Senate investigates veterans charity

The Disabled Veterans National Foundation could lose its tax-exempt status because of its spending patterns, a U.S. senator said Wednesday. Sen. Max Baucus, D-Mont., head of the Senate Finance Committee, announced the investigation into the foundation, which is registered as a 501(c)3 non-profit organization, CNN reported. "Our veterans should never be used as pawns in a scheme to exploit the taxpayers," Baucus said. "The tax exemption for charities exists to promote worthwhile causes like assistance to veterans, not to provide tax loopholes to abuse. DVNF has a responsibility to show it's genuinely helping veterans and playing by the rules." CNN said its investigation found veterans had received little of the $56 million the foundation had in the past three years, and that the foundation has paid $61 million to a direct-mail company and its subsidiaries. CharityWatch -- which CNN said is the largest U.S. charity watchdog organization -- gave the DVNF an F rating and said while little money goes to help veterans the foundation passes along donated items like hand sanitizer, candy and dress shoes. One small shelter serving veterans in Birmingham, Ala., received 11,000 bags of M&Ms candy, CNN said.