officers, directors,

~~~l iF~t ~ezh!:TJ!otes: .~nd. hi.gh~st comp~nsate~ _em.pl~y-ees._ c_omplete.

6 Loans and other receivables from other disqualified persons (as defined under section 4958(1)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501 (c)(9) voluntary employees' ber.ief1ciary organizations (see instructions). Complete Part II of Schedule L

7 Notes and loans receivable, net. .......... ······ ............. , . 8 Inventories for sale or use ................. ······· .,, ······ ... '''' ..... , .. ,. 9 Prepaid expenses and deferred charges .... ............ , ..... , .. ,, ,, ...

10a Land, buildings, and e~ipment: cost or other basis. Complete Part 1(1. of Sc edule Q . . . . . . ............ 10a

b Less: accumulated depreciat10n ... 10b 2 814. 11 Investments - publicly traded securities ..

12 Investments - other securities. See Part IV, hne 11 .....

13 Investments - program-related. See Part IV, line 11 .....

14 Intangible assets. . ·············· ... , ............. 15 Other assets. See Part IV, line 11. .... ................. 16 Total assets. Add lines 1 through 15 (must equal line 34) ........ 17 Accounts payable and accrued expenses.

18 Grants payable . . . . . . . . . . . . '

19 Deferred revenue .

20 Tax-exempt bond lrab1lr\tes.

21 Escrow or custodial account liability. Complete Part IV of Schedule D.

22 Loans and other payables to current and former officers, directors, trustees,

~1m~leit~o~~~rit~~ti~e~urr:rnsated employe_es,_ ~nd d'.squali~i.ed .persons ...

23 Secured mortgages and notes payable to unrelated .third parties .....

24 Unsecured notes and loans payable to unrelated third parties ....

25 Other habiht1es (including federal income tax, payables to related third parties, and other liabihlies not included on lines 17-24), Complete Part X of Schedule D

26 Total liabilities. Add lines 17 through 25 ..

Organizations that follow SFAS 117 (ASC 958), check here .. ~ and complete lines 27 through.29, and lines 33 and 34.

27 Unrestricted net assets ..... , ..... 28 Temporarily restricted net assets ..

29 Permanently restricted net assets ..

Organizations that do not follow SFAS 117 (ASC 958), check here ,. D and complete lines 30 through 34 .

30 Capital stock or trust principal, or current funds.

31 Paid-in or capital surplus, or land, building, or equipment fund.

32 Retained earnings. endowment. accumulated income, or other funds

33 Total net assets or fund balances

34 Total liabrlibes and net assets/fund balances

TE.E.AOlllL 10112/15

27-1607659 Page 11

(A) Beginning of year

287 626. 2

3

60,318. 4

5 764. lOc 11

12 13 14 15

355 332. 16

323 455. 17 18 19

20 21

•. . . . . : ,: ·:.

22 23 24

25 26

30 31 32

31 877. 33

355 332. 34

(B) End of year

439 985.

88,213.

4 481.

534 900. 316 697.

:;::.;i.: .. · .·~;:~/7

·'.J/'..'.!~~JIBHtmrii::.~·.i

218 203. 534 900.

Form 990 (2015)

0023


l:~!iYtilJ Reconciliation· of Net Assets Check if Schedule O contains a response or note to any line in this Part XI. ... .................................. n

Total revenue (must equal Part VIII, column (A),Jine 12).... . ................... .

2 Total expenses (must equal Part IX, column (A), line 25) ................................................ . 2

3 Revenue less expenses. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........... . 3 4 Net assets or fund balances at beginning of year (must equal Part X. line 33, column (A)) .... 4

5 Net unrealized gains (losses) on investments ..... 5 6 Donated services and use of facilities ... 6 7 Investment expenses ............. . 7 8 Prior period adjustments .... , ........... . 8

9 Other changes in net assets or fund balances (explain in Schedule 0) . . ......... . 9 10 Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33,

column (8)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......... . 10 !;R[~J~ Financial Statements and Reporting

Check if Schedule O contains a response or note to any line in this Part XII ....

Accounting method used to prepare lhe Form 990: 0 Cash ~Accrual Oother

If the organization changed its method of accounting from a prior year or checked 'Other,' explain in Schedule 0.

2 a Were the organization's financial statements compiled or reviewed by an independent accountant? ................... .

If 'Yes,' check a box below to indicate whether the financial statements for the year were compiled or reviewed on a s~arate basis, consolidated basis, or both: LJ Separate basis O Consolidated basis O Both consolidated and separate basis

b Were the organization's financial statements audited by an independent accountant? ................................. .

If 'Yes,' check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both:

~ · Separate basis D Consolidated basis D Both consolidated and separate basis

c If 'Yes' to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?. ................. .

If the organization changed either its oversight process or selection process during the tax year, explain in Schedule 0.

3a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMS Circular A- 133? . .. . .. . .. .. .. . .. . . .. . .. . . . . . ................................. .

b If 'Yes,' did the organization undergo the required audit or audits? If the organization did not undergo lhe required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits ...

BAA

TEEAOJ 12L 10120115

3 431 306. 3,244 980.

186 326. 31 877.

0.

218 203.

3a X

3b Form 990 (2015)

0024

OMS No. 1545-0047

SCHEDULE A (Form 990 or 990-EZ)

Public Charity Status and Public Support Complete if the organization is a section 501 (c)(3) organization or a section

4947(a)(1) nonexempt charitable trust . 2015 .. Attach to Fonn 990 or Form 990-EZ.

Department of the Treasury tnternal Revenue Service

,.. Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

Name of lhe organization HEALING AMERICAN HEROES, INC. E!Dployer ldenUllcallon number

DBA HELP OUR WOUNDED 27-1607659 Ranim!lll Reason for Public Charit Status All or anizations must com See instructions. The organization is not a private foundation because ii is: (For lines 1 through 11, check only one box.)

1 ~ A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i).

2 A school described in section 170(b)(1)(A)(ii). (Attach Schedule E (Form 990 or 990-EZ).) . .

3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

4. A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's

name, city, and state: ·

5 O An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1XA)(iv). (Complete Part II.) ·

6 BA federal, state, or local government or governmental unit described in section 170(b)(1)(A){v). 7 An organization that normally receives a substantial part of its support. from a governmental unit or from the general public described

in section 170(b)(1)(A)(vi). (Complete Part II.) 8 0 A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

9 lfil An organization that normally receives: (1) more than 33-1/3% of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions - subject to certain ·excephons, and (2) no more than 33-1/3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part Ill.) ·

10 B An organization organized and operated exclusively to test for public safely. See section 509(a)(4).

11 An organization organized and operated exclusively for the benefit of, lo perform the functions of, or lo carry out the purposes of one or more publicly supported organizations described in section.S09(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box in lines 1 la through 1 ld that describes the type of supporting organization and complete lines 1 le, l 1f, and llg.

(A)

(B)

(C)

(D)

(E)

a O Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must · complete Part IV, Sections A and B.

b O Type II, A supporting organization supervised or controlled in ·connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C. .

c O Type Ill functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E. .

d O Type IHnon-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V.

e O Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type Ill functionally integrated, or Type Ill non-functionally integrated supporting organization.

f Enter the number of supported organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . j g Provide the following information about the supported organization(s). .._ ____ _,

(i) Name of supported organ1zahon

(Ii) EIN (iii) Type of organ,zation (described on Imes 1-9

above (see instructions))

(iv) Is the (v) Amount of monetary organization listed sup'port (see instructions) in your governing

dorument?

Yes No

(vi) Amount ol other support (see instructions)

Total BAA. For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. Schedule A (Form 990 or 990-EZ) 2015

TEEA0401L 10ll2/15

0025

ScheduleA(Form990or990-EZ)2015 HEALING AMERICAN HEROES, INC. 27-1607659 [F.¥;atffilUlijjSupport Schedule for Organizations Described in Sections 170(b)(1)(AXiv) and 170(b)(1XA)(vi)

(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part Ill. If the organization fails to qualify under the tests listed below_. please complete Part Ill.)

Section A. Public Su ort

Page 2

Calendar year (or fiscal year beginning in) ,. (a) 2011 (b)2012 (c) 2013 (d) 2014 (e) 2015 (f) Total

1 Gifts, grants, contributions, and membership fees received. ,Do not include any 'unusual grants.) .....

2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf .............. .

3 The value of services or facilities furnished by a governmental unit to .the organization without charge .. .

4 Total. Add Jines 1 through 3 .. .

5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included en line l that exceeds 2% cf the amount shown on line 11, column (f) ..

6 Public support. Subtract line 5 from line 4 .................. .

Section B. Total Su Calendar year (or fiscal year beginning in) ,..

(a) 2011 (b) 2012 (c) 2013 (d) 2014 (e) 2015 (t) Total

7 Amounts from line 4 ......... .

8 Gross income from interest, dividends, payments received en securities loans, rents, royalties and income from similar sources .......... .

9 Net income from unrelated business activities, whether er not the business is regularly carried on. . . .. .......... .

10 Other income. Do not include gain or loss from the sale cf cap ital assets (Explain in Part VI.) .................... .

11 ih~~a~gshu~go~.'. Ad~ Jine_s 7_ ... .

12

13 First five years. II the Form 990 is for the crganizalion's first, second, third, fourth, or fifth tax year as a seclion 501 (c)(3) organization, check this box and stop here .................................................................. .

Section C. Com utation of Public Su ort Percenta e 14 Public support percentage for 2015 (line 6, column (f) divided by line 11, column (f)) ..

15 Public support percentage from 2014 Schedule A, Part II, line 14 ..

14 %

15 %

16a 33-1/3% support test- 2015. If the organization did not check the box en hne 13, and line 14 is 33-1/3% or more, check this box and stop here. The organization qualifies as a publicly supported organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . "" 0

b 33-1/3% support test - 20i4. If the organization did not check a box on line 13 er 16a, and lme 15 is 33-1/3% er more, check this box and stop here. The organization qualifies as a publicly supported organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . "" D

17a 10%-facis-and-circumstancestest- 2015. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and 1f the organization meets the 'facts-and-circumstances' test, check this box and stop here. Explain in Part VI how the organization meets the 'facts-and-circumstances' test. The organization qualifies as a. publicly supported organization ..... .

b 10%-lacts-and-circumstances test - 2014. If the organization did not check a box on line 13, 16a, 16b, er 17a, and line 15 is 10%or more, and if the organization meets the 'facts-and-circumstances' test, check this box and stop here. Explain in Part VI how the organization meets the 'facts-and-circumstances' test. The organization qualifies as a publicly supported organizatiol'). ...

18 Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and'see instructions ... :a BAA Schedule A (Form 990 or 990-EZ) 2015

TEEA0402L 10112/15

0026

Schedule A (Form 990 or 990-EZ) 2015 HEALING AMERICAN HEROES, INC. 27-1607659 Page 3

!i~i'ilUJIISupport Schedule for Organizations Described in Section 509(a)(2) · · (Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public Su ort Calendar year (or fiscal year beginning in) .. (a) 2011 (b) 2012 (c) 2013 (d) 2014 (e) 2015 (t) Total

1 Gifts, grants, contributions and membership fees received: (Do not include any 'unusual grants.') ........ . 1,827,131. 1,895,373. 2 483 635. 3 208 199. 3 362 784. 12 777,122.

2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose. ......... .

3 Gross receipts from activities that are not an unrelated trade or business under section 513.

4 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf ................... ..

5 The value of services or facilities furnished by a governmental unit to the organization without charge .. .

0.

0.

0.

0. 6 Total. Add lines 1 through 5 .. . 1,827 131. 1 895,373. 2 483 635. 3 208 199. 3 362,784. 12,777,122. 7 a Amounts included on lines 1 ,

2, and 3 received from disqualified persons ......... .

b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1 % of the amount on line 13 for _the year .................. .

c Add lines 7a and 7b ....... , ..

8 Public support. (Subtract line 7c from line 6.) .............. .

Sf BTtlS rt ec 10n . oa UDDO

calendar year (or fiscal year beginning in) ..

9 Amounts from line 6 .......... 10 a Gross income from interest dividends,

payments received on securities loans, rents, royalties and income from similar sources. .......... ,., ....

b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 ..

c Add lines 1 Oa and 1 Db ...... .. 11 Net income from unrelated business

activities not included in line l Ob, whether or not the business is regularly carried on ............. , .

12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) .....................

13 Total support. (Add lines 9, 10c, 11, and 12.) .............

0.

{a) 2011

1 827 131.

0.

1 827,131.

0. o, 0. 0. ·o.

0. 0.

12 777,122.

{b) 2012 (c) 2013 (d) 2014 (e) 2015 (f) Total

1 895,373. 2 483 635. 3,208,199. 3,362,784. 12 777 122.

0 .

0. 0. 0. 0 . 0. 0.

0.

0.

1 895 373. 2 483 635. 3,208 199. 3 362 784. 12;777, 122. 14 First f_ive years. If the Form 990 1s for the organization's first. second. third, fourth, or fifth tax year as a section 501 (c)(3)

orgarnzatlon, check this box and stop here: ................................................................................... .., 0 Section C. Com utation of Public Su ort Percenta e 15 Public support percentage for 2015 (line 8, column (f) divided by line 13. column (f)) ............ . 15 100.00 % 16 Public support percentage from 2014 Schedule A, Part Ill, line 15.. . .............. . 16 100.00 %

Section D. Com utation of Investment Income Percenta e 17 Investment income percentage for 2015 (line 10c, column (f) divided by line 13, column (f)). . . . . . . . . . . 17 O. 00 % 18 Investment income percentage from 2014 Schedule A, Part Ill, line 17................... . . . . . . . . . . . . . 18 O. 00 % 19a 33-1/3% support tests - 2015. If the organization did not check the box on line 14, and line 15 is more than 33-1/3%. and line 17

is not more than 33-1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ........ .., igj b 33-1/3% support tests - 2014. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33-1/3%, and

line 18 is not more than 33-T/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... ,. 0 20 Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions .......... ,. 0

BAA TEEA0403L 10112115 Schedule A (Form 990 or 990-EZ) 2015

0027

ScheduleA(Form990or990-EZ)2015 HEALING AMERICAN HEROES, INC. 27-1607659 Page4

!jg_~AUI Supporting Organizations (Complete only if you checked a box in line 11 on Part I. If you checked l1 a of Part I, complete Sections A and B. If you checked 11 b of Part I, complete Sections A and C. If you checked 11 c of Part I, complete Sections A, D, and E. If you checked 11 d of Part I, complete Sections A and D, and complete Part V.)

Section A. All Supporting Organizations

Are all of the organization's supported organizations listed by name in the organization's governing documents? If 'No, 'describe in Part VJ how the supported organizations are designated. If designated by class or purpose. describe the designation. If historic and continuing relationship, explain. ..

2 Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(l) or (2)? If 'Yes,' explain in Part VI how the organization determined lhat'the supported organization was described in section 509(a)(1) or (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................... .

3a Did the organization have a supported organization described in section 501 (c)(4), (5), or (6)? If 'Yes,' answer (b) and (c) below. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ .

b Did the organization confirm that each supported organization qualified under section 501 (c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)7 If 'Yes,' describe in Part VI when and how the organization made the determination . ....................................................................................... .

