Trump Foundation: New York AG Found Persistent Illegal Conduct, Ordered Dissolution
The New York AG's investigation found: Trump used foundation funds to settle legal obligations of his businesses (including a $100,000 payment from the foundation to settle a lawsuit against Mar-a-Lago), purchased items for personal use (including a $10,000 portrait of himself and a $12,000 signed Tim Tebow helmet), directed foundation funds to charities at political events in exchange for applause in possible violation of campaign finance law, and improperly used the foundation to pay a $25,000 contribution to a political organization supporting Florida Attorney General Pam Bondi — who subsequently declined to investigate Trump University fraud claims. Trump did not have meaningful control over the foundation, which was run largely by his children without proper board oversight.
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-pre-presidency-trump-foundation-fraud- Victims
- Donors who contributed to the foundation believing funds would go to legitimate charitable purposes; legitimate charities whose reputations were tarnished by association with the foundation's misuse of charitable law; veterans organizations that Trump claimed to benefit while using political events for personal fundraising credit
- Alleged responsible parties
- Donald Trump, Founder and president of the Donald J. Trump Foundation; directed or authorized use of charitable funds for personal and business purposes; used foundation for political campaign purposes; agreed to dissolve the foundation and pay $2 million in damages under judicial oversight— Donald J. Trump Foundation
Key points
- The New York AG's investigation found Trump used foundation funds to settle legal obligations of his businesses: $100,000 paid from the foundation to settle a lawsuit against Mar-a-Lago country club over a flagpole dispute, and $158,000 paid to settle legal claims against Trump's Florida estate — payments that benefited Trump personally and his businesses, not charitable purposes
- Trump purchased personal items using foundation funds: a $10,000 portrait of himself (later found displayed at one of his golf clubs), a $12,000 signed Tim Tebow football helmet, and other items for personal use, in violation of rules against self-dealing by foundations
- Trump used foundation contributions for political purposes during the 2016 presidential campaign: he appeared at events where foundation donations were announced and he received political credit, in apparent violation of rules against electioneering by charitable organizations; the Iowa caucus fundraiser in January 2016, held instead of a Fox News debate, involved $5.6 million in pledges directed by Trump to veterans organizations in what the AG found may have violated campaign finance rules
- The foundation made a $25,000 contribution in 2013 to a political organization supporting Florida Attorney General Pam Bondi's re-election campaign; Bondi's office had been considering whether to investigate Trump University fraud claims and declined to do so; Trump paid a $2,500 IRS fine for the improper political contribution; critics said the payment and Bondi's subsequent non-investigation raised pay-to-play concerns
- In December 2018, Trump agreed to dissolve the foundation under judicial supervision and to pay $2 million in damages to eight legitimate charities as part of a legal settlement; the AG's office retained supervisory authority to ensure the dissolution was handled properly; Trump was required to reimburse the foundation for the personal and business uses of its funds
- A separate lawsuit against Trump and his three eldest children — Ivanka, Donald Jr., and Eric — was filed by the AG alleging breach of fiduciary duty and misuse of charitable assets; that case was settled in November 2019, with Trump paying $2 million in court-ordered damages and the children completing mandatory training on the legal obligations of nonprofit board members
Overview
The New York Attorney General found the Trump Foundation was used as a personal checkbook: to pay legal settlements for Trump's businesses, to buy portraits of Trump for display at his properties, and to make political contributions that benefited Trump's campaign. A court ordered Trump to pay $2 million in damages and the foundation was dissolved under judicial supervision.
The Self-Dealing
The rules governing charitable foundations exist because donations are tax-exempt on the premise they go to public benefit, not to benefit the foundation's principals. The Trump Foundation violated this in documented, specific ways.
A $100,000 foundation check settled a lawsuit against Mar-a-Lago over a flagpole ordinance — paying a legal obligation of Trump's business. A $10,000 foundation check bought a portrait of Trump that ended up displayed at one of his golf clubs. A $12,000 foundation check bought a signed Tim Tebow football helmet. These were not charitable expenditures.
The Political Use
The most significant violation was using the foundation for campaign activities. During the 2016 Iowa caucus period, Trump held a veterans fundraiser instead of attending a Fox News debate. The event raised pledges. Trump directed where the money went — and received political credit for doing so. The New York AG found this may have violated rules against charitable organizations engaging in campaign activities.
The Bondi Contribution
In 2013, the foundation contributed $25,000 to a political committee supporting Florida Attorney General Pam Bondi's re-election. Political contributions are prohibited for charitable foundations. Trump paid an IRS fine. Bondi's office had been reviewing whether to investigate Trump University fraud claims. It declined to proceed.
The sequence — contribution, continued in office, non-investigation — raised pay-to-play questions that the IRS fine did not resolve.
The Resolution
The foundation was dissolved under judicial supervision. Trump paid $2 million in damages. His three eldest children were required to complete training on nonprofit governance obligations. The court found that Trump had violated his legal duties as the foundation's head.
Update log
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Updated with November 2019 court-ordered $2 million damages finding.
Sequence of events
-
Trump Foundation established
The Donald J. Trump Foundation is established as a charitable organization in New York. It is intended to serve as a vehicle for Trump's philanthropic activities. Over subsequent decades, it receives donations from outside entities and is used in ways the New York AG will later find violate charitable law.
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Foundation donates $25,000 to Bondi re-election PAC
The Trump Foundation makes a $25,000 contribution to a political committee supporting Florida Attorney General Pam Bondi's re-election, in violation of rules against political contributions by charitable foundations. Trump pays a $2,500 IRS fine. Bondi's office subsequently declines to investigate Trump University fraud claims.
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Iowa veterans fundraiser — foundation donations used for political benefit
Trump holds a fundraiser for veterans instead of attending a Fox News debate. The event raises $5.6 million in pledges. The New York AG later finds that Trump personally directed foundation donations at the event and received political credit, raising potential campaign finance violations.
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New York AG files lawsuit against Trump and children — dissolution sought
New York AG Barbara Underwood files a lawsuit against Trump, Ivanka Trump, Donald Trump Jr., and Eric Trump for misuse of charitable assets, self-dealing, and using the foundation for political purposes. The AG seeks dissolution of the foundation and $2.8 million in damages.
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Trump agrees to dissolve foundation under judicial supervision — $2 million in damages
Trump agrees to dissolve the Donald J. Trump Foundation under judicial supervision. He agrees to pay $2 million in damages to eight charities. The AG retains oversight of the dissolution. Trump's children continue to face individual claims in a separate proceeding.
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Trump pays $2 million in court-ordered damages — children complete nonprofit training
A New York judge orders Trump to pay $2 million in damages, finding that he had misused the foundation for personal and political purposes. Trump's three eldest children are required to complete training on the obligations of nonprofit board members.
Sources
- Trump Agrees to Dissolve His Charitable Foundation Under Judicial Supervision — The New York Times
- Trump to dissolve foundation after charity found to be used for personal, political purposes — The Washington Post
- NY AG: Trump foundation used as 'personal checkbook' for Trump — The Associated Press
- Petition: In the Matter of the Donald J. Trump Foundation — New York Attorney General