come in on a horse. >> reporter: nardizzi defended the charity's spending. >> if your only fixation is spending the most on programs, that is feeling good, but not necessarily doing good. you can run a lot of programs, spend a l, and have them be ineffective. >> reporter: many donors were outraged over allegations that a little over half of donations went to help wounded vets. fred and diane kane raised $325,000 with golf tournaments. >> i feel like i'm representing all of these people that have donated over the years. all of these seniors over 65 that, that have sent them $19 a month. all the people on fixed incomes. if nobody is going to talk about this right now, and it has the to be then it has the to be me. >> reporter: are you done with wounded warrior project? >> yes, except for my motion of trying to see change there. >> sources tell the cbs news the board received a financial audit. there are discussions under way about retired senior military officers considered to take over leadership of the organization. >> we'll be following up on this this important story. chip. thank you

. >> scott, wounded warrior project, chief executive officer, steven nardizzi, and giordano were fired by the board of directors after a meeting this afternoon here in new york. >> with a gift of $19 a month you can join wounded warrior project. >> reporter: by appealing to america's generosity, wounded warriors project raised more than $1 billion in donations since 2003. $300 million in 2014 alone. but while the money was pouring in, it was also flowing out. on lavish employee conferences. in 2014, $26 million. >> let's get a mexican mariachi band in there, the logo, put them on every staff members desk, get it catered, have a big old party. eric millette was a staff sergeant when he took a job with speaker. after two years he quit. >> i'll be damned if you will take hard working american's money, and drink it and waste it instead of helping brave men and >> reporter: more than 40 former employees told cbs news that spending by the charity was out of control. these two former employees were so fearful of retaliation, they asked us not to show their faces. >> it was extremely extravaga

ee reporter: former employees told us the excessive spending began when steven nardizzi took over as c.e.o. in 2009. they point to the 2014 annual meeting at a luxury resort in colorado springs as typical of his style. >> he rappelled down the side of a building. >> reporter: you mean to make a grand entrance? >> yes, and he's come in on a segway. he's come in on a horse. >> reporter: nardizzi has defended the charity's spending. >> if your only fixation is spending the most on programs, that's feeling good but not necessarily doing good. you could run a lot of program activities. you could spend a lot of money and have them be wholly ineffective. ma reporter: but many major donors were outraged over allegations that only a little over half of donations went to help wounded vets. fred and dianne kane raised f25,000 with golf tournaments. >> i feel like i'm representing all these people that have donated over the years, all these seniors over 65 that-- ntat have sent them $19 a month, all these people on fixed incomes. if nobody's going to talk about beis right now, and it has to be m

team building meetings, skyrocketed by more than 150% after nardizzi took over, $250,000 a year spent on snacks and sodas. less than 60% of the charity's funds went to the charity. most charities spend about 90%. >>> a dangerous murder suspect on the run for more than a week shot and killed in mississippi. rafael mccloud broke out of jail last week threatening a guard with a homemade knife and stealing his clothes. yesterday when he forced his way inside a home holding a man, his wife and 5-year-old son hostage in their bathroom. eventually the woman broke free and grabbed a gun and gave it to her husband who shot and killed mccloud. >>> in upstate new york two sisters have been found nearly a year after they vanished. and a woman has been charged with kidnapping. ky-lea and shaeleen fortner had not been seen since last april when they were waiting for a school bus. the girls now 16 and 14 were living with a foster family at the time of their disappearance. the woman charged with abducting them is said to be an acquaintance. >>> well, this weekend we dial the clocks ahead by one hour

but his anger has subsided now that the charity's top two officials, steven nardizzi and f giordano,e been fired. >> it feels good. it really does. and-- and i didn't do it for me. i did it for all the veterans that wounded warrior project claims to serve. >> reporter: for the first time in years, he's guardedly optimistic about the organization's future. but he also agrees with fred and dianne kane, who raised $325,000 for the charity with golf tournaments, that the ouster is only the first step. >> they need to change the culture, which, in my opinion, will require significant changes to the team, the executive team. i think they can right the ship, but it's going to take a lot of effort, and it's going to take a lot of effort to build up that good will again. we reporter: also weighing in today, the melia family, which founded wounded warrior project in 2003. in a statement, they accused nardizzi of going so far as to remove any mention of the melia family from the w.w.p. website and said donors have every right to be angry about the lack of stewardship shown by the immediate past

but his anger has subsided now that the charity's top two officials, nardizzi and giordano have been fired. i did it for veterans wounded warrior project claims to serve. >> he is guardedly optimist ache but the organization's future. he agrees with fred and diane cane who raised $325,000 for the charity with golf tournaments that the ouster is only the first step. awe they ned to changein need to change the culture which in my opinion will require significant changes to the team. the executive team. i think they can right the ship. but it's going to take a lot of effort and it's going to -- take a lot of effort to build up that goodwill again. >> reporter: also weighing in the melia family which founded wounded warrior project in 2003. in a statement they accused nardizzi going so far as to remove any mention of the melia family from the wwp website and said donors have every right to be angry about the lack of stewardship shown by the the charity's board of directors conceded in a statement that some policies procedures and controls at wwp have not kept pace with the organization's