c Did the organization ensure that all support lo such organizations was used exclusively for section 170(c)(2)(B) purposes? If 'Yes,' explain in Part VI what controls the organization put in place to ensure such use ............. .

4a Was any supported organization not organized in the United Slates ('foreign supported organization')? If 'Yes' and if you checked I la or 11b in Parl /, answer (b) and (c) below .................................................... .

b Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If 'Yes,' describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations .................................................. .

c Did the organization support any foreign supported organization that does not have an IRS determination under sections 501 (c)(3) and 509(a)(l) or (2)? If 'Yes,' explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes . ............. .

5 a Did the organization add, substitute, or remove any supported organizations during the tax year? If 'Yes.' answer (b) and (c) below (if applicable). Also, provide detail in Patt VI, including (i) the names and EJN numbers of the supported organizations added, substituted, or removed; (ii) the reasons for each such action; (iii) the authority under the organization's organizing document authorizing such action; and (iv) how the action was accomplished (such as by amendment to the organizing document) ....................................................................... .

b Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document? .............................................................................. .

c Substitutions only. Was the substitution the result of an event beyond the organization's control? ............. .

6 Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (i) its supported organizations, (ii) individuals that are part of the charitable class benefited by one or more of its supported organizations, ·or (iii) other supporting organizations that also support or benefit one or more of the filing organization's supported organizations? If 'Yes,' provide detail in Part VI.......... . ................. .

7 Did the organization provide a grant, loan. compensation, or other similar payment to a substantial contributor (defined in section 4958(c)(3)(C)), a family member of a substantial contributor, or a 35% controlled entity with regard to a substantial contributor? If 'Yes,' complete Part I of Schedule L (Form 990 or 990-EZ) . .

8 Did the organization make a loan to a disqualified g_erson (as defined in section 4958) not described in line 7? If 'Yes.· complete Part I of Schedule L (Form 990 or 990-EZ) ............................................................... .

9 a Was the orgarnzalion controlled directly or indirectly at any time during the tax year by one or more disqualified persons. as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If 'Yes,' provide detail in Part VI . . . . . . . . . . . . . . . ........ .

b Did one or more disqualified persons (as defined in line 9a) hold a controlling interest in any entity in which the supporting organization had an interest? If 'Yes,' provide detail in Part VI .. ........................ .

c Did a disqualified person (as defined 1n line 9a) have an ownership interest 1n, or denve any personal benefit from, assets in which the supporting organization also had an interest? If 'Yes,' provide detail in Part VI . ............... .

1 O a Was the organization subject to the excess business holdings rules of section 4943 because of section 4943(1) (regarding certain Type II supporting organizations, and all Type Ill non-functionally integrated supporting organizations)? If 'Yes,' answer 10b below. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10a

lc=:=:i"""=ls==·

b Did the orgarnzalion, have any excess business holdings in the lax year? (Use Schedule C. Form 4720, to determine .'·;,,::":'; ~~~ r:e!'.J whether the organization had excess business holdings.).... . . . . . . . . . . . . . . . . . . . . . . . . . . 10b

BAA TEEA0404L 10112/15 Schedule A (Form 990 or 990-EZ) 2015

0028

INC. 27-1607659 Page 5

11 Has the organization accepted a gift or contribution from any of the following persons?

a A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization? ...................................................... ,,............... 11a 1---..--..-

b A family member of a person described in (a) above?............................................................... 11b t----1--..--

c A 35% controlled entity of a person described in (a) or (b) above? If 'Yes' lo a, b, or c, provide detail in Part Vl........ 11c

Section B. Type I Supporting Organizations

1 Did 1he directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a ma1ority of the organization's directors or trustees at all limes during the tax year? If 'Na,' describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization's activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were a/located among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year ........................................... , ........................ , ... .

2 Did the organization operate for the benefit of any SUP.ported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If 'Yes,' explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised, or controlled the supporting organization. , .... , , .................................................... , ........... , .. , ........... .

Section C. Type II Supporting Organizations

1 Were a majority of the organization's directors or trustees during the tax year also a majority of the directors or trustees of each of the organization's supported organization(s)? If 'No,' describe in Part VI haw control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s) .....

Section D. All Type Ill Supporting Organizations

Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization's tax year, (i) a written notice describing the type and amount of support provided during the prior tax year, (ii) a copy of the Form 990 that was most recently filed as of the date of notification, and (iii) copies of the organization's governing documents in effect on the date of notification, to \he extent not previously provided?.

2 Were any of the organization's officers, directors, or trustees either (1) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? if 'No,· explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s) ....

3 By reason of the relationship described in (2). did \he organization's supported organizations have a significant voice in the organization's investment policies and in directing the use of the organization's income or assets at all times during the tax year? If 'Yes,' describe in Part VI the role the organization's supported organizations played in this regard . .............. , ..................................................................................... .

Section E. Type Ill Functionally-Integrated Supporting Organizations

1 Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions):

a D The organization satisfied the Activities Test. Complete line 2 below.

b D The organization is the parent of each of its supported organizations. Complete line 3 below.

c D The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions). ·

2 Activities Test Answer (a) and (b) below.

a Did substantially all of the organization's activities during the tax year directly further the exempt purposes of'the supported organization(s) to which the organization was responsive? If 'Yes.' then in Parl VI identify those supporled organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................. .

b Did the activ1t1es described in (a) constitute activities that, but for the organization's involvement, one or more of the organization's supported organization(s) would have been engaged 1n? If 'Yes,' explain in Part VI the reasons for the organization's position that its supported organization(s) would hav.e engaged in these activities but for the organization's involvement ................ ·:.................. . . . ................................... .

3 Parent of Supported Organizations. Answer (a) and (b) below.

a Did the organization have the power to regularly appoint or elect a majority of 1he officers, directors, or trustees of each of the supported organizations? Provide details in Part VJ ................................................. .

b Did \he organization exercise a substantial degree of direction over the policies, programs, and activities of each of its supported organizations? If 'Yes,' describe in Part VJ the role played by the organization in this regard........ 3b

BAA TEEAD405L 1011211s Schedule A (Form 990 or 990,EZ) 2015

0029

Schedule A (Form 990 or 990-EZ) 2015 HEALING AMERICJ.I..N HEROES, INC. 27-1607659 Page 6

j:ea~•I Type Ill Non-Functionally Integrated 509(a)(3) Supporting Organizations 1 D Check here if the organization satisfied the Integral Part Test as a qualifying trust on November 20, 1970. See instructions. All

other Type Ill non-functionally integrated supporting organizations must complete Sections A through E.

Section A - AdJ'usted Net Income (A) Prior Year (B) Current Year (optional)

Net short-term capital gain ......... .

2 Recoveries of prior-year distributions. ..

3 Other gross income (see instructions) ..

4 Add lines 1 through 3 ............... .

5 Depreciation and depletion ..................................... .

6 Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for

2

3

4

5

production of income (see instructions} ............... , . , . . . . . . . . . . . . . . . . . . . . . . . . 6

7 Other expenses (see instructions} . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8 Adjusted Net Income (subtract lines 5, 6 and 7 from line 4)... . . . . . . . . . . . . . . . . . . . . 8

Section B - Minimum Asset Amount

1 Aggregate fair market value of all non,exempt-use assets (see instructions for short tax year or assets held for part of year):

a Average monthly value of securities. ............................................ .

b Average monthly cash balances .... · ............................................ .

c Fair market value of other non-exempt-use assets ......................... .

d Total (add lines la, lb, and le) ........................................... .

e Discount claimed for blockage or other factors (explain in detail in Part VI):

2 Acquisition indebtedness applicable to non-exempt-use assets ................... .

3 Subtract line 2 from line 1 d ..................................................... .

4 Cash deemed held for exempt use. Enter 1-1 /2% of line 3 (for greater amount, see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............. .

5 Net value of non-exempt-use assets (subtract line 4 from line 3). . ........... .

6 Multiply line 5 by .035. . .. . . .. .. .. . . .. .. .. . . .. .. .. .. .. . . . .. . . . .. .. ..........

7 Recoveries of prior-year distributions..... . . . .................................. .

8 Minimum Asset Amount (add line 7 to line 6) ................................... .

Section C - Distributable Amount

1 Adjusted net income for prior year (from Section A, line 8, Column A). ............ .

2 Enter 85% of line 1 .............................. , ............................. .

3 Minimum asset amount for prior year (from Section B, line 8, Column A) .......... .

4 Enter greater of line 2 or line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........ .

2 3

4

5

6

7

8

1

2

3

4

5 Income tax imposed in prior year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

(A) Prior Year (B) Current Year (optional)

Current Year

7 D Check here if the current year is the organization's first as a non-functionally-integrated Type Ill supporting organization (see instructions). ·

BAA Schedule A (Form 990 or 990-EZ).2015

TEEA0406L I 0112115

0030

27-1607659 Page 7

ani:zations continued

. Amounts paid to supported organizations to accomplish exempt purposes .... , . , ...... , ............ , .... , ..... ,

2 ~mounts paid_ to perform activity Jhat directly furthers exempt purposes of supported organizations, in excess ot income from act1v1ty . , ......................................................................... .

3 Administrative expenses paid to accomplish exempt purposes of supported organizations ................. , .... .

4 Amounts paid to acquire exempt-use assets ......... , ... , ............................................... , .... .

5 Qualified set-aside amounts (prior IRS approval required). . . . . . . . . . . . . . . . . . . . . . . . . . ............ .

6 Other distributions (describe in Part VI). See instructions ........................................... : ......... .

7 Total annual distributions. Add lines 1 through 6 ..................................... ,., .. , .... ,., .... ,, .... .

8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions ...................... , ..................... , ................................. , ..

9 Distributable amount for 2015 from Section C, line 6 ... , .. , .. , ....... , .. , ..... , .. , ... , ....................... .

10 Line 8 amount divided by Line 9 amount., ................ : ........................ , ......... ,, .. , ... , ... ,, ..

(i) (ii) Section E - Distribution Allocations (see instructions) Excess Underdistributions

Distributions Pre-2015

1 Distributable amount for 2015 from Section C, line 6 ........... . 2 Underdistributions. if any, for years prior to 2015 (reasonable

cause required - see instructions) ............ , ................ .

e From 2014 ...................... , ..

f Total ·ot lines 3a through e .... , ........................ .

g Applied to underdistributions of prior years ............... .

h Applied to 2015 distributable amount. .............. , .. , ........ .

i Carryover from 2010 not applied (see instructions) .............. .

j Remainder. Subtract lines 3g, 3h, and 3i from 3f .............. .

4 Distributions for 2015 from Section D, line 7: $

a Applied to underdistributions of prior years .................. .

b Applied to 2015 distributable amount. ...... , ................... . c Remainder. Subtract lines 4a and 4b from 4 ............ , ....... .

5 Remaining underdistributions for years prior to 2015, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions) , ............. , ......................... .

6 Remaining underdistributions for 2015. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions). , .. , ...

7 Excess distributions canyover to 2016. Add lines 3j and 4c ... ,

d Excess from 2014. ........ , ........ .

e Exces? from 2015 .................. .

Current Year

(iii) Distributable

Amount for 2015

BAA Schedule A (Form 990 or 990-EZ) 2015

TEEA0'107L 10112/15

0031

Schedule A (Form 990 or 990-EZ) 2015 HEALING AMERICAN HEROES INC. 27-1607659 Page 8

El!5!~~-SuP.plem_ental Information. Provide the explanations required by Part 11, line _10; Par:t 11, line 17a or 17bifart II.I, line ]2; Part IV, Section A, Imes 1, 2, 3b, 3c, 4b, 4c, Sa, 6, 9a, 9b, 9c, 11 a, 11 b, and 11 c; Part IV, Section B, lines 1 and 2; Part Iv, Section C, lme 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines le, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line le; Part V, Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions.)

BAA TEEA0<108L 10/12115 Schedule A (Form 990 or 990-EZ) 2015

0032

SCHEDULED (Form 990)

Supplemental Financial Statements 0MB No. 1545,0047

.. Complete if the organization answered 'Yes' on Form 990, Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d,-11e,·11f, 12a, or 12b .

.. Attach to Form 990.

2015 Department of \he Treasury Internal Revenue Service Name of the organization

.. Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990,

HEALING AMERICAN HEROES, INC. DBA HELP OUR WOUNDED 27-1607659

p'ar:\,'1lm.'.: Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered 'Yes' on Form 990, Part IV, line 6.

(a) Donor advised funds (b) Funds and other accounts

1 Total number at end of year ................

2 Aggregate value of contributions to (during year) .. .. ,,

3 Aggregate value of grants from (during year) .........

4 Aggregate value at end of year .............

5 Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's properly, subject to the organization's exclusive legal control? ..................... , . . . . . D Yes

6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit?, ............................................................................. 0Yes D No

iR~II Conservation Easements. Complete if the organization answered 'Yes' on Form 990, Part IV, line 7.

1 Purpose(s) of conservation easements held by the organization (check all that apply).

§ Preservation of land for public use (e.g., recreation or education) a Preservation of a historically important land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

2 Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation -easement on the last day of the tax year.

a Total number of conservation· easements .... · ............. , ............................... .

;;;'.;;,};);!; Held at the End of the Tax Year

2a b Total acreage restricted by conservation easements. ...... , ....... _ 2b c Number of conservation easements on a certified historic structure included in (a). . . . . . . . . . . . . 2 c t---t--------------d Number of conservation easements included in (c) acquired after 8/17 /06, and not on a historic

structure listed in the National Register .............. , , .. , .................................. , _2_d,__ ___________ _ 3 Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization dunng the

tax year>-

4 Number of states where property subject to conservation easement is located ..

5 Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations. and enforcement of the conservation easements it holds? .................... , ...... , ................. , . . .. .. D Yes O No

6 Staff and volunteer hours devoted to monitoring, inspecting, handling of violations, and enforcing conservation easements during the year ... 7 Amount of expenses incurred in monitoring, inspecting, handling of violations. and enforcing conservation easements during the year

... $ --------8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i)

and section 170(h)(4)(B)(ii)? ............. _ ................................................................. 0Yes

9 In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describes the organization's accounting for conservation easements. .

1Bare1!ilf.i!ll'd Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered 'Yes' on Form 990, Part IV, line 8.

1 a If the organization elected, as permitted under SF AS 116 (ASC 958). not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIII. the text of the footnote to its financial statements that descnbes these items.

b If the organization elected, as permittec;J under SF AS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: (i) Revenue included on Form 990, Part VIII, line 1. .. , ........ . -· ........... $ (ii) Assets included m Form 990, Part X ...................... . . ... ' ..... ,-. $--------

2 If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SF AS 116 (ASC 958) relating lo these items: L

a Revenue included on Form 990. Part VIII, line 1. . . . . . . . . . . . . . . . . . . . . ......... . ....... $ b Assets included in Form 990, Part X ........ : .................... . '' .... ' ...... $--------

BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990. TEEA3301L 06103/15 Schedule D (Form 990) 2015

0033

ScheduleD(Form990)2015 HEALING AMERICAN HEROES, INC. 27-1607659 Page2

[efflfll Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

3 Using the organization's acquisition, accession, and other records, check any of the tollowing that are a significant use of its collection items (check all that apply):

a § Public exhibition

b Scholarly research

c Preservation for future generations

d D Loan or exchange programs

e D Other

4 Provide a descriplion of the organization's collections and explain how they further the organization's exempt purpose in Part XIII. ·

5 During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets O O to be sold to raise funds rather than to be maintained as part of the organization's collection?.................... Yes No

l~a'~ii§ Escrow and Custodial Arrangements. Complete if the organization answered 'Yes' on Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

1 ·a ls the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X?., ......................... , ..... , ...................................................... D Yes

b If 'Yes,' explain the arrangement in Part XIII and complete the following table:

c Beginning balance ......................................... .. 1 C

d Additions during the year .................................... . 1 d e Distributions during the year................... . ............ . le

f Ending balance ................... , ..... , ................................................. . 1 f count liability? ..... 2 a Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial ac

b If 'Yes,' explain the arrangement in Part XIII. Check here if the explanation has been provided o n Part XIII .......

