Almost $1 million in losses and failure to file proper IRS forms prompts DAV closures

All of Wichita’s DAV stores — thrift stores whose proceeds benefit disabled veterans — have closed due to financial issues.

“They are closed, and they will never reopen,” said Edward Hartman, inspector general of the Kentucky-based national Disabled American Veterans nonprofit. “We are going to liquidate all of the contents.”

Chapter 4, the local Wichita chapter, lost its tax exempt status with the IRS after failing to file proper forms for three years.

“They lost their ability to operate,” Hartman said. “They lost their ability to generate revenue and accept donations.”

The national DAV organization learned of the IRS issue a month ago.

That prompted an investigation into the financial records of the local stores, which revealed $900,000 in losses over two years, he said.

“It has to be profitable,” Hartman said.

He said Chapter 4 had similar problems in 2016.

“And here I am again, so they’re done.”

Hartman was in Wichita this week to sort out what happened and what comes next.

Even the question of how many DAV stores there were wasn’t a simple one.

“That’s a very good question,” Hartman said.

The national office knew of four stores at DAV-owned buildings but then discovered two more in rented spaces.

Due to what Hartman called inadequate record keeping by Chapter 4, he said he’s not sure how many employees have been affected by the closures, but he guessed it’s about 50.

Trustees will sell the buildings the nonprofit owns.

At the end of that process, Chapter 4 will be given the proceeds to distribute to the DAV’s customary programs of service in the community if it’s deemed there’s someone responsible enough to distribute it.

Otherwise, the money will default to the state DAV organization to distribute.

The national DAV oversees 1,200 chapters in all 50 states plus the District of Columbia and Puerto Rico.

Hartman said Chapter 4 can continue to meet at a community center and still support disabled veterans.

Though the chapter can no longer have stores or property, he said, “DAV will always have a presence in Wichita.”

This story was originally published September 14, 2023 at 4:47 AM.