spent some donor do cbss don't miss the boston month since cbs news broke the story of lavish steven nardizzi to respond. we sat down with two major donors who are demanding accountability. >> reporter: with two sons for wounded was more than a cause for fred and diane caikane, it was a since 2009 the dollars that should have been going to the service men and women that were injured and it's a real repter:out ra outro cancelled this year's golf tournament and thought steven nardizzi should be firped. >> i said where is this guy? not be invo has learned kane is one ordered a review by independent auditors and that it would be s projects have done a lot of good things for our veterans. i've done stories but this is a time when they shouldtaheourishment for beautiful healthier looking skin. aveeno® naturally beautiful results® i'm my bargain detergent, ithift couldn't ket aetter clean. voted 2016 product of the year. if it's got to be clean, it's got to be tide. hwhy use traditional aerosols. that are? is a multi-layered fragrance, spine to idl tw mark t

steven nardizzi an algae owner dan know, the ceo and chief operating officer were fired during a board meeting on thursday. the wounded warrior project has taken in more than a billion dollars worth of donations since 2003 but more than 40 former employees told cbs news the charity's spending was out of control, including millions of dollars on lavish conferences. the wounded warrior project released a statement calling some media reports on its conference spending inaccurate, but the charity says such events will be curtailed in the future. >>> coming up on the "morning news." prisoners on the run. an intense search is under way for escaped convicts in new mexico. >>> later, take off trouble? a passenger opens the wrong door and claiming he just wanted a bit of fresh air. this is the "cbs morning news." cbs morning news is sponsored by seabond denture adhesive. no pasty ooze! x with stronger, clean sea-bond. see me. see me. don't stare at me. see me. see me. see me to know that psoriasis is just something that i have. i'm not contagious. see me to know that... ...i won't stop until i

. >> reporter: the charity's ceo steven nardizzi is yet to respond. we sat down with two major donors who are demanding accountability. >> reporter: with two sons serving in iraq, raising money for wounded warrior project was more than a cause for fred and diane cainekane, it was a calling. since 2009 the two's charity tee off for a cause raised money for the wounded warrior project through golf tournaments in carolina. they honored fred kane with an award for being a vip donor. that is a big deal. >> yes. >> reporter: you were proud of that? >> i was very proud of it. >> reporter: but learning that help wounded vets came as a blow. >> then hearing there was this waste of money in donor dollars that should have been going to the service men and women that were injured and it was spent on their having a good time. it's a real disappointment. >> reporter:out rage outragejgedoutraged, kane cancelled this year's golf tournament and thought steven nardizzi should be firpeded. >> i said where is this guy? they told us he really needs to not be involved. you

. >>> wound warrior projects board of directors fired nardizzi and on thursday. it found a significant amount of donations was spent on lavish conferences.tionship chip reid broke this story. he's with us in studio 57. >> americans donate hundreds of millions of dollars to the wounded warrior project but months of allegations of waste the board of directors yesterday took action yesterday and sacked top two official. >> with a gift of 19 dollars a month you can join a wounded warrior pry appealing to the jon generosity of the american public, wound warriors project raised 2 in 2014 alone. but many say while the pouring was coming in it was flowing back out. >> let's get a caterer and have a big ole party. >> reporter: erick millette was millette is one of 40 former said spending by the charity was out of control. many pointed to the 2014 annual employee meeting at a luxury resort in colorado springs as typical of nardizzi's he repelled down the side of the building. >> reporter: repelled down the side of the building? on you mean to make a grand >> yes. he has co

nardizzi was making half a million dollars in salary. take a look at overhead.ing to reports, wounded warrior spending 40 or 50% on overhead, unlike other veterans organizations which spend 10-15% on overhead. if you look at fine print on numbers what they spend in 2013 alone, 30 million dollars on salaries, 24 million dollars on conferences. people that look at these things, deirdre, say this is way out of line. should have been spending a lot more on the veterans and a lot less on the execs. deirdre: everyone who has given money feels very much betrayed. jeff flock with us from chicago. >>> with more on this scandal, i'm bringing in our legal eagle analyst lis wiehl. these two executives, we heard numbers, half a million dollars. that's not what people think of when they were -- >> putting in $20, $10 and feel guilty if they don't put the money in. sending money every month, once they put the money in, i was talking to teresa who does our hair, i feel guilty if i don't put the $20 in every month, and now she feels betrayed! misappropriation, embezzlement. thes

late thursday, the wounded warrior project fired ceo steve nardizzi and the ceo al giordano following an independent investigation, which found, according to a statement, some policies, procedures and controls are in need of strengthening. >> it's a culture that was created by these guys and i think that that culture is systemic and they are going to need to change a lot more. >> while the money was pouring in, it was also flowing out. >> reporter: that culture came to light in a cbs news investigation, which claimed the wounded warrior project spent lavishly on travel and overhead, allocated a of its donations to veterans programs. connie chapman worked there for two years and says she was fired in a restructuring. >> i went to new york for less than 24 hours for a meeting of one of the chief executives. it was a lot, a lot of spending. >> reporter: the fired executives declined nbc news request for comment. the charity found that more than 80% of donations were spent on programming. >> i think it's damaging for all charities involved with veterans. people are just not going to give