Amount

LJ Yes . ... 8No .... .....

IB'aml!~I Endowment Funds. Comolete if the omanization answered 'Yes' on Form 990 Part IV line 10. (a) Current year (b) Prior year (c) Two years back

1 a Beginning of year balance ......

b Contributions ..................

c Net investment earnings, gains, and losses ....................

d Grants or scholarships .........

e Other expenditures for facilities and programs ..................

f Administrative expenses . .. ... g End of year balance ....... ....

2 Provide the estimated percentage of the current year end balance (line lg, column (a)) held as:

a Board designated or quasi-endowment ,.

b Permanent endowment .. % c Temporarily restricted endowment .,. ______ %

The percentages on lines 2a, 2b, and 2c should equal 100%.

%

{d) Three years back

3a Are there endowment funds not in the possession of the organization that are held and administered for the organization by: (i) unrelated organizations. ....................... , . . . . . . . . . . . . . . . . . .............................. , ...... .

(ii) related organizations ....... , . . . . . . .................................................. .

b If 'Yes' on line 3a(ii), are the related organizations listed as required on Schedule R? ........... . 4 Describe in Part XIII the intended uses of the organization's endowment funds.

IJl~~m:~V!Flm Land, Buildings, and Equipment.

( e) Four years back

Yes No 3a(i)

3a(ii)

3b

Complete if the organization answered 'Yes' on Form 990, Part IV, line 1 la. See Form 990, Part X, line 10. Description of property

1 a Land ....

b Buildings

c Leasehold improvements ..... .

d Equipment . . . . . ........ .

eO~M.. . ........ .

(a) Cost or other basis (investment)

(b) Cost or other basis (other)

7 295.

Total. Add lines la through le. (Column (d) must equal Form 990, Part X, column (8), line IOc.) ..

BAA

TEEA3302L 10112/15

(c) Accumulated depreciation

2 814.

,..

1 (d) Book value

4 481.

4 481. Schedule D (Form 990) 2015

0034

ScheduleD(form990)2015 HEALING AMERICAN HEROES, INC. 27-1607659 Page3

JR~! Investments - Other Securities. N/A Com lete if the or anization answered 'Yes' on Form 990 Part N, line 11 b. See Form 990, Part X line 12.

(a) Description of security or category (including name o/ security) (b) Book value (c) Melhod of valuation: Cost or end-of-year market value_

(1) Financial derivatives ...... , .. , , .. , ......... , ....... ,

(2) Closely-held equity interests. .... , .................. .

(3) Other

(A)

(8) (C)

----------------------+--------+--------------------

~) - -- ---- ----- -(E) - - - -- - - - - - - - - - - -i--------;-------------------------- ---------------------1---------------------------(F)

(G)

~>--------------------------i--------;----------~-------(1) ------ --- -- --------- --- - --1--------h:::=

Total. (Colu1J1n (b) must equal Form 990, Part X. column (8) line 12.) . .. "" :· :. ~llf!ll;,-~- ·· fcfm1UIH lnvestmen.ts - Program Related. N/A

Complete 1f the organization answered 'Yes' on Form 990, Part IV, line 1 lc. See Form 990, Part X, line 13. (a) Description of investment (b) Book value (c) Method of valuation: Cost or end-of-year market value

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

Total. (Column (bJ must eaual Form 99ll Part X column (BJ hi1e 13.) . . ,.. m~t~P~luilliilli.lffiHt;;?/;f3it¾~in~t=~r¥.H€UffiJUi11~;H;;trtt~:;-#.~€filfilU~~tffilliilf IJ>.alfl1}'j!.lll!l Other Assets. N/A · · · · · Complete if the organization answered 'Yes' on Form 990, Part IV, line 1 ld. See Form 990, Part X, line 15.

(a) Description (b) Book value (1)

(2) ..

(3)

(4)

(5)

(6)

(7) (8)

(9)

(10)

Total. (Column (b) must equal Form 990, Part X, column (B) line 75.) .. ..... .... ........ ,, .. , .. , ............. ...... "" !Ba'lrf~Jt~ Other Ljabilities.

' ' Complete 1f the organization answered Yes on Form 990, Part IV, line 11 e or 11 f. See Form 990, Part X, line 25 (a) Description of liabihty (b} Book value

(1) Federal income taxes (2)

(3) (4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

Total. (Column (b) must equal Form 990, Part X, column (8) line 25.) . .. 2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's liab1hty for uncertain tax positions under FIN 48 (ASC 740). Check here 1f the text of the footnote has been provided in Part XIII.:............ . ...... , , . , .. , .SEE .. FART .. XIII. ~ BAA TEEA3303L 0£103115 Schedule D (Form 990) 2015

0035

Schedule D (Form 990) 2015 HEALING AMERICAN HEROES, INC. 27-1607659 la~l!li!H Reconciliation of Revenue per Audited Financial Statements With Revenue per Return.

Page 4

Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a. 1 Total revenue, gains, and other support per audited financial statements ................................. . 3 431 306. 2 Amounts included on line 1 but not on Form 990, Part Vlll, line 12:

a Net unrealized gains (losses) on investments .............. . 2a b Donated services and use of facilities ..... . 2b c Recoveries of prior year grants .................. . 2c d Other (Describe in Part XIII.).. . . . . . . . . ............ . 2d

..,, ............ , e Add lines 2a through 2d ................................................... . 3 Subtract line 2e from line 1. .................................... .

1---l--------3 431 306.

4 Amounts included on Form 990, Parl VIII, line 12, but not on line 1:

a Investment expenses not included on Form 990, Part VIII, line 7b .............. 1--4_a--+--------b Other (Describe in Part XIII.) ................................................ ,_4_b~-------c Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 c ,_ _______ _

5 Total ·revenue. Add lines 3 and 4c. (This must equal form 990, Part/, line 12.)............................ 5 3, 431,306. ,Fi\a~l , Reconciliation of Expenses per Audited Financial Statements With Expenses per Return.

Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a. 1 Total expenses and losses per audited financial statements ...................... , ...................... . 3,244 I 980 • 2 Amounts included on line 1 but not on Form 990, Part IX, line 25:

a Donated services and use of facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a 1---l--------

b Prior year adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............ 1--2_b _______ _

c Other losses................................................................ 2c 1---l--------

d Other (Describe in Part XIII.) . . . .. . . . .. . . .. . . . .. .. . . . .. . .. .. . . . .__2_d_,_ ______ _

., ................................ . e Add lines 2a through 2d . .................................. . !---+-------

3 Subtract line 2e from line 1. ............... .. 3 244 980. 4 Amounts included on Form 990, Part IX, line 25, but not on line 1:

a Investment expenses not included on Form 990, Part VIII, line 7b.............. 4a b Other (Describe in Part Xlll.),.......... .. . . ................ . ............. -4~b-+--------c Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........... .

5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I. line 18.) . .......................... 1--::-+---3-2_4_4_9_8_0_.

Provide the descriptions required for Part II, lines 3, 5, and 9; Part Ill, lines la and 4; Part IV. Imes lb and 2b; Part V, line 4: Part X, line 2: Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.

BAA

PART X - FIN 48 FOOTNOTE

AS OF DECEMBER 31, 2015, HEALING AMERICAN HEROES, INC HAS NO UNCERTAIN TAX POSITIONS

THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE

TAX YEARS SUBJECT TO EXAMINATION BY THE TAXING AUTHORITIES ARE THE YEARS ENDED

DECEMBER 31, 2012 THROUGH 2014.

Schedule D (Farm 990) 20·15

TEEA3304L 06/03/15

0036

SCHEDULE G (Form 990 or 990-EZ)

Supplemental Information Regarding Fundraising or Gaming Activities Complete if the organization answered 'Yes' on Form 990, Part IV, lines 17, 13, or 19, or ii the

organization entered more than $15,000 on Form 990-EZ, line 6a. .. Attach lo Form 990 or Fonn 990-EZ.

Depar(ment ot the Treasury Internal Revenue Service .. Information about Schedule G (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

0MB No. 1545-0047

Name of the organization HEALING AMERICAN HEROES, ·INC, Employer ldontlficatlon number

DBA HELP OUR WOUNDED 27-1607659 f'Ear.tiJJli Fundraising Activities. Complete if the organization answered 'Yes· on Form 990, Part IV, line 17 . . " ' ~ Form 990-EZ filers are not required to complete this part. ,

1 Indicate whether the organiwtion raised funds through any of the following activities. Check all that apply.

a l!J Mail solicitations e D Solicitation of non-government grants

b O Internet and emaH solicitations f D Solicitation of government grants

c D Phone solicitations g D Special fundraising events

d O In-person solicitations

2 a Did the organization have a written or oral agreement with any individual (including officers, directors, trustees or key employees listed in Form 990, Part Vtl) or entity in connection with professional fundraising services?................. IB]Yes 0No

b If 'Yes,' list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is to be compensated at least $5,000 by the organization.

(i) Name and address of individual (ii) Activity (iii) Did fundraiser (iv) Gross receipts (v) Amount paid to (vi) Amount paid to or entity (fundraiser) have custodi or control from activity (or retained by) ( or retained by)

of contri utions? fundraiser listed in organization column (i)

SQUIRE & ASSOC Yes No

1 39 GARRETT ST DIRECT WARRENTON VA 20186 MAIL X 3 214, 361. 456,090. 2 758 271.

2 -

3

4

5

6

'

7

8 ;.. .

9

10

Total. ................ . . . ' . . . . . ' . . . ' . ' . ' ... ······· .... . . . . . . . . . ... 3 214 361. 456 090. 2 758 271. 3 List all states in which the organization is reg1slered or licensed to sohc1t contributions or has been notified it 1s exempt from registration

or licensing.

------------·---------------------------- ------- ---------------

BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. Schedule G (Form 990 or 990-EZ) 2015 TEEA3701l 12/02/15

0037

Schedule G (form 990 or 990-EZ) 2015 HEALING AMERICAN HEROES, INC. 27-1607659 Page 2

fRa"iiUffll Fundraising Events. Complete if the organization answered 'Yes' on Form 990, Part IV, line 18, or reported more than $15,000 of fundraising event contributions and gross income on Form 990-EZ, lines 1 and 6b. List events with gross receipts greater than $5,000.

(a) Event #1 (b) Event #2 (c) Other events (d) Total·events

NONE (add column (a) through column (c))

R (event type) (event type) (total number) E V E

1 Gross receipts. N .... , .. ,.,. ,,, ., .. ... u E

2 Less: Contnbutions .. ······· ····· .....

3 Gross income (line l minus line 2).

4 Cash prizes .... ........... , .. , .... ...

5 Noncash prizes .................... ... D I

6 RenUfacility costs ...... R . . . . . . . . . . . . . . . E C T 7 Food and beverages ... ............... E X 8 Entertainment .. ,, .... , ....... , .. ..... p E N

9 Other direct expenses ........... s . . . . . . E s

10 Direct expense summary. Add lines 4 through 9 in column (d) .. ················ ............ . . . . . . . . . . ' . . ... 11 Net income summary. Subtract line 10 from line 3, column (d) .. ....... , .... , ........ , . ...... . , .. , ······· ..

l~a'm!IHI Gaming. Complete if the o~ganization answered 'Yes' on Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a.

R E V E N u E

E D X I p

R E E N C S T E

s

1 Gross revenue ....................... .

2 Cash prizes .

3 Noncash prizes. ...... ,., .. ,.

4 RenUfacility costs. . ' . . ' . . . ' . .

5 Other direct expenses ....

6 Volunteer labor ..

(a) Bingo

Yes No

7 Direct expense summary. Add lines 2 through 5 in column (d) ..

(b) Pull tabs/Instant bingo/progressive

bingo

Yes No

8 Net gaming income summary. Subtract line 7 from line 1, column (d) ........... .

(c) Other gaming

Yes No

%

..

..

(d) Total gaming (add column (a)

through column (c))

9 Enter the state(s) in which the organization conducts gaming activities: ----------------==----==--a Is the organization licensed to conduct gaming activities in each of these states?. . . . . . . . . . . . . . . . . O Yes O No b If 'No,' explain:

10a Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? ............. O Yes ONo b If 'Yes,' explain: ________________________________________________________ _

BAA TEEA3702L 06/02/ I 5 Schedule G (Form 990 or 990-EZ) 2015

0038

ScheduleG(Form990or990-EZ)2015 HEALING AMERICAN HEROES, INC. 27-1607659 Page 3 11 Does the organization conduct gaming activities with nonmembers? ................... ·.· .......................... D Yes

12 Is the organization a granter, beneficiary or trustee of a trust or a member of a partnership or other entity formed to administer charitable gaming? ...................................................... ·.· .......................... O Yes

13 a ~:~c:~:~~~:a:~~~~~~::·i~~g~~i~.~ a~ti~?. condu~~d .in: .................................................... · l1-1_3_a...,11---------%-b An outside facility .............. , ........................................... , ........................... _ 13b_ %

14 Enter the name and address of the person who prepares the organization's gaming/special events books and records:~-~-------

Name ..

Address ...

15a Does the organization have a contract with a third party from whom the organization receives gaming revenue?., ... ,

b If 'Yes,' enter the amount of gaming revenue ,received by the organization.,. $ ___________ and the amount

of gaming revenue retained by the third party.. $ __________ _

c If 'Yes,' enter name and address of the third party:

Name .. ------------------------------------------------------------1 I

Address.., 1

16 Gaming manager information:

Name ..

Gaming manager. compensation ,. $ ___________ .

Description of services provided ..

D Director/officer 0Employee 0 Independent contractor.

17 Mandatory distributions

a Is the organization required under state law to make charitable distributions from the gaming proceeds to retain the state gaming license?, ----------------------------------DYes O No

b Enter the amount of distributions required under state law to be distributed to other exempt organizations or spent in the

organization's own exempt activities during the lax year ,. $ i[F.f.[fjf~& Supplemental Information. Provide the explanations required by Part I, line 2b, columns (iii) and (v);

and Part 111, lines 9, 9b, lOb, 15b, 15c, 16, and 17b, as applicable. Also provide any additional information (see instructions). -

BAA TEEA3703L 06/02115 Schedule G (form 990 or 990-EZ) 2015

0039

SCHEDULE I (FolTTI 990)

Department of the Treasury Internal Revenue Service

Name of lhe organization

HEALING AMERICAN HERQES, INC.

