The DAV 3:1 Fundraising Rule, Explained in Plain Language

If you’ve spent any time around DAV chapters or departments, you’ve probably heard people mention the “3:1 rule.” It’s one of those long‑standing DAV fundraising restrictions that everyone knows about, even if they don’t always explain it clearly. So let’s break it down in a simple, informal way.

The basic idea is this:

A DAV subordinate (chapter, department, or any entity operating under DAV’s name) cannot raise more than three times the amount it spends on direct service to veterans.

In other words, if a chapter spends $10,000 on veteran services in a year, it shouldn’t be raising more than $30,000 through fundraising activities. If it wants to raise more, it needs to increase its service spending first.

This rule exists to keep DAV focused on its mission—not on running businesses, bars, bingo halls, thrift stores, or social clubs that end up becoming the main activity instead of serving veterans.

Why DAV Created This Restriction

DAV’s Constitution and Bylaws make it very clear that everything DAV does must support the mission of helping disabled veterans live high‑quality lives with respect and dignity. Fundraising is allowed, but only when it supports the DAV’s mission.

The 3:1 rule grew out of a simple concern: Some subordinate units were raising large amounts of money but spending very little on actual service. That’s a problem for a veterans’ service organization, and it’s a problem for public trust.

So, DAV put a guardrail in place:

• Service must come first.

• Fundraising must be tied to service.

• Chapters shouldn’t operate businesses that overshadow their mission.

The 3:1 rule is basically DAV’s way of saying: “Don’t turn your chapter into a bar or a bingo hall with a DAV sign on it.”

How the Rule Works in Practice

Let’s say your chapter spends money on:

• Transportation Network fuel and maintenance

• Service officer training

• Disaster relief

• LVAP activities

• Hospital service coordinator support

• Special events for veterans

All of that counts as service to veterans.

Now imagine your chapter wants to run a fundraiser; maybe a raffle, a cookout, a thrift store, or a bingo operation. Under the 3:1 rule:

• If you spend $5,000 on service, you shouldn’t raise more than $15,000.

• If you spend $20,000 on service, you shouldn’t raise more than $60,000.

The ratio is always the same: Your fundraising cannot exceed three times your service spending.

If it does, you’re out of compliance.

How This Connects to NEC Regulation 4

DAV’s National Executive Committee updated fundraising rules in 2024, especially for chapters running bars, lounges, bingo, thrift stores, and similar operations. The updated rule requires:

At least 10% of gross income from those operations must go directly to DAV

programs of service.

This doesn’t replace the 3:1 rule, but it reinforces the same philosophy:

Fundraising must meaningfully support veterans, not just keep the department/chapter doors open.

The NEC even has the authority to shut down a subordinate’s fundraising operation if it isn’t producing real support for DAV programs.

Why the 3:1 Rule Still Matters

Even though DAV has updated some of its fundraising regulations, the spirit of the 3:1 rule is still alive and well. It protects DAV in several important ways:

1. It keeps DAV mission‑focused - Fundraising is a tool—not the purpose of the organization.

2. It prevents misuse of DAV’s name - No one wants a DAV chapter turning into a bar with a token veterans’ program attached.

3. It protects donor trust - People give to DAV because they believe their money helps veterans. The 3:1 rule ensures that’s true.

4. It encourages chapters to invest in service - If you want to raise more, you have to do more for veterans. That’s exactly how it should be.

A Straightforward Way to Think About It - If you’re explaining this to a new chapter officer or volunteer, the simplest way to say it is:

“Your fundraising should never be bigger than your service. If you want to raise more, serve more.”

That’s the heart of the 3:1 rule.