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Trump Pays $2 Million to 8 Charities for Misuse of Foundation
Under a settlement, the president admitted he had used his charity to bolster his campaign and settle business debts.
President Trump speaking to reporters on Dec. 7.Credit...Samuel Corum for The New York Times
By Luis Ferré-Sadurní
The foundation’s giving patterns and management came under scrutiny during Mr. Trump’s run for office, and last year the New York attorney general filed a lawsuit accusing the president and his family of using the foundation as an extension of their businesses and the campaign.
The payments were part of a settlement announced last month that capped a drawn-out legal battle. In the end, the president admitted in court documents that he had used the foundation to settle legal obligations of his businesses and even to purchase a portrait of himself.
“Charities are not a means to an end, which is why these damages speak to the president’s abuse of power and represent a victory for not-for-profits that follow the law,” the attorney general, Letitia James, said in a statement. “Funds have finally gone where they deserve — to eight credible charities.”
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Last month, a state judge ordered the president to give $2 million to the eight charities, or $250,000 per charity. Under the settlement, Mr. Trump’s lawyers also agreed to liquidate the Trump Foundation’s remaining assets of more than $1.7 million and disburse them to those same nonprofits, which have no connection to the president or his family.
The president wired payments directly to the organizations a few weeks ago, but the payments were not made public until this week, an official in the attorney’s office said.
The nonprofit groups that received payments were the Army Emergency Relief, the Children’s Aid Society, Citymeals on Wheels, Give an Hour, Martha’s Table, the United Negro College Fund, the United Way of the National Capital Area, and the United States Holocaust Memorial Museum. Each received a total of $476,140.01.
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“Our case was amicably resolved weeks ago,” the statement said. “The judge commended both parties for the resolution. The legacy of the Trump Foundation — which gave away many millions to those most in need at virtually no cost — is secure.”
In a mid-November filing, the attorney general’s office requested that the judge, Justice Saliann Scarpulla of State Supreme Court in Manhattan, order Mr. Trump not to write off the payments as charitable contributions in his tax filings, but the judge did not do so.
As part of the settlement, Mr. Trump, who at first dismissed the suit as a political attack, made 19 detailed admissions, acknowledging, for example, that the foundation had purchased the $10,000 portrait of himself that was ultimately displayed at one of his Florida hotels.
He admitted to using the foundation’s money to settle obligations of some of his for-profit companies, including a golf club in Westchester County, N.Y., and Mar-a-Lago, his private club in Florida which he frequently visits.
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And he admitted that the foundation had given his presidential campaign control over about $2.8 million that the foundation had raised at a veterans fund-raiser in Iowa in January 2016. Mr. Trump acknowledged the fund-raiser was in fact a campaign event.
The Trump Foundation, which Mr. Trump founded in 1987, disbanded last December after an investigation by Barbara Underwood, then-acting attorney general of New York. Ms. Underwood’s office found “unlawful coordination with the Trump presidential campaign, repeated and willful self-dealing, and much more.”
It is illegal for charitable foundations to advance the self-interests of their executives.
The investigation had been started by the former attorney general, Eric T. Schneiderman, and was based on information first reported by The Washington Post during the presidential campaign. Ms. James took over the case when she was sworn into office in 2019.
As part of the settlement, Mr. Trump’s three children who were officers of the foundation — Eric Trump, Donald Trump Jr. and Ivanka Trump — were ordered to undergo mandatory training to ensure they do not engage in similar misconduct in the future.
On Tuesday, the attorney general’s office confirmed the children had undergone the training.
SUBSCRIBE NOWLOG IN
Trump Pays $2 Million to 8 Charities for Misuse of Foundation
Under a settlement, the president admitted he had used his charity to bolster his campaign and settle business debts.
President Trump speaking to reporters on Dec. 7.Credit...Samuel Corum for The New York Times
By Luis Ferré-Sadurní
- Dec. 10, 2019
The foundation’s giving patterns and management came under scrutiny during Mr. Trump’s run for office, and last year the New York attorney general filed a lawsuit accusing the president and his family of using the foundation as an extension of their businesses and the campaign.
The payments were part of a settlement announced last month that capped a drawn-out legal battle. In the end, the president admitted in court documents that he had used the foundation to settle legal obligations of his businesses and even to purchase a portrait of himself.
“Charities are not a means to an end, which is why these damages speak to the president’s abuse of power and represent a victory for not-for-profits that follow the law,” the attorney general, Letitia James, said in a statement. “Funds have finally gone where they deserve — to eight credible charities.”
ADVERTISEMENT
Continue reading the main story
Last month, a state judge ordered the president to give $2 million to the eight charities, or $250,000 per charity. Under the settlement, Mr. Trump’s lawyers also agreed to liquidate the Trump Foundation’s remaining assets of more than $1.7 million and disburse them to those same nonprofits, which have no connection to the president or his family.
The president wired payments directly to the organizations a few weeks ago, but the payments were not made public until this week, an official in the attorney’s office said.
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The nonprofit groups that received payments were the Army Emergency Relief, the Children’s Aid Society, Citymeals on Wheels, Give an Hour, Martha’s Table, the United Negro College Fund, the United Way of the National Capital Area, and the United States Holocaust Memorial Museum. Each received a total of $476,140.01.
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“Our case was amicably resolved weeks ago,” the statement said. “The judge commended both parties for the resolution. The legacy of the Trump Foundation — which gave away many millions to those most in need at virtually no cost — is secure.”
In a mid-November filing, the attorney general’s office requested that the judge, Justice Saliann Scarpulla of State Supreme Court in Manhattan, order Mr. Trump not to write off the payments as charitable contributions in his tax filings, but the judge did not do so.
As part of the settlement, Mr. Trump, who at first dismissed the suit as a political attack, made 19 detailed admissions, acknowledging, for example, that the foundation had purchased the $10,000 portrait of himself that was ultimately displayed at one of his Florida hotels.
He admitted to using the foundation’s money to settle obligations of some of his for-profit companies, including a golf club in Westchester County, N.Y., and Mar-a-Lago, his private club in Florida which he frequently visits.
ADVERTISEMENT
Continue reading the main story
And he admitted that the foundation had given his presidential campaign control over about $2.8 million that the foundation had raised at a veterans fund-raiser in Iowa in January 2016. Mr. Trump acknowledged the fund-raiser was in fact a campaign event.
The Trump Foundation, which Mr. Trump founded in 1987, disbanded last December after an investigation by Barbara Underwood, then-acting attorney general of New York. Ms. Underwood’s office found “unlawful coordination with the Trump presidential campaign, repeated and willful self-dealing, and much more.”
It is illegal for charitable foundations to advance the self-interests of their executives.
The investigation had been started by the former attorney general, Eric T. Schneiderman, and was based on information first reported by The Washington Post during the presidential campaign. Ms. James took over the case when she was sworn into office in 2019.
As part of the settlement, Mr. Trump’s three children who were officers of the foundation — Eric Trump, Donald Trump Jr. and Ivanka Trump — were ordered to undergo mandatory training to ensure they do not engage in similar misconduct in the future.
On Tuesday, the attorney general’s office confirmed the children had undergone the training.
