Trump Foundation: Lawful Or Criminal?

In 2018, the Donald J. Trump Foundation was ordered to shut down after New York's Attorney General alleged that the organisation had been improperly leveraged to further Trump's business and political interests. The Attorney General, Letitia James, claimed that Trump had used the foundation for his own personal benefit, which justified her request to ban him from being involved in any non-profit group for 10 years.

Trump was ordered to pay $2 million in damages to eight separate charities, including the United Negro College Fund and the U.S. Holocaust Memorial Museum. He was also forced to pay back $11,525 in foundation funds that he had spent on sports memorabilia and champagne at a charity gala.

Trump's three eldest children, who were members of the foundation's board, were required to undergo mandatory training on the duties of those who run charities.

Trump used the foundation for his personal, business and political interests

In 2018, New York Attorney General Barbara Underwood filed a lawsuit against then-President Donald Trump, his three adult children, and the Trump Foundation, alleging "a pattern of persistent illegal conduct" over more than a decade. The lawsuit accused Trump of using the foundation for his "personal, business, and political interests" in violation of federal and state laws governing charities.

The lawsuit claimed that Trump used the foundation's funds and name to pay off his legal debts, promote his hotels and other businesses, and purchase personal items. This included spending $10,000 on a portrait of himself, which was displayed in one of his hotels, and using $100,000 of the foundation's money to settle legal claims over an 80-foot flagpole he had built at his Mar-a-Lago resort in Florida.

In 2024, a judge ordered Trump to pay $2 million to an array of charities as a fine for misusing his charitable foundation for political and business interests. Trump was also forced to pay back $11,525 in foundation funds that he had spent on sports memorabilia and champagne at a charity gala. As part of the settlement, Trump agreed to restrictions on his involvement in other charitable organizations, and his three eldest children, who were members of the foundation's board, underwent mandatory training on the duties of those who run charities. The Trump Foundation was dissolved, and its remaining funds were given to other non-profits.

Trump used the foundation to pay off legal debts

In 2019, former US President Donald Trump was ordered to pay $2 million in damages for misusing funds from his charitable foundation, the Trump Foundation. The fine was issued by New York State Judge Saliann Scarpulla, who also ordered the dissolution of the Trump Foundation. The $2 million was to be paid to eight separate charities, including the Army Emergency Relief, the Children's Aid Society, and the U.S. Holocaust Memorial Museum.

Trump was accused of using the foundation to pay off legal debts, as well as to boost his 2016 presidential campaign and to buy himself art. In a statement, New York Attorney General Letitia James said that the damages "speak to the president's abuse of power and represent a victory for not-for-profits that follow the law."

Trump's lawyers claimed that the lawsuit was politically motivated, but the evidence against him was extensive. Trump himself admitted to a series of abuses outlined in the lawsuit, including allowing his campaign staff to coordinate with the foundation to hold a fundraiser for veterans during the 2016 Iowa caucuses. This event was designed to further Mr. Trump's political campaign, according to Scarpulla.

In addition to the $2 million fine, Trump was forced to reimburse his foundation $11,525 for sports memorabilia and champagne purchased at a charity gala. He also agreed to restrictions on his involvement in other charitable organizations and to ongoing reporting to the Office of the Attorney General if he creates a new charity.

The settlement was the result of a lawsuit filed against Trump in 2018 by the New York Attorney General's office, which alleged "a pattern of persistent illegal conduct" by the Trump Foundation. The foundation was shut down in December 2018, and its remaining $1.8 million in funds were disbursed among charities.

The case against Trump is just one of many legal battles he has faced over the years, with the former president and his businesses involved in over 4,000 legal cases in US federal and state courts since 1973.

Trump used the foundation to promote his hotels and businesses

In 2018, New York Attorney General Barbara Underwood filed a lawsuit against then-President Donald Trump, his three adult children, and the foundation, claiming a "pattern of persistent illegal conduct" for over a decade. The lawsuit accused Trump of using the foundation to pay off his own legal debts, promote Trump hotels and other businesses, and purchase personal items.