Grants and Other Assistance to Organizations, Governments, and Individuals in the United States

Complete if the organization answered 'Yes' on Form 990, Part IV, line 21 or 22 . .. Attach to Form 990.

.. Information about Schedule I (Form 990) and its instructions is at www.irs.gov/form990.

:pafff'I General lnformationon Grants and Assistance

0MB No. 1545-0047

2015

Employer ldenlific:alion nUhiber

27-1607659

1 Does the organization maintain records to·substantiate the amount of the grants or assistance, the grantees· eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance?.................................................................................................. Qves IR]t-10

2 Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.

f!l?,;il:iffiiWil! Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered 'Yes' on Form 990, Part IV, line 21, for any recipient that receive·d more than $5,000. Part II can be duplicated if additional space is needed.

1 (a) Name and address of organ1za11on 01 governrnenl

0) _________________ _

~ ------------------

(3) ------------------

(4) --- - - ----- ---- ----

~ ------------------

(6) - - - - - - - - - - - - - - - - - -

(7) ------- .----------

(8) - - - - - - - - - - - - - - - - - -

(b) E.IN (c) IRC secl<on ,, applicable

(d) 1 Amount of cash granl (e) Amount ol non-cash assistance

(f) Methc1id of valuation

(boo1,, FMV. app,aisal. ol~er)

(g) Descnpt1of'\ of non-cash ass,s1ance

(h) Purpose of granl or assistance

2 Enter total number of section 501 (c)(3) and government organizations listed in the line 1 table...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ Q

3 Enter total number of other organizations listed in the line 1 table.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ O BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990. TE.E.A390IL 11/04/15 Schedule I (Form 990) (2015)

0040

Schedule I (Form990) (2015) HEALING AMERICAN HEROES, INC. 27-1607659 Page2

H~~~ll~m1ij Grants and Other Assistance to Domestic Individuals. Complete if the organization answered 'Yes' on Form 990, Part IV, line 22. Part Ill . can be duplicated if additional space is needed.

(e) Type of grant or assistance (b) Number of (c) Amount of (d) Amount of (e) Method of valuation (book. {f) Description of non-cash assistance rec1p1ents cash grant non-cash assistance FMV, appraisal, other)

FINANCIAL AID TO ACTIVE DUTY 1 SOLDIE 95 207 535.

REHAB EVENT ATTENDANCE & -

2 SUPPORT 2 700 112 577. ..

3

4

5 ,,

6

7

···· - · !!!Supplemental Information. Provide the information required in Part I, line 2, Part Ill, column (b), and any other additional information.

BAA Schedule I (Form 990) (2015)

TEEA3902L 1 1/04/1 5

0041

SCHEDULE 0 (Fonn 990 or 990-EZ)

Supplemental Information to Form 990 or 990-EZ 0MB No. 1545-0047

Department of 1he Treasury lnlernaf Revenue Service

Complete to provide information for responses to specific questions on Form 990 or 990-EZ or to provide any additional information .

.. Attach to Form 990 or 990-EZ. ,.. Information about Schedule O (Form 990 or 990-EZ) and its instructions is

at www.irs.gov/form990.

2015

Name ot 1he orgamzation HEALING AMERICAN HEROES, INC. Employor idcniillcaiion number

DBA HELP OUR WOUNDED 27-1607659

FORM 990, PART VI, LlNE 11 B - FORM 990 REVIEW PROCESS

THE ORGANIZATION PROVIDED FORM 990 FOR BOARD INSPECTION

FORM 990, PART VI, LINE 19 - OTHER ORGANIZATION DOCUMENTS PUBLJCLY AVAILABLE

THE ORGANIZATION MAKES ITS FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND OTHER

POLICY DOCUMENTS AVAILABLE TO THE PUBLIC UPON REQUEST.

FORM 990, PART !X, LINE 11G OTHER FEES FOR SERVICES

CONSULTANTS TOTAL$

(A)

TOTAL 346,402. 346,402.

(B) PROGRAM

SERVICES 301,040.

$ 301,040.

(C) (D) MANAGEMENT FUND-& GENERAL RAISING

45,362. $ 45,362. $ 0.

BAA For Paperwork Reduction Act Notice, see the lnslrudions far Form 990 or 990·EZ. rEEA4901L 10112115 Schedule O (Form 990 or 990-EZ) (2015)

0042

HEALING AMERICAN HEROES, INC. dba HELP OUR WOUNDED

AUDITED FINANCIAL STATE1\1ENTS FOR THE YEAR ENDED DECEMBER 31, 2015

DUNHAM, AUKAM:P & RHODES, PLC Certified Public Accountants

Chantilly, Virginin

0043

• • • •• ~ ~- •• I .: : .. . :: .. :.:.::- ;:~~ :·:.

HEALING AMERICAN HEROES, INC, dba HELP OUR WOUNDED

Independent Auditor's Report

Statement of Financial Position

Statement of Activities

Statement of Functional Expenses

Statement of Cash Flows

Notes to Financial Statements

Table of Contents

• • I

1-2

3

4

5

6

7-9

0044

Dunham, Aukamp & Rhodes, PLC Certified Pubfic Accountants

To the Board of Directors Healing American Heroes, Inc.

4437 Brookfield Corporate Dr., Suite 205-D Chantilly, VA 20151

INDEPENDENT AUDITOR'S REPORT

We have audited the accompanying financial statements of Healing American Heroes, Inc. ( a nonprofit organization), which comprises the statement of financial position as of December 3 l, 2015, and the related statements of activities, functional expenses, and cash flows for the year then ended) and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error,

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement,

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend· on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error, ln making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentntion of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Metro: (703) 631-8940 FAX: (703) 631-8939 Toll Free l-877-631-8940

0045

·•.·.,.-., .. ,.;:-·

Opinion

Tn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Healing American Heroes, Inc. as of December JI, 2015, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepte~ in the United States of America.

c{J~ 1 /4/J 1 '14/4, I t/C Certified Public Accountants Chantilly, VA

July18,2016

···1

2

0046

HEALING AME,RICAN HEROES, INC. dba HELP OUR WOUNDED

STATEMENT OF FINANCIAL POSlTION December 311 :2015

Current Assets Cash and cash equivalents Accounts receivable Prepaid expenses

Total Current Assets

Property and Equipment Equipment Accumulated depreciation

.ASSETS

Net Property and Equipment

Total Assets

LIABILITIES AND NET ASSETS

Current Liabilities Accounts payable and accrued liabilities

Total Liabilities

Net Assetes Unrestricted

Total Net Assets

Total Liabilities and Net Assets

See accompanying notes to financial statements,

$439,985 88,213 2,221

530,419

7,295 (2,814) 4,481

$534,900

$ 316,697 316,697

218,203 218,203

$ 534,900

3

0047


STATEMENT OF ACTIVITIES For the Year Ended December 31, 2015

Unrestricted Revenues Contributions List use royalties

Total Unrestricted Revenues

Expenses Program Services

Public education Wounded veterans ·assistance

Total Program Services Supporting Services

Fundraising General and administrative

Total Supporting Services

Total Expenses

Change in Net Assets

Net Deficit· Beginning of Year

Net Assets. End of Year

$ 3,362,784 68,522

3,431,306

2,031,783 346,937

2,378,720

459,135 407,125 866,260

. 3,244,980

186,326

J 1,877

$ 218,203

See acc;:ompanying notes to financial statements. 4

0048

Direct mail production and services Postage Mail fees

Direct aid Caging Rehabilitative events and supplies List rental Operating costs Data processing Payroll and related expenses Professional services Office expenses

Bank fees Stale registrations Design and art work

Total

5

Public


STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended December 31, 2015

Program Services

Wounded Total Veterans Program

Education Assistance Services Fundraisin[_

$ 845,876 $ - $ 845,876 $ 185,398 688,265 - 688,265 150,853 301,040 - 301,040 65,982

207,535 207,535 -82,283 - 82,283 18,034

112,577 112,577 -66,103 - 66,103 14,488

2,979 7,448 10,427 2,979 32,907 32,907 7,212

7,751 19,377 27,128 7,751

-2,133 2,133 -

- -- - 5,902

2,446 - 2,446 536 $ 2,031,783 $346,937 $2,378.720 $ 459,135

See accompanying notes to financial statements.

Supporting Services

Total General and Supporting Total

Administrative Services Expenses

$ 127,46] $ 312,859 $ 1,158,735 103,71 l 254,564 942,829 45,362 1 ll,344 412,384

- 207,535 12,399 30,433 112,716

- - 112,577 9,961 24,449 90,552

43,71 I 46,690 57,117 4,959 12,171 45,078 3,875 11,626 38,754

19,900 19,900 19,900 16,876 16,876 19,009 18,542 18,54i 18,542

- 5,902 5,902 368 904 3,350

$ 4Q7,125 $ 866,260 $ 3,244,980

0049


STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015

Cash Flows from Operating Activities

Change in Net Assets Adjustments to Reconcile Change in Net Assets

to Net Cash Provided by Operating Activities Depreciation Changes in Operating Assets and Liabilities

Accounts receivable Prepaid expenses Accounts payable and accrued liabilities

Net Cash Provided by Operating Activities

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents - Beginning of Year

Cash and Cash Equivalents - End of Year

See accompanying notes to financial statements.

$ 186,326

1,28)

(27,895) (597)

(6,758) 152,359

152,359

287,626

$ 439,985

6

0050


NOTES TO FINANCIAL STATEMENTS

NOTE 1 - Organization and Summary of Significant Accounting Policies

Healing American Heroes, Inc,, dba Help Our Wounded (HOW) is a non-stock, not-for-profit Corporation, which was organized under the laws of the state of Texas. HOW's mission is to serve the physical, spiritual and emotional needs of our wounded warriors and those who care for them. Funds are received as contributions from the general public,

The following is a summary of significant accounting policies followed in the preparation of these financial statements:

(a) Basis of Accounting - HOW prepares lts financial statements in accordance with generally accepted accounting principles, which involves the application of accrual accounting; consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred.

(b) Financial Statement Presentation - HOW is required to report information regarding its financial position and activities according to three classes of net assets; unrestricted, temporarily ·restricted and permanently restricted. HOW had no permanently or temporarily restricted net assets as of December 3 I, 2015,

(c) Support and Expenses - Contributions received and unconditional promises to give are measured at their fair values and are reported as an increase in net assets. HOW reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets, or if they are designated as support for future periods. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reported in the statement of activity as net assets released from restrictions. Donor restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support.

(d) Cash and Cash Equivalents - HOW considers all money market funds and certificate of deposits, purchased with an original maturity of three months or less, to be cash equivalents,

(e) Accounts Receivllble - Accounts receivable are stated at unpaid balances. No allowance for uncollcctible accounts has been provided. HOW's management has evaluated the accounts and believes all amounts are fully collectible.

(f) Furniture and Equipment - Furniture and equipment in excess of $1,000 are stated at cost and are depreciated using the straight-line method over the estimated useful lives, generally five to seven years. Expenditures for maintenance and repairs are recorded as an expense when incurred, Bettennents that increase the value or materially extend the life of the related assets are capitalized

(g) Uncertain Tax Positions - As of December 3 I, 2015, HOW has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. The tax yeal"S subject to examination by the taxing authorities are the years ended December 3 1, 2012 through 20 I 4.

7

0051


NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 1 - Organi:r.ation and Summary of Significant Accounting Policies {Continued)

(h) Income Taxes - HOW is exempt from federal income taxes under Section 50 I (c)(3) of the [ntemal Revenue Code, on all income other than unrelated business income. Accordingly, there is no provision for income taxes. HOW has been classified as other than a private foundation.

(i) Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates,

U) Concentration of Credit Risk - Financial instruments that potentially expose HOW to concentration of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are maintained at high-quality financial institutions, and credit exposure is limited at any one institution. HOW maintains its cash in various bank deposits accounts which, at times, may exceed federally insured limits. HOW hus not experienced any losses in such accounts.

(k) functional Allocation of Expenses - The costs of providing the various programs and other activities have been summarized on a functional basis in the Statement of Functional Expenses. Indirect costs have been allocated among the programs and supporting services benefited based on various methods.

(1) Advertising Costs - Advertising costs are expensed as incurred.

NOTE 2 - Allocation of Joint Costs

HOW conducted direct mail campaigns that included appeals for contributions, as well as program an.o membership development components. These activities included joint costs which have been allocated as follows:

Public Education Fundraising Direct Mail Program Administration

Total

$2,018,920 442,502 304,221

$I~

NOTE 3 - Subsequent Receipt of Direct Mail Contributions

Approximately 93.7% of HOW's revenue is the result of the direct mail campaign. Generally accepted accounting principles require that the costs of mailings, including unpaid amounts, are to be accrued in the period in which the mailings take place. The support received from each mailing is accumulated and identified with each ma[ling. As a result of this process, there are contributions received after year end that are attributable to a mailing distributed before the end of the year. Support for mailings that were sent in 2015 but were not received unti I 2016 amounted to approximately $291,533.

•• : ..• 1 ,· :.·~· •• ::·: .

8

0052


NOTES TO FINANCIAL ST A TEMENTS (Concluded)

NOTE 4 - Evaluation of Subsequent Events

HOW has evaluated subsequent events through July I 8, 20 I 6, the da1e which the financial statements were available to be issued.

9

0053

Exhibit B

0054

Charles H. Nave 3161\ifountain Avenue SvY Roanoke, VA 24016

STAT!: OF ivllCHIUAN DEPARTMENT OF ATTORNEY GENERAL

Bl!LL SCHlJETTE ATTORNEY GENERAL

March 21, 2017

Re: Healing American Heroes, Inc. ("1-L~H") cs 44560

Dear Mr. Nave:

P.O. Box 30214 LANSING. MICHIGAN 48909

Sent vi.a email and US mail

We received the documents to register the above organization to solicit in Michigan under the Charitable Organizations and Solicitations Act, MCL 400.271 et seq. However, before the registration can be processed, additional information will be necessary. Please respond to the following:

1. According to its Form 990 and financial statements, BAH allocates joint costs to program services. So that H.AH may demonstrate that its financial statements and Form 990 do not materially misrepresent its charitable program costs, please provide the information and supporting documentation requested below:

a. Please explain in detail what program service was conducted during the 2015 solicitations.

b. What was the purpose of the joint activity?

c. What was the "call to action" requested of the audience in the solicitations?

cl. What evidence did the auditor rely on that showed that the purpose of the activity was to furtheT the mission of the organization?

e. Was the pTOgram, including the call to action, conducted on a similar scale using the same medium without the fund-raising appeal? If so, please provide details and samples of mateTials used in that program.

f Describe how the audience was selected for campaigns in which costs were allocated to program services. Provide names and descriptions of

0055

Charles H. Nave Page 2 J\;Iarch 21, 2017

all donor lists acquired. Identify which lists include persons that previously made contributions to IL~H. Provide the name and address of the owner of each contact, or donor, list.

g. Provide samples of all solicitation materials used by HAH during 2015 including all versions of telemarketing scripts, internet solicitations (web-based and email), invoices or any ocher fulfillment requests, letters, envelopes, brochures, pamphlets and all other pTinted material.

