Trump Foundation Dissolved Under Fraud Investigation — Self-Dealing, Political Donations, Portrait Purchases
Last updated
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.
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.
Timeline
Sequence of events
September 17, 2013
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.
September 20, 2016
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.
September 23, 2016
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.
June 14, 2018
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.
December 18, 2018
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.
November 7, 2019
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
- ↑ Trump Foundation Ordered to Pay $2 Million for Misuse of Charity — The New York Times
- ↑ Trump used $258,000 from his charity to settle legal problems — The Washington Post
- ↑ How Trump raised — and used — money at his charity — The Washington Post
- ↑ AG James Directs Court-Supervised Dissolution of Trump Foundation — New York Attorney General
Verification