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Trump Foundation Dissolved Under Fraud Investigation — Self-Dealing, Political Donations, Portrait Purchases

The Trump Foundation, a charitable organization, was found by the New York AG to have engaged in a pattern of illegal conduct including: making a $25,000 donation to Florida AG Pam Bondi (who was deciding whether to open a Trump University investigation), purchasing a $20,000 portrait of Trump, paying off legal settlements for Trump businesses, and illegally coordinating with the Trump 2016 presidential campaign. Trump had also used foundation money to pay personal legal settlements — including $258,000 to resolve lawsuits involving his businesses.

Record summary

Grade

Grade 2 of 5: Major Abuse of Power

Executive actions that exceed constitutional authority, circumvent statutory constraints, or weaponize government institutions for political ends. Scale and definitions

Status
Concluded
Incident date
Record updated
Location
New York, NY
Category
Corruption & Self-Dealing
Legal posture
Judicial finding
War-crime classification
Enabling conduct
Verification
Independently verified
ICC relevance
No
Sources
4 cited
Stable ID
trump-foundation-shut-down-fraud-charity
Victims
Charitable donors; legitimate charitable organizations that received less funding; veterans groups that received promised donations only after press scrutiny; Pam Bondi conflict-of-interest implications for Florida Trump University investigation
Alleged responsible parties
  • Donald Trump, Controlled and directed Trump Foundation; personally benefited from foundation funds— Donald J. Trump Foundation

Key points

  • The New York AG's investigation found the Trump Foundation engaged in 'a shocking pattern of illegality' including unlawful coordination with the Trump 2016 presidential campaign, self-dealing transactions benefiting Trump, and illegal political contributions
  • The foundation donated $25,000 to the political campaign of Florida AG Pam Bondi in September 2013 — an illegal contribution from a charity — while Bondi's office was reviewing whether to join a multistate investigation of Trump University; Florida did not join the investigation
  • Trump used $258,000 in foundation funds to settle legal disputes involving his for-profit businesses — including a $100,000 payment to resolve a legal dispute with the town of Palm Beach, and a $158,000 payment to settle a dispute involving a Trump golf course
  • The foundation paid $20,000 for a portrait of Trump to hang in one of his clubs — another self-dealing transaction; it also paid $12,000 for a Tim Tebow-signed helmet
  • Trump falsely claimed during the 2016 campaign to have donated $1 million to veterans groups; the Washington Post's investigation found no donations had been made; after press inquiry, Trump made donations in the days before a press conference to verify them
  • The foundation was dissolved in December 2018 under a court-supervised agreement; in November 2019, a court ordered Trump and his children to pay $2 million in damages; the remaining foundation assets ($1.78 million) were distributed to legitimate charities under court supervision

Overview

The Donald J. Trump Foundation was a charity. Charities exist to benefit others. The Trump Foundation, the New York Attorney General found, was used to benefit Trump: to pay off his legal disputes, to decorate his clubs with his portrait, to make illegal political donations that happened to coincide with prosecutorial decisions favorable to his business interests.

The Bondi Donation

The $25,000 donation to Pam Bondi's reelection campaign arrived while Bondi's office was deciding whether to join a multistate investigation of Trump University. The timing was notable. Bondi's office decided not to join the investigation. The foundation filed an amended return acknowledging the illegal contribution and paid the minimum required penalty.

Bondi later became a prominent Trump defender and spokesperson. She was confirmed as his Attorney General in 2025.

The Veterans Announcement

During the 2016 campaign, Trump held a fundraiser for veterans and announced he had personally donated $1 million. The Washington Post's David Farenthold investigated and found no evidence the donations had been made. After press inquiry, Trump made donations in the days before a scheduled press conference. He then held the press conference attacking the journalists who had asked the question.

The donations existed. They existed because a reporter asked where they were.

The Pattern

The foundation's conduct — illegal political donation, self-dealing transactions, campaign coordination — was not isolated. It was the same pattern as Trump University, Atlantic City, the housing discrimination case: extract, deny, settle without admitting, move on. The difference was that charities are supposed to be different.

Update log

  1. Updated with $2 million damages order.

Sequence of events

  1. Foundation donates $25,000 to Pam Bondi campaign

    The Trump Foundation donates $25,000 to the political campaign of Florida AG Pam Bondi — an illegal contribution from a charitable organization. The donation occurs while Bondi's office is reviewing whether to join a multistate investigation of Trump University. Florida does not join the investigation.

  2. Washington Post reveals foundation self-dealing

    The Washington Post reports that Trump used $258,000 in foundation funds to settle legal disputes involving his for-profit businesses. This is illegal under New York law governing charitable organizations.

  3. IRS complaint filed over illegal political contribution

    The Trump Foundation files an amended IRS return acknowledging the illegal $25,000 political contribution to Bondi and paying a $2,500 tax penalty — 10% of the amount, as required.

  4. NY AG files civil lawsuit

    New York AG Barbara Underwood files a civil lawsuit against the Trump Foundation and Donald Trump, Ivanka Trump, Eric Trump, and Donald Trump Jr., seeking $2.8 million in restitution and dissolving the foundation.

  5. Foundation dissolved

    The Trump Foundation agrees to dissolve under court supervision. The remaining $1.78 million in assets is distributed to legitimate charities under oversight by the AG's office.

  6. Court orders $2 million in damages

    A New York court orders Trump to pay $2 million in damages to eight nonprofit organizations, finding he had misused charitable assets. His children receive restrictions on nonprofit board service.

Sources

  1. Trump Foundation Ordered to Pay $2 Million for Misuse of Charity — The New York Times
  2. Trump used $258,000 from his charity to settle legal problems — The Washington Post
  3. How Trump raised — and used — money at his charity — The Washington Post
  4. AG James Directs Court-Supervised Dissolution of Trump Foundation — New York Attorney General

How this record was published

Manually curated This entry was added directly and does not carry an automated audit trail.

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