h. Provide details to show precisely how the amount allocated to progTam services ,vas determined. If the physical units method was used, the sample of solicitation materials should show the pmtions that were deemed program seTvices, management & general, and fundraising.

The following items relate to lLI\.H's 2015 Form 990:

2. Provide a schedule of financial aid to active duty soldiers as shown on Schedule I in the amount of $207,535. The schedule should include the name and address of tl1e recipient, purpose of the grant, and dollar amount.

3. Provide an explanation and a schedule detailing the rehab event attendance & support in the amount of $112,577 on Schedule I. The schedule should include dates and locations of events in.addition to itemizing all payments.

4. Provide a schedule of Other fees reported on PaTt IX, line lg in the amount of $346,402. The schedule should include the name and address of each payee, the dollar amount paid, an explanation of the service provided, and the basis for any allocation to program services.

5. Part IX, line 24c reports caging expense in the amount of $112,716 of which $82,283 is allocated to program services. It would seem that any educational or program communication with the donor has already been made at the time caging expense occurs. Explain and justify why any portion of caging expense is allocable to program services.

6. PaTt IX, line 24e reports All other expenses in the amount of $129,989 of which $45,780 was allocated to program services. PTovide a schedule itemi7,1ng the expenses included here that lists the expense, dollar amount, amount allocated to program services, and explains the basis for the program services allocation.

0056

Charles H. Nave Page 3 March '.21, 2017

Please provide the rf'quested infonnation hy April '21, 2017.

JJK

Very truly your::,,

/

Josepr J. Kylman Auditor Charitable Trust Section (517) 373-1152

0057

CHARLES H. NAVE, P.C. 316 Mountain Avenue, SW, Roanoke, VA 24016

Tel: 540 345 8848 Fax: 540 301 4296

Mr. Joseph J. Kylman, Auditor State of Michigan Department of Attorney General Charitable Trusts Section

VIA ELECTRONIC MAIL: [email protected]

Re: Healing American Heroes, Inc. ("HAH") / CS 44560

Dear Mr. Kylman,

Admitted in Virginia, Maryland and the District a/Columbia

I am writing in response to your letter dated March 21, 2017 regarding the above referenced client. In response to your questions, please be advised of the following:

"1. According to its Form 990 and financial statements, HAH allocates joint costs to program services. So that HAH may demonstrate that its financial statements and Form 990 do not materially misrepresent its charitable program costs, please provide the information and supporting documentation requested below:

a. Please explain in detail what program service was conducted during the 2015 solicitations."

Engaging in public education campaigns to raise public awareness of the difficulties and challenges faced by severely injured wounded soldiers and veterans, their families, and caregivers.

"b. What was the purpose of the joint activity?"

To accomplish HAH's program functions mentioned above (la) with the call to action mentioned below (le).

"c. What was the "call to action" requested of the audience in the solicitations?"

Each of HAH's mailings is designed to ask the audience to send referrals to HAH for assistance.

"d. What evidence did the auditor rely on that showed that the purpose of, the activity was to further the mission of the organization?"

For joint costs, the auditor reviewed the sample mail pieces provided, along with the allocation procedure used on each mailing. For the program fulfillment allocation by Texas Operating, the "assistance spreadsheets" were made available for audit review and testing.

0058

No.

HEALING AMERICAN HEROES, INC. LETTER TO MICHIGAN A.G.

PAGE2

"e. Was the program, including the call to action, conducted on a similar scale using the same medium without the fund-raising appeal? If so, please provide details and samples of materials used in that program."

"f. Describe how the audience was selected for campaigns in which costs were allocated to program services. Provide names and descriptions of all donor lists acquired. Identify which lists include persons that previously made contributions to HAH. Provide the name and address of the owner of each contact, or donor, list."

The audience is chosen because they have demonstrated an affinity for providing, or a need for, the action requested. More specifically, the organization seeks out those who have demonstrated an ability to take action to meet the program goals of raising awareness of the difficulties faced by wounded veterans and military retirees, their families and caregivers, medics and chaplains. The organization also seeks out those who have demonstrated an interest in military and patriotic issues.

See accompanying spreadsheet "Attlf HAH ListsMichigan.xlsx" for requested information on acquisition lists. Persons who have previously responded to HAH (donation or non-donation communication) are omitted from these acquisition lists.

"g. Provide samples of all solicitation materials used by HAH during 2015 including all versions oftelemarketing scripts, internet solicitations (web-based and email), invoices or any othr fulfillment requests, letters, envelopes, brochures, pamphlets and all other printed material."

Digital samples of solicitations accompany this letter and show the portions that were deemed program services (yellow), management and general (blue), and fund raising (green) and/or as marked.

"h. Provide details to show precisely how the amount allocated to program services was determined. If the physical units method was used, the sample of solicitation materials should show the portions that were deemed program services, management & general, and fundraising."

The physical unit method was used. Samples accompanying this letter show the proportions and detail requested. Please refer to response to question 1 g for color coding.

0059


PAGE3

"The following items relate to HAH's 2015 Form 990: 2. Provide a schedule of financial aid to active duty soldiers as shown on Schedule I in the amount of $207,535. The schedule should include the name and address of the recipient, purpose of the grant, and dollar amount."

See attached spreadsheet "Att2 HAH Program Fulfillment 2015 Soldiers, Veterans & Caregivers.xlsx."

"3. Provide an explanation and a schedule detailing the rehab event attendance & support in the amount of $112,577 on Schedule I. The schedule should include dates and locations of events in addition to itemizing all payments."

See attached spreadsheet "Att3 HAH Program Fulfillment 2015 Rehabilitative Events & Services.xlsx."

"4. Provide a schedule of Other fees reported on Part IX, line 11 g in the amount of $346,402. The schedule should include the name and address of each payee, the dollar amount paid, an explanation of the service provided, and the basis for any allocation to program services."

$301,040 ... was paid to Jeremy Squire & Associates for mailfees for the direct mail program; allocated to Public Education $45,362 ... was paid to Jeremy Squire & Associates for mailfees for the direct mail program; allocated to General & Administration $346,402 ... total

Jeremy Squire & Associates 5501 Merchants View Square #750 Haymarket, VA 20169

Allocation is based on the direct mail package allocation referenced in #1 above.

"5. Part IX, line 24c reports caging expense in the amount of $112,716 of which $82,283 is allocated to program services. It would seem that any educational or program communication with the donor has already been made at the time caging expense occurs. Explain and justify why any portion of caging expense is allocable to program services."

The caging category includes opening all envelopes & correspondence from the public in response to mailings and then handing the contents accordingly ( e.g. depositing checks, recording responses on HAH' s database, responding to requests for information on or referrals for HAH's programs, etc). Many of these envelopes do contain program-related correspondence from the public.

0060

HEALING AMERICAN HEROES, INC.

LETTER TO MICHIGAN A.G. PAGE4

6. Part IX, line 24e reports All other expenses in the amount of $129,989 of which $45,780 was allocated to program services. Provide a schedule itemizing the expenses included here that lists the expense, dollar amount, amount allocated to program services, and explains the basis for the program services allocation.

These come from both the mail program & Texas Operations (the program allocation portion) Data Processing ... $32,907 Design & Artwork ... $2,446 Operating ... $10,427 (made up of: $2,132; shipping of items to rehabilitative events (100% program) & $8,295; software, travel, operating shipping, printing, answering service, website, etc (14.5% allocation to program) Total: $45,780

I believe that this answers all of the questions raised in your letter. If not or if you have further questions, please do not hesitate to contact me.

Sincerely,

Charles H. Nave, Charles Nave, Esq.

Digitally signed by Charles H. Nave, Esq.

E DN: cn=Charles H. Nave, Esq., o=Charles H. Nave, P.C., sq, ou=Charles H. Nave, P.C., email=charlie@nave-law. com,c=US Date: 2017.04.21 15:30:24 -04'00'

0061

Exhibit C

0062

Gharles H. Nave 316 Mountain A venue SW Roanoke, VA 24016

STA TE OF tvl!CHIC,AN DEPARTMENT OF ATTORNEY GENERAL

BILL scmm'TTE ATTORNEY GENERAL

}\;fay 18, 2017

Re: Hea1ing American Heroes, Tnc. ("HAH") cs 44560

Dear Mr. Nave:

P.O. Box 30214 LANSING, MICHIGAN 48909

Notice of Intention to Deny Registration and Opportunity to Request Informal Conference

vVe received the Renewal Solicitation Registration Form and supporting information submitted on behalf of the above organization under lhe ChariLable Organizations and Solicitations Act, MCL 400.271 et seq. ("COSA"). We intend to deny registration.

GOSA provides that the Attorney General shall register a charitable organization unless the organization has materially misrepresented or omitted information required or the organization has acted or is acting in violation of the act or rules. MCL 400.275.

We examined HAH's registration to determine if it conforms to the requirements of the COSA and the rules. For the reasons discussed below, we find that R~H has materially misrepresented or omitted required information or has acted in violation of the act or rules. HAH will be provided an opportunity to provide additional documentation and to show its compliance with COSA.

Facts

H.A.H submitted its form to. renew its Michigan chaxitable solicitation registration under COSA in October 2016. Included with HAH's registration form was }IA.H's IRS Form 990 and its financial statements which reported on the year ended December 31, 2015. According to the documents, RAH received contributions during the period in the amount of $3,362,784. R.;.H had total expense of $3,244,980 and reported that it spent $2,378,720 on its charitable program. It also reported that $2,018,920 of its $2,378,720 in charitable programs-or 84.9%-were

0063

Charles ff Nave Page '2 May 18, 2017

comprised of joint costs1 allocated to program services. After review, the Chaiitable Trust Section sent its lettex dated March 21, 2017, inquiring about the joint costs allocation as well as other matters related to ILAH's pTograrn activity and items reported on its Form 990. HAH responded on April 21, 2017. Having reviewed the Tesponse, the Charitable Tn1St Section intends to deny.

Reasons for Denial

I. HAH submitted financial statements which are not in accordance with generally accepted accounting principles (G~~P).

COSA states in section 3(2), in part:

(j) If the charitable organization received contributions in its immediately preceding tax year, as reported on the charitable organization's internal rnvenue service form 990, 990-EZ, 990-PF, or other 990-series return, in the amount of $525,000.00 or more, financial statements prepared according to generally accepted accounting principles and audited by an independent certified public accountant. [Emphasis added]

CLMP in the area of joint costs is provided by the Financial Accounting Standard Board's Accounting Standards Codification ("ASC"). The ASC requires that, for joint costs to be allocable, the criteria of purpose, audience, and content must be met. 2 In addition, the cost allocation method must be rational and systematic and result in an allocation that is reasonable."

The ASC ststes that, to accomplish program functions, the activity shall call for specific action by the audience that will help accomplish the mgani:z,ation's mission. Actions that help accomplish the mission are activities that will do either of the following:

a. Benefit the recipient (such as improving the recipient's physical, mental, emotional, or spiritual health and well-being)

b. Benefit society (by addressing societal problems). 4

1 Joint cos1s are costs not identifiable with a particular .tunction that occur in a campaign which includes both solicitm:ion and charitable program llctivity. 2 ASC 958-720-45-29 . 3 ACS 958-720-45-54 "ASC 958-720-45-35

0064

Charles H. :>Jave Page 3 May 18, 2017

In rts letter of March 21, 2017, the Charitable Tn1st Section inquired what HAH's call to action was in its solicitations. RA..H, through its attorney, responded, "Each of HAH's mailings is designed to ask the audience to send referrals to HAH for assistance."

The ASC also consistently states that information identifying and describing the organization, its causes, or how contributions wil1 h8 used is considered in support of fundraising.'j According to the ASC, in accounting for joint costs, a presumption exists that expenses shall be reported as fundraising. This presumption cannot be overcome by educating the audience about causes. 6 The ASC provides the following examples of activities that fail to call for a specific action by the audience that will help accomplish an organization's mission:

a. Educating the audience about causes or motivating the audience to otherwise engage in specific activities that will educate them about causes is not a call for specific action by the audience that wilJ help accomplish the NFP's mission. Such activities are considered in support of fundraising.

b. Asking the audience to make contributions is not a call for specific action that will help accomplish the NFP's mission.7

Joint costs on HAH's form 990 and in its financial statements total $2,765,6438 of which $2,018,920. or 73.0% have been allocated to program services. According to RI\H's response, they used the physical units method to deteTmine the allocation. 9

In response to the ChaTitable Trust Section query, HAH provided its soliciting matel'ials marked to show portions deemed allocable to program services. The following excerpts from the materials are representative examples of the messages provided to persons by HA.H that were allocated to program services:

5 ASC 958-720-45-51 6 ASC 958-720-45-37 7 ASC 958-720-55-5 8 HAH counted $112,716 in caging costs as joint costs. Caging services involve opening envelopes from donors in response to mailings. The Charitable Tmst Section finds that such services have no program element and should not be allocable to program services as joint costs. 9 The physical unii:s method allocates joint costs in the same proportion as units of the solicitation materials are deemed to be related to program, management & general, or fundraising.

0065

Charles H. Nave Page 4

18, 2017

''As you rcud this, I know of over a dozen families who arc in need of urgent assistance. None of the soldiers in their c;-ne will ew1r 1ead a "norm8-l" life. For example, one young man I know has lost his vision, hearing, and is severely brain damaged and parnlyzed from the neck down."10

"My goal for Help Our Wounded 11 is to be available at every step of the way in assisting our wounded waI"TioTS -stal'ting on the battlefield with a free phone call home and ending with rehabilitation assistance and long term care support and help for those in VA hospitals."12

''Help Our Wounded helps pay for the tTavel involved when families cross the country to be with their seveTely wounded warrior when he undergoes sul'gery. We help pay for specialized medical equipment not covered by the VA. We help families navigate the maze of VA and Department of Defense rules and regulations covering disability payments and medical treatment." 13

According to GAAP, such infoTmation describing the cause and how HAH uses solicited funds is considered in support of fundraising. However, such paragraphs wel'e deemed by HAH to be program related and allocated to program services. The submitted materials included dozens of paragraphs such as those shown above. In contrast, HAH's call to action - its request fOT referrals - received only 2 to 3 sentences in each solicitation package.

The Charitable Trust Section performed its own evaluation of HAH's solicitation materials to determine the extent that such inappropTiate causerelated language has been allocated to program services. After its review, the Charitable Trust Section determined that only 5.6% of the joint costs, should be allocable to pTogwm seTvices.

HAH violated COSA by submitting financial statements which are not in accordance with GA .. AP because:

10 HP 151 l Letter-PR.pdf 11 HAH uses the name Help Our Wounded in most of its solicitations. 1" HS 1504 _Ltr I ALLOC.pdf

13 HS1514 Letter ALLOC.pdf

0066

Charles H. Nave Page :5 May 18. 2017

n.

1. Cause related mformation was misallocated to program services instead of fundraising;

2. The misallocation resulted in an unreasonable allocation to progxam services on the Form 990 and financial statements.

submitted anci.a1 statements and its Form 990 which materially misrepresent its charitable activities.

COSA states in section 18:

(1) A person subject to this act, or an employee or agent of a person subject to this act, 1:,hall noL do any of t;he following:

(y) For 8 ch:uitahle organi7,11tion, submit fin11nci11l statements, including IRS form 990, 990-EZ, 990-PF, or other 990- series internal revenue service reLurn, or any oLher financial report required under this act, that contain any misrepresentation with respect to the organization's activities, operations, or use of charitable assets. MCL 400.288.

