"I'd be happy to compare what we do with the Trump Foundation which took money from other people and bought a six-foot portrait of Donald. I mean, who does that? It just was astonishing," she said.
In response, Trump said that his charity is a "small foundation."
"People contribute, I contribute. The money goes 100 percent — 100 percent goes to different charities, including a lot of military. I don't get anything. I don't buy boats. I don't buy planes," Trump said.
However, the Washington Post has reported that Trump has not contributed to his own charity since 2008, and the paper has also reported that Trump bought himself a six-foot portrait of himself and a football helmet signed by Tim Tebow with the foundation's money.
Wallace also jumped in to note that Trump used the foundation to settle personal legal disputes.
"Wasn't some of the money used to settle your lawsuit, sir?" Wallace asked Trump.
"No, it was we put up the American flag. And that's it. They put up the American flag. We fought for the right in Palm Beach to put up the American flag," Trump replied.
"But there was a penalty that imposed by Palm Beach County," Wallace interjected. "The money came from your foundation, instead of Mar-A-Lago or yourself."
Trump replied that "the money that you're talking about went to Fisher House, where they build houses for veterans and disabled."
Wallace and Trump were referring to a Washington Post report revealing that Trump used money from his charity to settle a legal dispute with Palm Beach County, which fined Trump $120,000 for violating local limits on the height of flag poles. Trump settled the issue by donating to a charity, Fisher House, but paid with money from his foundation.