One such instance was the purchase of a $10,000 portrait of Trump, which was displayed in one of his hotels. In addition, Trump admitted to arranging for the charity to pay $10,000 for a 6-foot portrait of himself. He also agreed to pay back $11,525 in foundation funds that he spent on sports memorabilia and champagne at a charity gala.

In another instance, Trump directed that $100,000 in foundation money be used to settle legal claims over an 80-foot flagpole he had built at his Mar-a-Lago resort in Palm Beach, Florida, instead of paying the expense out of his pocket. The foundation also paid $158,000 to resolve a lawsuit over a prize for a hole-in-one contest at a Trump-owned golf course, and $5,000 for ads promoting Trump's hotels in the programs for charitable events. Trump admitted that these transactions were improper.

In 2024, a judge ordered Trump to pay $2 million to an array of charities as a fine for misusing his charitable foundation to further his political and business interests. The judge imposed the penalty after Trump admitted to a series of abuses outlined in the lawsuit brought against him by the New York Attorney General's office. Trump's foundation was dissolved, and its remaining funds were given to other non-profits.

Trump used the foundation to purchase personal items

The New York Attorney General's office investigated the Donald J. Trump Foundation, a New York-based tax-exempt private foundation formed in 1988 by Donald Trump, for various legal violations. The foundation was created to receive royalties from Trump's 1987 book, *Trump: The Art of the Deal*, as well as donations from others, for the stated purpose of distributing the funds to charitable causes.

In 2018, the New York Attorney General, Barbara Underwood, filed a civil suit against the foundation, Trump himself, and his adult children—Ivanka, Eric, and Donald Jr.—alleging that Trump had used the foundation for his personal, business, and political interests in violation of federal and state laws governing charities.

One of the accusations against Trump was that he had used the foundation's money to purchase artists' portraits of himself. On three occasions, Trump used the foundation's money to purchase portraits of himself, including:

• A six-foot-tall portrait by artist Michael Israel, purchased for $20,000 at a benefit for a Florida charity, the Children's Place at Homespace, held at his Mar-a-Lago country club in Florida.
• A nine-foot-tall portrait by artist William Quigley, purchased for $60,000 by a straw purchaser, billionaire Stewart Rahr, at Trump's request.
• A four-foot-tall portrait by Argentine artist Havi Schanz, purchased for $20,000 at a charity for the Unicorn Children's Foundation, held at his Mar-a-Lago resort.

In addition to these instances, Trump also used the foundation's money to purchase a luxury trip to Paris, including a meeting with actress Salma Hayek, at a charity auction for the Gucci Foundation. He also bid on and purchased an autographed NFL football helmet and jersey at a charity auction with foundation funds.

As a result of the lawsuit, Trump was ordered to pay $2 million in damages to eight different charities for illegally misusing charitable funds for his own benefit. He was also required to reimburse his namesake foundation for sports paraphernalia and champagne purchased at a charity gala. The Trump Foundation was also ordered to shutter its doors and dissolve under court supervision.

Trump used the foundation to pay for a portrait of himself

In 2019, former Trump lawyer Michael Cohen testified that Trump had used a straw purchaser to buy a portrait of himself at a high society art auction. Cohen claimed that Trump directed him to find someone to purchase the portrait by William Quigley, with the intention of ensuring that it would sell for the highest price. The fake bidder was then reimbursed with $60,000 from the Trump Foundation, a charitable organisation.

This was not the first time that Trump had used his foundation's funds to purchase a portrait of himself. In 2014, at a charity event for the Unicorn Children's Foundation, held at his Mar-a-Lago resort, Trump purchased a four-foot-tall portrait of himself from the 1990s by the Argentine artist Havi Schanz. He paid $20,000 for the painting, using money from the Trump Foundation.

In 2007, Trump spent $20,000 of the Trump Foundation's money on a six-foot-tall portrait of himself by artist Michael Israel. The painting was purchased at a benefit for a Florida charity, the Children's Place at Homespace, held at his Mar-a-Lago country club in Florida. Trump's wife, Melania, made the highest bid. The charity received half the proceeds, or $10,000, with the painting's fair market value being established as at least that amount.

In addition to the three portraits of himself, Trump also purchased an autographed football helmet and jersey of NFL player Tim Tebow with $12,000 from the Trump Foundation's funds.

Frequently asked questions