The facts and allegations in I above are hereby referenced.

RAH submitted its 2015 Form 990 and audited financial statements to the Charitable Trust Section in October 2016. The Form 990 and financial statements each claim that HA.H's total charitable program services spending during the year was $2,378,720. Included in that amount were $2,018,920 in joint costs that were allocated to progwm services. As discussed above, the allocation in the Form 990 and financial statements was based upon an improper allocation of joint costs due to a failure to follow GA.A.P. As shown below, this resulted in an overstatement of program services expense in the Form 990 and financial statements of $1,864,044.

. '. -,; l l Per CTS review I' Difference . ; , l: Per 990/audlt l - --Total joint costs I 2,765,643 2,765,643

Multiply calculated joint cost -i

I j 73.0% 5.6% i ~!:12._perc el_!ta ~ J

Program allocation from joint costs I 2,01s,920 I 154,8761 . -------j- I

Add non-joint costs program j 359,800 ! 359,800 I Tota I progra 111 services ! $ 2,378, no I $ 5141676 $ 1,864,044

HAH violated COSA by submitting its Form 990 and financial statements which each materially misrepresent its progxam services activities.

0067

Charles H. Nave Page 6 Ivfay 2017

violated COSA by subrnitting docun1.ents to the Attorney General contain a materially false statement.

COSA states in section 18:

(1) A person subject to this act, or an employee or agent of a person subject to this act, shall not do any of the following:

* * * (u) Submit any of the following to the attorney general:

'" * * (ii) A document containing any materially false statement.

The facts and allegations in 1 and 2 above are hereby referenced.

HA.H's Form 990 and financial statements, which it submitted to the Attorney General, each claim that I-IA_H spent $2,378,720 in program services spending in 2015. However, as shown above, this amount is materially overstated clue to HAH's improper allocation of joint costs to program services.

H.A.H violated GOSA by submitting its Form 990 and financial statements which falsely state that its program services expense in 2015 was $2,378,720.

Request for Informal Conference

H._c\H may request an informal conference to be conducted by telephone. The request for an informal conference must be in writing and may be sent to me via email at [email protected]. We must receive the request by June 15, 2017. I will then contact you to schedule the informal conference.

During the conference, HAH may discuss the allegations with the Charitable Trust Section, challenge or rebut the allegations, and/or show that it is in compliance with COSA. If HAH has documents or other evidence to support its positions, we must receive the additional information at least three days in advance of the informal conference.

If H_AH does nm; request an informal conference or respond to the allegations, vve will deny its registration.

0068

ChaTles H. Nrive Page 7 May 18, 201',

Investigative

Concurrent with this Notice of Intention to Deny, our office is also issuing HAH a11 investigative order vvhich rnquires it to produce additional documentation.

JJK

Very truly yours,

Joseph Auditor Charitable Trust Section (517) 373-1152

0069

Exhibit D

0070

. -.------.-- l

STATE OF MICHIGAN DEPARTMENT OF ATTORNEY GENERAL

CORPORATE OVERSIGHT DIVISION

In the Matter of the: AG No. 2017-0180815-A

Healing American Heroes, Inc.

___________________ /

ORDER TO PRODUCE BOOKS, RECORDS, DOCUMENTS, AND OTHER INFORMATION

To: Healing American Heroes, Inc.

Charles H. Nave 316 Mountain Avenue SW Roanoke, VA 24016 [email protected]

Date: May 18, 2017

BILL SCHUETTE Attorney General

William R. Bloomfield (P68515) Assistant Attorney General Corporate Oversight Division P.O. Box 30755 Lansing, MI 48909

0071

Definitions

A. The terms "Healing American Heroes" or "RAH" shall refer to Healing American Heroes, Inc. and any of its directors, officers, agents, contractors, or professional fundraisers employed by RAH.

B. The terms "identity" or "identify" requires the following:

a. When referring to a person, you are required to state the person's full name, residential and business address, residential and business telephone numbers, and personal and business email accounts;

b. When referring to a communication, you are required, if any part of the communication was written, to produce the document(s) which refer to or evidence the communication, and, to the extent that the communication was non-written, to identify the persons participating in the communication and to state the date, manner, place and substance of the communication;

c. If your answer to a request to identify is that there are no responsive items, your answer should state so.

C. The phrase "relating to" as used herein means any document and/or communication which is in reference to, relates to, refers to, regards, reflects, concerns, contains, embodies or in any manner pertains to the subject matter of the investigation.

ORDER TO PRODUCE

Attorney General Bill Schuette ORDERS you to produce the following books, records, documents, and information and to respond to any questions:

Fundraising and solicitations

After reviewing HAH's April 21, 2017 response, we have additional questions. The following information and documentation must be provided by June 15.

1. Item ld of auditor Joe Kylman's March 21, 2017 letter requested information related to the auditor's conclusion regarding the purpose of the joint cost activity. Your response stated, "For the program fulfillment allocation by Texas Operating, the 'assistance spreadsheets' were made available for audit review and testing." Please explain.

2

0072

2. Item 3 of auditor Joe Kylman's March 21, 2017 letter requested both an explanation and a schedule "detailing the rehab event attendance and support program in the amount of $112,577 from Schedule I of the 2015 Form 990. The response provided a schedule, but no explanation.

a. Please explain the "rehab event attendance and support program."

b. Explain what expenses qualify for this program.

c. Are wounded soldiers or veterans attending these events?

d. Several of the events listed in the schedule use the word "sponsor" in the description. Explain the purpose of these sponsorship events.

3. In the schedule HAR produced showing financial aid to active duty soldiers of $207,535, explain the $3,734 in total expenses paid to AT&T Data and AT&T Wireless described in the schedule as "Bruce Burgess - 1st participant in DVBIC smart phone apt monitoring program / Indian Head, MD."

4. Form 990, Part III, Item 4a describes two HAH programs: a public education and awareness program and also a program to provide resource and support services information to family members and caregivers as they care for and transition military service members back into the community. Please explain how the second program operates. The response should include, but not be limited to, the following:

a. Where does HAH operate this program? Does HAH provide face-to-face services?

b. Provide a schedule of families and caregivers that were assisted in each of the years 2015 and 2016. The schedule should provide the name and address of the family, the nature of the resource and support services information provided, and cost of the services provided to the family.

c. What were the costs of this program in each of the years 2015 and 2016?

d. Why is this program not listed separately as required by the Form 990 instructions? It may be necessary to amend the Form 990.

3

0073

5. Form 990, Part III, line 4b describes HAH's programs to provide financial assistance. However, the space to report the dollar amount of grants given is blank. Please provide this information. It may be necessary to amend the Form 990.

6. Ten of the fifteen solicitation packages1 that you provided requested contributions to pay for phone cards for soldiers. An eleventh package asked for donations to buy gift cards. However, HAH's Form 990 makes no mention of phone card assistance or gift card programs. Identify where the costs of these programs are found on the Form 990. As the solicitations suggest that the phone card program was HAH's primary program, it may be necessary to amend the Form 990.

Phone Card Solicitations

7. Explain how the phone card program is operated and how HAH distributes the cards.

8. How many phone cards were distributed in each of the years 2015 and 2016?

9. What was the source of the phone cards? Were the cards donated or purchased by HAH?

IO.What was the cost of the phone cards in 2015? In 2016?

I I. Identify shipping costs, distribution costs, or any other costs for the phone card program for the years 2015 and 2016.

12. What was the total cost of the phone card program in 2015? In 2016?

13. The solicitation packages emphasize that the donor will "sponsor" phone cards to soldiers, using phrases that personalize the request, such as:

"Here is your chance to sponsor one, two, or even three Emergency Phone Cards for as little as $10 and show our young warriors they are in your thoughts."

"Will you make a donation of $20, $10,· $15 - or even more - and help us meet our goal of making sure every deployed soldier has an Emergency Phone Card in his or her pocket?

1 The ten packages are: HS1501, HS1502, HS1503, HS1504, HS1506, HS1507, HS1508, HS1509, HS1513, and HS1514.

4

0074

"Your cards will be shipped to bases ..... "

"Your gift will help us supply Emergency Phone Cards like the ones enclosed with this letter."

"Will you return the check I sent with a contribution to help our Emergency Phone Card program?"

"Your donation of $20, $10, or $15 will help us put a phone card directly into the hands of a brave wounded soldier who needs your assistance!"

"If you do one thing for our brave Wounded Heroes, will you help one call home?"

"My contacts have told me that there are not enough phone cards for our Wounded Heroes. That's why, if you can only do one thing for our soldiers today, won't you please make a tax-deductible gift of $10, $15, $20 or more so we can provide the prepaid international phone cards they need to call home, and help them in every other way we can?"

"Please will you sponsor, one, two, or even three Emergency Phone Cards like the ones I've enclosed in this letter? The cards you sponsor will each allow a soldier to call home FREE in an emergency."

"Sponsored cards are not for "everyday use" - the card you sponsor is for true emergencies or those once a year

. " occas10ns., , .

"Somewhere there's a soldier who deserves a free call home - here's YOUR chance to help him ... "

"With help from concerned friends like you, I'm able to provide free phone cards like the one I've enclosed to wounded soldiers in Afghanistan and in hospitals like Walter Reed, where the most severely wounded soldiers arrive from overseas."

Does RAH account for funds received from these packages as funds restricted to the phone card program? If not, please explain.

14. For .each of the ten phone card solicitation packages referred to above (see footnote 1), provide the following information for both national

5

0075

and Michigan solicitations: the dates the packages were mailed, the number of packages mailed, the number of donations received, and the dollar amount of donations received.

Gift Card Solicitation

15. Solicitation packages #1510 and #1512 asked for money to provide gift cards to severely wounded soldiers and their families. Explain how the gift card program is operated and how HAR distributes the cards.

16.How many gift cards were distributed in each of the years 2015 and 2016?

17. What was the source of the gift cards? Were the cards donated or purchased by HAR?

18. What was the cost of the gift cards in 2015? In 2016?

19. Identify shipping costs, distribution costs, or any other costs for the gift card program for the years 2015 and 2016.

20. What was the total cost of the gift card program in 2015? In 2016?

21. For solicitation packages #1510 and #1512, provide the following information for both national and Michigan solicitations: the dates the packages were mailed, the number of'packages mailed, the number of donations received, and the dollar amount of donations received.

Other Requests

22. Several of the packages submitted included the following phrase:

"I've been able to help over 300 families who are caring for a severely wounded warrior, and have obtained grants and assistance for them totaling over $500,000 - at no cost to them and with every cent that was donated going directly to them." [emphasis added]

All of the reply documents in the packages that were provided to us include the following statement:

"Help our Wounded retains 100% of the funds contributed."

Using figures from the 2015 Form 990, we calculate that the solicitations cost approximately $2.76 million, which equals 79% of the funds raised.

6

0076

Admit that the above phrases from the solicitations are false or misleading. Alternatively, explain why these phrases are not false or misleading.

23. Our previous letter requested samples of all soliciting materials used in 2015 for purposes of inquiring into joint cost allocations. Please supplement by providing all soliciting materials used in Michigan during 2015, 2016, and 2017. The materials should be marked to show the dates they were used in Michigan.

24. Identify total amounts raised in Michigan for 2015 and 2016.

25. Identify total amount raised nationally in 2016.

26. Identify total number of solicitations in Michigan for 2015 and 2016.

27. Identify total number of donations from Michigan for 2015 and 2016.

All items shall be produced to the Attorney General by June 15, 2017.

Produced items should be accompanied with a signed statement under oath from an officer of Healing American Heroes confirming the truthfulness of the responses and produced items.

STATUTORY AUTHORITY

The laws of the State of Michigan, specifically the Charitable Organizations and Solicitations Act, 400.271 et seq., authorizes the Attorney General to regulate charitable solicitations in Michigan.

MCL 400.291 states:

(1) The attorney general may investigate a complaint from any person in whatever manner the attorney general considers appropriate and may investigate on his or her own initiative any person that is subject to this act. The attorney general may require a person or an officer, member, employee, or agent of a person to appear at a time and place specified by the attorney general to give information under oath and to produce books, memoranda, papers, records, documents, or other relevant evidence in the possession of the person ordered to appear.

(2) When requiring the attendance of a person or the production of documents under subsection (1), the attorney general shall issue an order setting forth the time when and the place where attendance or production is required and shall serve the order upon the person in the manner provided for service of process in civil cases at least 5 days before the date fixed for attendance or production. The order shall have

7

0077

the same force and effect as a subpoena and, upon application of the attorney general, the order may be enforced by a court having jurisdiction over the person or the circuit court for the county of Ingham or for the county where the person receiving the order resides or is found, in the same manner as though the notice were a subpoena. If a person fails or refuses to obey the order issued by the attorney general, the court may issue an order requiring the person to appear before the court, to produce documentary evidence, or to give testimony concerning the matter in question. Failure to obey the order of the court is punishable by that court as contempt. The investigation may be conducted by an assistant attorney general or other person designated by the attorney general. The attorney general or other designated person may administer the necessary oath or affirmation to witnesses.

You are directed not to destroy, transfer, or otherwise remove from your possession or control any document or other item responsive to the above requests.

Any questions should be directed, in writing, to the undersigned Assistant Attorney General. This Order remains in effect unless it is rescinded or modified in writing by the Department of Attorney General.

BILL SCHUETTE Attorney eneral

,,1 fj/ y /. I , '( (} '(,,,

By: 1/'1 V .· -

William VR. Bloomfir, (P68515) Assistant Attorney eneral Corporate Oversight Division P.O. Box 30755 Lansing, MI 48909 Telephone: 517-373-1160 [email protected]

8

0078

Exhibit E

0079

CHARLES H. NAVE, P.C. 316 Mountain Avenue, SW, Roanoke, VA 24016

Tel: 540 345 8848 Fax: 540 301 4296

Mr. Joseph J. Kylman, Auditor State of Michigan Department of Attorney General Charitable Trusts Section

VIA ELECTRONIC MAIL: [email protected]

Re: Healing American Heroes, Inc. ("HAH") / CS 44560

Dear Mr. Kylman,

Admitted in Virginia, Maryland and the District a/Columbia

I am writing in response to your letter dated May 18, 2017 regarding the above-referenced client.

Included with this response is a document named "170620 HAH MI Response.pdf' that contains the information requested in your document named "170522 HAH MI Investigative Order.pdf' also dated May 18, 2017. There are also a number of additional documents included with this response that are referenced in the document named "170620 HAH MI Response.pdf.''

I believe these documents answer all of the questions raised in your letter and provide all of the documentation you have requested. If not, or if you have further questions, please do not hesitate to contact me. My client is eager to supply you with the materials you may need.

In addition to the attached information, my client strenuously denies any allegations of fraud, misconduct, or deception. Healing American Heroes (HAH) has always striven to pursue its charitable mission with the greatest integrity and in an ethical manner.

HAH has relied on competent, trained professionals to provide them with legal, financial, and fundraising advice and is fully satisfied with their services. These professionals, including their auditor, have advised HAH that they believe HAH is operating in accordance with generally accepted accounting principles (GAAP) and is meeting the purpose, audience, and content criteria related to GAAP in the area of joint costs as detailed in the attached document "Accounting for Joint Activity.pdf' provided to HAH by their accounting professionals.

