Investigation Of Nonprofit

May 23rd, 2012
05:10 PM ET



#CNN/@AC360 Reporting Prompts Senate Investigation
As a result of several reports on Anderson Cooper 360° on the Disabled Veterans National Foundation (DVNF), Senators Max Baucus (D – Montana) and Richard Burr (R – N.C) announced today that they will start an investigation into possible abuse of the foundation’s tax-exempt nonprofit status. The senators requested documents and records relating to their fundraising and marketing activities.

The Disabled Veterans National Foundation claims to raise money for disabled vets. According to their tax filing they have raised close to $56 million in the last three years. Anderson Cooper 360° and CNN’s Drew Griffin have been investigating this group for years and what they found is shocking. Of the $56 million dollars, AC360° has found that none of that money has actually gone to help veterans groups directly. Much of the donations are things that the group did not want, ask for or need – like 11, 520 bags of coconut M&Ms!

Drew Griffin has tried for more than a year to speak with the president of DVNF, Pricilla Landry Wilkewitz, to find out what happened to the money they raised. Griffin even went to her home but she declined an interview.

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May 23rd, 2012
05:18 PM ET

Tonight on AC360: Senator Launching Investigation into Vet Charity
Our Keeping Them Honest reports on the donations collected by the Disabled Veterans National Foundation (DVNF) have gotten the attention of lawmakers on Capitol Hill. Senate Finance Committee Chairman Max Baucus is demanding answers from DVNF. The Montana Democrat, along with Republican committee member Sen. Richard Burr of North Carolina, has launched an investigation to determine if the charity is abusing its tax-exempt non-profit status.

As we've been reporting for weeks, tax records show DVNF raised nearly $56 million over three years. But here's the problem: Not one dime has gone directly to help disabled veterans. Instead, CNN's Drew Griffin discovered the charity sends free stuff to veterans groups - stuff they say they didn't ask for and don't need. We're talking about thousands of bags of coconut M&Ms, bulk shipments of chef's aprons and military dress shoes. The veterans groups have had to sell the items to raise money so they could buy items vets actually do need.

So, where did the nearly $56 million donated by Americans go? Griffin followed the money trail to a company called Quadriga Art, a company that specializes in fundraising. Quadriga Art and its subsidiaries have more than 500 charities on their client list, including DVNF. A source who had first-hand dealings with Quadriga tells us it’s the "financial equivalent of heroin addiction for charities."

Tonight on 360°, Griffin reports on the Quadriga connection to veterans charities. Plus, Anderson Cooper talks with Sen. Baucus about his investigation. Watch the preview and tune in at 8 and 10 p.m. ET