The Donald J. Trump Foundation

Last updated: November 21, 2025

Status: Foundation dissolved under court supervision; in 2019 a New York court ordered Donald J. Trump to pay 2 million dollars in restitution for misuse of charitable funds, distributed to eight charities. Additional restrictions and training requirements were imposed on certain directors.

Summary

The Donald J. Trump Foundation operated as a private charitable foundation from 1988 until its court-supervised dissolution following a civil enforcement action by the New York Attorney General (NYAG). Investigators alleged that the foundation was repeatedly used for noncharitable purposes, including payments that benefited Trump’s businesses, involvement in the 2016 presidential campaign, and settlement of legal disputes that would ordinarily be borne by Trump or his companies.

On June 14, 2018, the NYAG filed a petition in New York Supreme Court (New York County) seeking dissolution, restitution, and governance remedies. The petition described a pattern of “persistent illegality” in the administration of charitable assets and highlighted lapses in board oversight, including the absence of regular board meetings.

In 2018 the court moved toward a structured wind-down of the foundation under judicial supervision. In November 2019, Justice Saliann Scarpulla ordered Trump to pay 2 million dollars in damages for misusing charitable funds, with the money directed to eight court-approved charities. The order also imposed compliance conditions affecting Trump’s children’s future service on New York charities, including mandatory governance training. By December 10, 2019, the NYAG confirmed that Trump had paid the 2 million dollars and that both the damages and remaining foundation funds had been distributed to the designated charities.

The case ended the foundation’s operations and set out conditions intended to prevent similar issues if Trump family members serve as fiduciaries of other charities. It remained a civil enforcement matter rather than a criminal prosecution.

Background

The Trump Foundation was created in 1988 and, over time, received both royalties from Trump’s book “Trump: The Art of the Deal” and donations from outside contributors. Public reporting and later investigative findings indicated that Trump’s personal contributions declined and that the foundation increasingly relied on outside donations.

During the 2016 presidential campaign, journalists and watchdogs began scrutinising the foundation’s grants and expenditures. Reporting detailed examples where charitable funds intersected with business or political interests, including:

Payments related to legal disputes involving Trump properties, where foundation money was used to satisfy obligations that otherwise would have fallen on Trump or his companies.
Purchases of items such as portraits of Trump that were later displayed at Trump-branded properties instead of being used for charitable programs.
A high-profile fundraiser for veterans held during the 2016 campaign, where funds raised in a campaign context were routed through the foundation, raising questions about compliance with charity and campaign-finance rules.

The NYAG’s petition characterised the foundation as functioning at times as a “checkbook” for Trump and his businesses rather than as an independently governed charity. It cited the lack of board meetings after the late 1990s and alleged that Trump and his family board members failed to exercise basic fiduciary oversight over grants and expenditures.

Legal action and outcome

Filing of the NYAG petition

On June 14, 2018, the NYAG filed a civil petition in New York Supreme Court seeking dissolution of the Donald J. Trump Foundation, restitution, and penalties under state charity law. The petition alleged violations including self-dealing, improper coordination with Trump’s presidential campaign, and failure to follow basic nonprofit governance rules.

The Attorney General asked the court to:

Dissolve the foundation under judicial supervision
Recover funds allegedly misused for noncharitable purposes
Impose restrictions and training requirements on Trump and his children before they could serve as officers or directors of New York charities in the future

Court-supervised dissolution

By the end of 2018, the parties agreed on a stipulation to dissolve the foundation, with the court keeping supervision over how remaining assets would be distributed. The dissolution agreement ensured that the foundation’s funds would go only to charities approved by the Attorney General and the court, rather than being returned to Trump or his businesses.

Damages, restrictions, and training

In a November 2019 order, Justice Scarpulla found that Trump had breached his fiduciary duties by misusing foundation assets and ordered him to pay 2 million dollars in damages. That money was earmarked for eight specific charities, each receiving an equal share. The order also approved additional conditions relating to Trump’s children, including requirements that they undergo mandatory training on the duties of officers and directors of charitable organisations before serving on the boards of New York charities.

On December 10, 2019, the NYAG announced that Trump had paid the full 2 million dollars and that both the damages and remaining foundation funds were distributed among the eight court-approved charities. With that distribution completed, the financial aspects of the case were effectively concluded, while the broader message emphasised that charitable entities cannot be used as extensions of a candidate’s campaign or personal business.

Timeline

1988: The Donald J. Trump Foundation is established as a private charitable foundation.
2016: Media and watchdog scrutiny intensifies around the foundation’s grants and spending, including questions about self-dealing and its role in the presidential campaign.
June 14, 2018: The New York Attorney General files a civil petition in New York Supreme Court seeking dissolution, restitution, and governance remedies for alleged persistent violations of state charity law.
Late 2018: The parties agree to a court-supervised dissolution path for the foundation, ensuring remaining funds will be distributed to court-approved charities.
November 7–8, 2019: The court orders Trump to pay 2 million dollars in damages for misuse of charitable funds and imposes compliance and training requirements for Trump and certain Trump family members.
December 10, 2019: The NYAG confirms that Trump has paid the 2 million dollars and that both the damages and remaining foundation assets have been distributed to eight charities, completing the financial aspects of the dissolution.

Scope, impact, and neutrality

This case was a civil charity enforcement action, not a criminal prosecution. No criminal charges were brought against Trump or the foundation in this matter. Instead, the focus was on dissolving the foundation, compensating charitable beneficiaries, and imposing governance safeguards to reduce the risk of future misuse of charitable assets.

The enforcement action is often cited for several reasons:

It formally ended the operation of a long-running Trump-affiliated charity under court supervision.
It required Trump to pay court-ordered damages after admitting to misusing foundation funds for business and political purposes in connection with the settlement.
It imposed training and governance conditions on Trump’s children before they can serve on New York nonprofit boards, underscoring the state’s view that board members must exercise real oversight rather than simply lending their names to a charity.

At the same time, neutral summaries of the case note that:

The outcome does not bar all Trump family members from any future charitable activity in New York; rather, it sets specific conditions and training requirements.
The case is distinct from other investigations and prosecutions involving Trump’s business entities or political activities, which are addressed separately in the Fraud Hub.

This page aims to distinguish clearly between allegations, judicial findings, and settlement terms; to rely on official court documents, Attorney General filings, and mainstream reporting; and to describe the legal posture in straightforward, non-partisan language to maximise clarity and ad-serving compliance.

Questions or corrections? Email the editors at admin@felonotus.com.

Sources

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