Overview:

The purpose of the mailings in question is to help HAH accomplish its mission, which is:

"To enlist the public's aid in supporting veterans, military retirees, active duty military, their families and caregivers, injured as a result of the Global War on Terrorism. To provide cultural and recreational experiences for the wounded, and their families, so that they may heal as a whole - mind, body and spirit as a result of service in the armed forces. To support first responders, chaplains, and medical personnel injured while serving in the armed forces."

0080


PAGE2

The audience for the mailings is chosen for their likelihood to either need the services provided by HAH or for their likelihood to know others who need the services provided by HAH. The audience contains those who have not received previous communications from HAH, those who have not previously responded to communications from HAH, previous donors, and previous non-donating supporters.

The content of the mailings includes a call to action that requests referrals for those needing the services provided by HAH in addition to educating the public on the need for those services, which is vital to HAH fulfilling its mission, and in addition to requesting contributions. Some mailings. also contain calls to action for prayer, to sign a card of support to be delivered to an injured soldier, or tips on how the reader can help local wounded soldiers and their families ( e.g. drive them to medical appointments, bring them dinner, run errands for them, etc.) The need for and benefits of the specific calls to action are explained or are otherwise self-evident or apparent.

The content of the mailings fulfills a necessary function by educating the public on the burdens carried and the barriers faced by those that HAH serves (including content in the paragraphs your office singled out for re-allocation). This is in accordance with its mission and in support of its mission. HAH believes it is important to educate the public on facts they may not know and doing so is consistent with HAH's program objectives. The mailings benefit both the recipients of the mailings and society as a whole and will help HAH accomplish its mission.

HAH's accounting and auditing professionals, therefore, have advised that reporting joint costs in this manner is appropriate and required.

My client does not agree with your characterization that they have submitted financial statements not in accordance with generally accepted accounting procedures (GAAP), that they have submitted financial statements and an IRS Form 990 that materially misrepresent its charitable activities, or that they have submitted documents to the Michigan Attorney General that contain a materially false statement.

My client requests that you consider the following information explaining why there might be differences between your allocation of its expenses and my client's allocation of its expenses as shown on their IRS Form 990 and in their financial statements.

Methodology used per GAAP and SOP 98-2:

HAH uses a Physical Units methodology that also (a) takes into account the cost of each component of the mailing and (b) that weights the components accordingly.

Since your office does not have access to that cost information for each mailing and its components, and, instead, is likely relying on summary information on the IRS Form 990 and line counts ( or similar methodology) alone, your version of a Physical Units method will almost certainly arrive at a substantially different result.

0081


PAGE3

The accountants that recommended the specific methodology that HAH uses advised that a costweighting process is the most precise way to do the allocations, since relying on line counts alone, without the cost-weighting, could inappropriately inflate the significance of less expensive components or inappropriately deflate the significance of more expensive components.

Indeed, multiple accounting professionals and auditors have said the methodology used by HAH is highly rational and in accordance with 98-2.

My client's auditor has specifically stated that for purposes of audit testing of the joint cost allocations, copies of each of the mailings during the year were received along with the allocation percentages. A sample of mailings was examined and tested against the percentage allocations provided to determine reasonableness within the criteria of 98-2. The auditor has stated that their audit procedures did not detect any material differences in the calculation and allocation of the joint costs incurred by HAH, and the allocation method used appeared to have been applied reasonably and consistently.

SOP 98-2 section .16 states simply that "The cost allocation methodology used should be rational and systematic, it should result in an allocation of joint costs that is reasonable, and it should be applied consistently given similar facts and circumstances." My client's auditor believes HAH has met this standard and applied their allocation methodology in accordance with 98-2.

To provide further detail on the methodology used by HAH, each component of each mailing (e.g. letter, reply form, etc.) is reviewed line by line. Each line of the component is marked with its purpose (i.e. fundraising, program, management & general).

The package as a whole is then assessed for the cost of those components and each component is weighted by its approximate cost in relation to the total cost of the mailing and is assigned a number of the parts ( or percentage) of each mailing.

Once the components of each mailing are allocated by purpose and weighted by cost, the percentage of each component devoted to each of the purpose categories is calculated, totaled, and then applied as a percentage to the total cost for the mailing. This total cost includes expenses such as postage and mailing list rentals that are necessary for the mailing to exist, but which do not bear words or a message of any kind.

Note that, on the advice of accounting and auditing professionals, the outbound envelope and inbound envelope are not individually allocated, but are assigned the same overall percentage as the mailing's contents.

The spreadsheet used to do these calculations for the 2015 mailings is attached for your information (2015HAHAllocation Worksheet.xlsx).

This information is then provided to HAH' s accountants and auditor who use it to prepare the financial statements and IRS From 990.

0082


PAGE4

Allocation of Caging Services:

In addition, and as explained in my client's original response dated April 21, 2017, my client does not allocate 100% of the expenses relating to "Caging Services" to fundraising as your office has done.

As explained in my client's April response, "Caging Services" includes the opening and processing of all mai 1 regardless of contents, and significant numbers of letters are processed that do not contain donations.

The "Caging Services" category, therefore, includes opening all envelopes and correspondence from the public in response to mailings and then handling the contents accordingly ( e.g. depositing checks, recording responses for HAH's database, responding to requests for information on or referrals for HAH's programs, requests to be omitted from future mailings, etc.). Many of these envelopes do contain program-related or administrative items from the public and from those requesting HAH's services. This is contrary to the assumption in your letter that "Caging Services" only involves opening envelopes from donors.

Summary:

The two differences mentioned above are likely to result in a substantial discrepancy when comparing to the figures your office has calculated to those my client has calculated. In addition, of course, is the inherently subjective nature of joint cost allocations.

My client does its best to apply the instructions and guidelines on joint cost allocations given to it by independent accounting professionals who are well-versed in SOP 98-2. They are reliant on the accounting and auditing professionals they have hired, and those professionals have approved of the way my client does joint cost allocations.

It is, of course, possible that my client has made a mistake, but, if so, it is a mistake and not an intentional falsehood. Again, my client believes it is performing allocations in accordance with GAAP and SOP 98-2 based on the advice of the independent professionals they have hired. If you believe they have made a mistake, they would appreciate you sharing with them the package samples you have re-allocated so that they can review those and address any mistakes appropriately with their accountant and auditor.

My client and I look forward to discussing these matters with you further at our informal conference, as my client is eager to resolve any misunderstandings or any mistakes you have identified.

Sincerely,

Charles H. Nave,

Charles Nave, Esq.

Digitally signed by Charles H. Nave, Esq.

E DN: cn=Charles H. Nave, Esq., o=Charles H. Nave, P.C., Sq, ou=Charles H. Nave, P.C., email=charlie@nave-law. com, c=US Date: 2017.06.22 17:26:24 -04'00'

0083

ORDER TO PRODUCE

Attorney General Bill Schuette ORDERS you to produce the following books, records, documents, and information and to respond to any questions:

Fundraising and solicitations

After reviewing HAH's April 21, 2017 response, we have additional questions. The following information and documentation must be provided by June 15.

[Extension granted to 6/22]

1. Item Id of auditor Joe Kylman's March 21, 2017 letter requested information related to the auditor's conclusion regarding the purpose of the joint cost activity. Your response stated, "For the program fulfillment allocation by Texas Operating, the 'assistance spreadsheets' were made available for audit review and testing." Please explain.

Joint Cost Allocations relate directly to the mail program expenses and are based on the mail package analysis. HAH'S auditor has confirmed the following: For purposes of audit testing of the joint cost allocations, copies of each of the mailings along with the allocation percentages were provided to the auditor. A sample of mailings was examined and tested against the percentage allocations provided to determine reasonableness within the criteria of SOP 98-2. The audit procedures did not detect any material differences in the calculation and allocation of the joint costs incurred by HAH, and the allocation method used appeared to have been applied reasonably and consistently. As for the portion of our previous response regarding "assistance spreadsheets were made available for audit review and testing," that statement was referring to the back-up information provided to the auditor, in addition to disbursement samples, for testing the program fulfillment expense allocation, not part of the joint cost allocation. Please note that joint cost allocation is a subset of program fulfillment expense allocation. In other words, information relevant to joint cost allocation is relevant to program fulfillment expense allocation; but information relevant to program fulfillment expense allocation is not necessarily relevant to joint cost allocation. We regret any confusion our April answer may have caused when we volunteered information not strictly related to joint cost allocation.

2. Item 3 of auditor Joe Kylman's March 21, 2017 letter requested both an explanation and a schedule "detailing the rehab event attendance and

1

0084

support program in the amount of $112,577 from Schedule I of the 2015 Form 990. The response provided a schedule, but no explanation.

a. Please explain the "rehab event attendance and support program."

HAH supports its mission of "serving the physical, spiritual, and emotional needs of our wounded warriors and their caregivers" by providing financial (and other) assistance in their rehabilitation. Some rehabilitation involves travel, overnight lodging, and related expenses to participate in athletic and non-athletic therapeutic events for wounded warriors. HAH assists wounded warriors by providing financial assistance to participate in these events and by providing financial assistance to the entities that organize these clinics. Some of these events also include caregivers. HAH detailed each of these expenses in column F labeled "Memo/Description" in the spreadsheet provided in our April 21, 2017 response. We have again included the spreadsheet with this response for your convenience (see ''#2a -- Att3 HAH Program Fulfillment 2015 Rehabilitative Events & Services.xlsx"). Please let us know if that column does not appear when you open the spreadsheet.

b. Explain what expenses qualify for this program.

Expenditures qualifying for allocation to the rehabilitative events & supplies category in the Statement of Functional Expense Allocation (See page 5 of "#2b - HAH FY2015 Audited Financial Statement.pdf11

) include: Travel, lodging of veterans & caregivers attending various rehabilitative events, sponsorship of rehabilitative events relating to our mission statement, welcome packets and gifts for event attendees (veterans & caregivers) which often include commemorative items, special health needs items, resource & support service information, and gift and phone cards to soldiers and veterans in medical facilities.

c. Are wounded soldiers or veterans attending these events?

Yes. Caregivers are also attending these events. HAH's mission includes providing assistance to caregivers for wounded warriors.

d. Several of the events listed in the schedule use the word "sponsor" in the description. Explain the purpose of these sponsorship events.

HAH partly defrays the costs associated with organizing these rehabilitative events for soldiers, veterans, & their families by "sponsoring" (i.e. providing financial assistance to) the entities that organize these events. The events vary in providing physical, emotional and/or spiritual wellness. Additionally, some rehabilitative events provide respite opportunities for caregivers.

3. In the schedule HAH produced showing financial aid to active duty

2

0085

soldiers of $207,535, explain the $3,734 in total expenses paid to AT&T Data and AT&T Wireless described in the schedule as "Bruce Burgess - 1st participant in DVBIC smart phone apt monitoring program/ Indian Head, MD."

Sgt. Burgess incurred a traumatic brain injury (TBI}. The Defense & Veterans Brain Injury Center (DVBIC} is a part of the US military health system. DVBIC has a cell phone program that includes software that allows case managers to help veterans and soldiers with their time management and to setup and send reminders to the veteran so that appointments and classes are not missed by those with memory issues as a result of their brain injury. Normally, these wounded warriors must pay for this service out of their own pockets. In Sgt. Burgess' case, though, HAH paid for this service.

4. Form 990, Part III, Item 4a describes two HAH programs: a public education and awareness program and also a program to provide resource and support services information to family members and caregivers as they care for and transition military service members back into the community. Please explain how the second program operates. The response should include, but not be limited to, the following:

When in contact with a veteran or caregiver during the application process, while attending events, while visiting hospitals, and by sharing on our website and social media, HAH makes veterans and caregivers aware of other resources

that are available to them. Although HAH itself does not provide these resources, HAH is aware of them and knows that they are relevant to the individual veterans and caregivers. Such resources include access to mobility equipment, VA benefits or medical assistance the veterans are not receiving, or specialty hospitals/clinics of which they may not be aware that are specific to

their injury in both the civilian sector or military medical facilities. HAH

provides information that puts these veterans and caregivers in touch with

those resources that are outside of the scope of the assistance HAH provides.

a. Where does HAH operate this program? Does HAH provide face-to-face services?

HAH operates this program primarily from Round Rock, TX via phone, email, internet, and social media. HAH also operates the program in person during hospital visits and other on-site visits.

b. Provide a schedule of families and caregivers that were assisted in each of the years 2015 and 2016. The schedule should provide the name and address of the family, the nature of the resource and support services information provided, and cost of the services provided to the family.

3

0086

A schedule of families & caregivers assisted in 2015 was previously provided & is included again with this response for your convenience (see "#4b -- Att2 HAH Program Fulfillment 2015 Soldiers, Veterans & Caregivers.xlsx" and "#2a -- Att3 HAH Program Fulfillment 2015 Rehabilitative Events & Services.xlsx). A schedule for 2016 is attached (see "#4b -Att4" and "#4b -Att 5"). Please see the "Memo/Description" column of each spreadsheet for a brief description of the "nature of the resource and support services ... provided." City and state have been provided for each recipient of assistance, but we are unable to provide street address without the permission of the recipients due to privacy concerns.

HAH has provided direct assistance of over $1 million to over 600 soldiers/veterans & their families, has helped over 300 soldiers/veterans & their families obtain over $500,000 in assistance from other non-profits, and has helped over 500 additional soldiers/veterans and their families with over $500,000 through rehabilitative events & VA facilities.

These include soldiers such as these from Michigan:

"I reached out for help from Help Our Wounded after I had lost my job due to an injury that left me unable to work. I needed to relocate near family to assist me during this difficult time. Thanks to their organization I was able to relocate with my son. And now we have the family support we need to heal and thrive. I am doing better physically and mentally. Thanks for all of their support. You really did make a difference." Carla Sharp, $2,000 relocation expenses

"I am writing this letter in response to the amazing support we received from Help Our Wounded in 2015. Our family was in a difficult position between medical retirement and VA benefits and this organization went above and beyond in helping our family in our time of need. Not only did they provide financial assistance, but their efforts allowed us to attend a family reunification retreat that further solidified the bonds so desperately needed as we adjusted from military to civilian life. I am so thankful for their support and continue to be very grateful for this organization." Jason & Danielle White, $1,500 medical expenses for traumatic brain injury treatment, vehicle repair, & rental car expense to attend a rehabilitative event.

c. What were the costs of this program in each of the years 2015 and 2016?

2015: $320,112 (as stated on page 10 of the 990 / Part IX #2) 2016: $407,585.

d. Why is this program not listed separately as required by the Form 990 instructions? It may be necessary to amend the Form 990.

This program is merely one aspect of the Education & Awareness Program. It is not a separate program. HAH is unaware of any IRS instruction that

4

0087

1

compels organizations to report various aspects of a program service as separate program services.

5. Form 990, Part III, line 4b describes HAH's programs to provide financial assistance. However, the space to report the dollar amount of grants given is blank. Please provide this information. It may be necessary to amend the Form 990.

The Grants portion of expenditures is the $320,112 as disclosed on page 10 of the 990. The amount of grant expenses should have been included on this line, but was unintentionally omitted. It is required for 501(c)(3) organizations, and HAH regrets this error. The return can be amended as necessary to include the required information. The amount was properly included in Part IX, line 2b.

6. Ten of the fifteen solicitation packages 1that you provided requested contributions to pay for phone cards for soldiers. An eleventh package asked for donations to buy gift cards. However, HAH's Form 990 makes no mention of phone card assistance or gift card programs. Identify where the costs of these programs are found on the Form 990.

