Charity Status of Hospitals Is Next Target for Senate Watchdog

Sen. Charles E. Grassley, Republican of Iowa, told Forbes magazine that he is focusing on finding ways to prevent abuses at nonprofit hospitals. The senator has spent several years investigating wrongdoing at a range of nonprofit groups.

“If you’re poor, they charge you the going rate and then send the bill collectors after you and ruin your life,” said Mr. Grassley. The senator is the senior Republican on the Senate Finance Committee, which oversees tax-exempt groups.

In a wide-ranging interview about his efforts to deal with charities, Senator Grassley said that the poor management of donations to charities helping deal with the aftermath of the September 11 attacks first motivated him to investigate charities.

He says he has been regularly frustrated by the actions of donors and nonprofit officials. For instance, he said, “too many people want to do their personal business using their foundations.”

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