The costs of the phone card & gift card assistance is part of Program Fulfillment which is listed on Page 10 of the 990 / Part IX #2 (Grants and other assistance). This includes: Financial, Mortgage/Rent & Utility Assistance; Medical Supplies & Devices, Transportation & Housing during Medical Procedures; Phone & Gift Cards (e.g. grocery & fuel) and Rehabilitative Events Attendance, Travel, Lodging and Support.

As the solicitations suggest that the phone card program was HAH's primary program, it may be necessary to amend the Form 990.

The term "primary program" does not appear in the Instructions for IRS Form 990 and HAH, its attorney, accountant, and auditors are unaware of the precise legal definition of that locution in this context. Thus, we cannot even begin to determine whether this issue should cause HAH to amend its Form 990. The phone card is one component of HAH's mission & program, and is not a primary program, as that term is commonly understood. HAH has never represented to the public that the phone card program is a "primary program."

Phone Card Solicitations

7. Explain how the phone card program is operated and how HAH

The ten packages are: HS1501, HS1502, HS1503, HS1504, HS1506, HS1507, HS1508, HS1509, HS1513, and HS1514.

5

0088

distributes the cards.

HAH distributes phone cards via trackable shipping methods, in person, and

at rehabilitative events to active duty soldiers, veterans, and caregivers, and to inpatient and outpatient VA facilities and hospitals for distribution to their

patients. We receive direct requests from VA facilities & from soldiers & veterans. The majority are distributed to deployed troops, wounded troops

and families at Fisher House and at Landstuhl Regional Medical Center in

Germany and to hospitalized wounded and spinal cord injury patients. All are provided in response to requests after review of the request and assessment

of need.

8. How many phone cards were distributed in each of the years 2015 and 2016?

In 2015 1,000 phone cards were purchased, but none were distributed until

2016 when 1,400 were distributed.

9. What was the source of the phone cards? Were the cards donated or purchased by HAH?

Purchased by HAH from Speedypin, LLC.

10. What was the cost of the phone cards in 2015? In 2016?

In 2015, the cost of the phone cards purchased was $5,030.

In 2016, the cost of the phone cards purchased was $5,058.

11. Identify shipping costs, distribution costs, or any other costs for the phone card program for the years 2015 and 2016.

We do not have this cost broken out separately from other shipping or

distribution expenses.

12. What was the total cost of the phone card program in 2015? In 2016?

2015: $5,030.00

2016: $5,058.42

13. The solicitation packages emphasize that the donor will "sponsor" phone cards to soldiers, using phrases that personalize the request, such as:

"Here is your chance to sponsor one, two, or even three Emergency Phone Cards for as little as $10 and show our young warriors they are in your thoughts."

"Will you make a donation of $20, $10, $15- or even more

6

0089

- and help us meet our goal of making sure every deployed soldier has an Emergency Phone Card in his or her pocket?

"Your cards will be shipped to bases ..... "

"Your gift will help us supply Emergency Phone Cards like the ones enclosed with this letter."

"Will you return the check I sent with a contribution to help our Emergency Phone Card program?"

"Your donation of $20, $10, or $15 will help us put a phone card directly into the hands of a brave wounded soldier who needs your assistance!"

"If you do one thing for our brave Wounded Heroes, will you help one call home?"

"My contacts have told me that there are not enough phone cards for our Wounded Heroes. That's why, if you can only do one thing for our soldiers today, won't you please make a tax-deductible gift of $10, $15, $20 or more so we can provide the prepaid international phone cards they need to call home, and help them in every other way we can?"

"Please will you sponsor, one, two, or even three Emergency Phone Cards like the ones I've enclosed in this letter? The cards you sponsor will each allow a soldier to call home FREE in an emergency."

"Sponsored cards are not for "everyday use" - the card you sponsor is for true emergencies or those once a year . " occas10ns ....

"Somewhere there's a soldier who deserves a free call horn e- here's YOUR chance to help him ... "

"With help from concerned friends like you, I'm able to provide free phone cards like the one I've enclosed to wounded soldiers in Afghanistan and in hospitals like Walter Reed, where the most severely wounded soldiers arrive from overseas."

Does HAH account for funds received from these packages as funds restricted to the phone card program? If not, please explain.

7

0090

These funds are not restricted. The mailings state the donations will go for

phone cards and other much-needed assistance. The phone card program is

an example used in the mail packages. Each mailing references some or all

of the types of aid and support provided to eligible persons. Some examples

follow.

Moreover, HAH's financial reporting (specifically, its Audited Financial

Statement and IRS Form 990) was prepared by independent auditors who

compiled and presented the data consistent with Generally Accepted

Accounting Principles.

"All gifts received will help pay for pre-paid phone cards, which are distributed at no

charge, and other aid, support and services needed by our Wounded Heroes and their families."

"That's why, if you can only do one thing for our soldiers today, won't you please

make a tax-deductible gift of $10, $15, $20 or more so we can provide the prepaid

international phone cards they need to call home, and help them in every other way we can?"

"With your support, HOW can continue to help these heroes with free phone time -

and with specialized equipment, mobility equipment, therapeutic items the VA does

not cover, and much more."

"Please - can you find it in your heart to make a gift of $15, $10, $20 or more and

help us provide gift cards to severely wounded soldiers and their families during the

Holiday Season - and continue providing the other forms of assistance we offer?"

"With your support, HOW can continue to help these heroes with free phone time -

and with specialized equipment, mobility equipment, therapeutic items the VA does

not cover, and much more."

"A card can buy a birthday gift for a child, pay for a medical expense that is not

covered by the VA, or buy groceries when the next disability check is still a week

away ... or it can help a soldier in the hospital buy crossword puzzle books, videos or

games that keep the mind occupied when the future is bleak ... "

"Please use my gift to help put FREE cards in their hands and support the work you

do to help wounded warriors and their caretakers!"

"Here's my donation. Please use it to provide grocery cards, fuel assistance, gift

cards, and other critical help to the most needy families on your list."

"That's where you come in. Will you make a gift of $10, $15 or more today? Your

sponsorship allows Help Our Wounded to help pick up where the VA and the

Department of Defense stop; you help make life a little easier for our wounded

heroes and a little more bearable for their wives and children."

8

0091

"Your donation helps families with the cost of travel to and from the hospital, special equipment needed by those who are severely handicapped by their wounds - even help with the rent and the groceries because without help like this they simply would not be able to afford these expenses. Your gift might help us step in when the eviction notices come - as they sometimes do - or when the bank says they are going take back the car."

"Your sponsorship gift will help me continue supplying aid such as grocery cards, travel assistance, free phone cards for those in VA hospitals, help with home or vehicle repairs, education assistance for those struggling to start new careers, clothing for children, and many other items that are requested."

"Your tax-deductible gift means so much to them and helps them by providing not only phone cards, grocery cards, and gift cards like the ones I enclosed, but a variety of urgently needed emergency assistance. Looking at my desk I see requests for help with insurance, baby supplies, medical bills, rehabilitative equipment, utility bills and much more. I hope you will be able to help me show them they are NOT forgotten!"

"Please, help our heroes and their families fight loneliness and despair by making a donation of $10, $15, or even $20 today. Your tax-deductible gift means so much to them and allows us to continue providing not only phone cards, but a variety of urgently needed emergency assistance, and help with costs not covered by the VA or the military."

14. For each of the ten phone card solicitation packages referred to above (see footnote 1 ), provide the following information for both national and Michigan solicitations: the dates the packages were mailed, the number of packages mailed, the number of donations received, and the dollar amount of donations received.

HS1501; mailed 1/30/15, 2/9/15, 2/18/15, 2/27 /15; Pieces mailed nationally: 483,864 Pieces mailed in Ml: 17,119 Number of donations received: 16,304 Number of donations from Ml received: 573 Dollar amount of donations received nationally: $317,225.97 Dollar amount of donations received from Ml: $12,534.00

HS1502; mailed 2/27 /15, 3/2/15, 3/16/15, 3/25/15 Pieces mailed nationally: 635,423 Pieces mailed in Ml: 19,935 Number of donations received: 25,431 Number of donations received from Ml: 851 Dollar amount of donations received nationally: $305,513.81

9

0092

Dollar amount of donations received from Ml: $10,016.25

HS1503; mailed 3/30/15, 4/6/15, 4/20/15, 4/29/15 Pieces mailed nationally: 381,156 Pieces mailed in Ml: 11,973 Number of donations received: 11,268 Number of donations received from Ml: 260 Dollar amount of donations received nationally: $186,959.11 Dollar amount of donations received from Ml: $9,023.00

HS1504; mailed 4/27 /15, 4/29/15, 5/4/15, 5/18/15, 5/27 /15 Pieces mailed nationally: 537,638 Pieces mailed in Ml: 18,522 Number of donations received: 14,684 Number of donations received from Ml: 536 Dollar amount of donations received nationally: $288,107.86 Dollar amount of donations received from Ml: $10,431.11

HS1506; mailed 6/26/15, 7 /10/15, 7 /17 /15, 7 /27 /15 Pieces mailed nationally: 656,324 Pieces mailed in Ml: 20,669 Number of donations received: 26,069 Number of donations received from Ml: 842 Dollar amount of donations received nationally: $329,480.50 Dollar amount of donations received from Ml: $10,716.05

HS1507; mailed 7 /27 /15, 8/17 /15, 8/26/15 Pieces mailed nationally: 370,941 Pieces mailed in Ml: 12,183 Number of donations received: 12,835 Number of donations received from Ml: 386 Dollar amount of donations received nationally: $204,348.77 Dollar amount of donations received from Ml: $7,205.00

HS1508; mailed 8/24/15, 9/9/15, 9/14/15 Pieces mailed nationally: 365,629 Pieces mailed in Ml: 13,330 Number of donations received: 11,498 Number of donations received from Ml: 426 Dollar amount of donations received nationally: $238,727.81 Dollar amount of donations received from Ml: $8,643.00

HS1509; mailed 9/29/15, 10/5/15, 10/12/15, 10/19/15, 10/28/15 Pieces mailed nationally: 499,740 Pieces mailed in Ml: 17,126 Number of donations received: 17,406 Number of donations received from Ml: 634

10

0093

Dollar amount of donations received nationally: $249,563.74 Dollar amount of donations received from Ml: $9,445.14



Gift Card Solicitation

15. Solicitation packages #1510 and #1512 asked for money to provide gift cards to severely wounded soldiers and their families. Explain how the gift card program is operated and how HAH distributes the cards.

HAH distributes gift cards via trackable shipping methods or in person to active duty soldiers, veterans, & caregivers. We receive direct requests from these soldiers, veterans, & caregivers for help with expenses such as families traveling to see a veteran/soldier in the hospital, traveling to the funeral of a loved one, or gas, moving, food or lodging expenses. Gift cards are requested by Case Managers and Social Workers, for those needing the assistance described above, where a check or cash are not the most appropriate manner of providing a grant (e.g. cashing check on the move is too challenging, out-of-town check cashing is challenging, security of traveling with cash, etc.) All are provided in response to requests after review of the request and assessment of need.

16.How many gift cards were distributed in each of the years 2015 and 2016?

2015: 33 2016: 148

17. What was the source of the gift cards? Were the cards donated or purchased by HAH?

11

0094

All of the gift cards were purchased by HAH from companies such as Walgreen's, Sam's Club, and CVS.

18. What was the cost of the gift cards in 2015? In 2016?

2015: $2,583.30 2016: $8,712.12

19. Identify shipping costs, distribution costs, or any other costs for the gift card program for the years 2015 and 2016.

We do not have this cost broken out separately from other shipping or distribution expenses.

20. What was the total cost of the gift card program in 2015? In 2016?

2015: $2,583.30 2016: $8,712.12

21. For solicitation packages# 1510 and # 1512, provide the following information for both national and Michigan solicitations: the dates the packages were mailed, the number of packages mailed, the number of donations received, and the dollar amount of donations received.

HS1510; mailed 9/29/15, 10/5/15 Pieces mailed nationally: 64,868 Pieces mailed in Ml: 2,116 Number of donations received: 2,561 Number of donations received from Ml: 90 Dollar amount of donations received nationally: $39,441.00 Dollar amount of donations received from Ml: $1,577.00

HP1512; mailed 10/26/15 Pieces mailed nationally: 39,884 Pieces mailed in Ml: 1,380 Number of donations received: 2,066 Number of donations received from Ml: 69 Dollar amount of donations received nationally: $27,390.50 Dollar amount of donations received from Ml: $875.00

Other Requests

22. Several of the packages submitted included the following phrase:

"I've been able to help over 300 families who are caring for a severely wounded warrior, and have obtained grants and assistance for them totaling over $500,000- at no

12

0095

cost to them and with every cent that was donated going directly to them. 11 [emphasis added]

This assistance was arranged & coordinated by HAH via other non-profits with 100% of the funds going directly to the soldiers and families. This is in addition to funds contributed to HAH that HAH then distributed in assistance. For instance, HAH has worked with wounded soldiers and their families to arrange respite and home health aide assistance through Semper Fi's America's Fund, to arrange mobility devices and hand-cycles through the Independence Fund, to arrange travel through Luke's Wings, to arrange for assistance in building a totally accessible, environmentally-controlled Smart Home through the Gary Sinise Foundation, and to arrange for MP3 players with spiritual content to be provided to VA hospitals.

All of the reply documents in the packages that were provided to us include the following statement:

"Help our Wounded retains 100% of the funds contributed."

This language was required by the state of Florida. Fla. Stat. § 496.411(6)(c): "Each charitable organization or sponsor that is required to register .... Shall conspicuously display on every solicitation .... The percentage, if any, of each contribution that is retained by any professional solicitor that has contracted with the organization ... [and] the percentage of each contribution that is received by the organization." HAH uses the above quoted language because it has never retained a professional solicitor and because 100% of funds donated are deposited into a bank account controlled by HAH and then used for HAH's program service and other expenses.

Using figures from the 2015 Form 990, we calculate that the solicitations cost approximately $2.76 million, which equals 79% of the funds raised. Admit that the above phrases from the solicitations are false or misleading. Alternatively, explain why these phrases are not false or misleading.

These statements are not false, as explained above, nor do we believe they are misleading. The second statement was made solely to comply with Florida law.

23. Our previous letter requested samples of all soliciting materials used in 2015 for purposes of inquiring into joint cost allocations. Please supplement by providing all soliciting materials used in Michigan during 2015, 2016, and 2017. The materials should be marked to show the dates they were used in Michigan.

These materials are provided as attachments to this memo and each

13

0096

filename begins with 11#23 - 11•

24. Identify total amounts raised in Michigan for 2015 and 2016.

2015: $110,594.15 2016: $85,794.16

25. Identify total amount raised nationally in 2016.

$2,963,832

26. Identify total number of solicitations in Michigan for 2015 and 2016.

In 2015, there were 15 solicitation campaigns mailed into Michigan for a total of 192,227 pieces of mail. In 2016, there were 21 solicitation campaigns mailed into Michigan for a total of 159,675 pieces of mail.

27. Identify total number of donations from Michigan for 2015 and 2016.

2015: 6,426 2016: 4,658

All items shall be produced to the Attorney General by June 15, 2017.

[Extension granted to 6/22.]

14

nia exhibits part 1 - michigan.gov20, if your organization contracts with or otherwise engages the...

Documents