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Trump Foundation

Trump Foundation: Allegations and Legal Consequences (2025 Update)

Overview of the Trump Foundation

Founded in 1988 by Donald J. Trump, the Donald J. Trump Foundation was a private charitable organization initially funded with approximately $6 million of Trump’s own money. Its early mission was to support various causes, including proceeds from Trump’s book The Art of the Deal. Over time, the foundation became reliant on outside donors. By the 2010s, questions arose about its operations, including alleged self-dealing, improper political donations, and personal use of charitable funds. These concerns resurfaced as Trump entered his second presidential term on January 20, 2025.

Fraudulent Practices and Misuse of Funds

The Trump Foundation was accused of a range of improper and potentially illegal actions:

  • Personal Use of Charity Funds: Foundation money was allegedly used to settle business-related legal disputes. For example, in 2012, $158,000 was paid to resolve a lawsuit over a flagpole at Mar-a-Lago, and $100,000 was reportedly used to settle another legal matter in Palm Beach.

  • Purchases for Trump’s Personal Benefit: The foundation spent $10,000 in 2014 to purchase a six-foot portrait of Trump at a charity auction. It later hung at his Doral golf resort. In another instance, $20,000 was spent on a football helmet signed by Tim Tebow, raising concerns about personal enrichment from donated funds.

  • Political Contributions: In 2013, the foundation donated $25,000 to the re-election campaign of Florida Attorney General Pam Bondi. This occurred shortly after Bondi’s office declined to investigate Trump University. As political donations from a charity are prohibited under IRS rules, Trump later paid a $2,500 fine and called the incident a paperwork mistake.

  • Self-Dealing and Lack of Governance: Trump admitted to occasionally using foundation money for personal expenses, such as a $12,000 check to cover Boy Scouts dues for his son. The foundation had not held a board meeting since 1999, lacked independent oversight, and operated from within the Trump Organization’s offices.

Between 2007 and 2018, the foundation raised about $19.2 million, primarily from outside contributors. Trump’s last personal donation to the foundation occurred in 2008.

Legal Action and Closure

In September 2016, during Trump’s first presidential campaign, the New York Attorney General’s office launched an investigation into the foundation. On June 14, 2018, a formal lawsuit was filed against Trump and his children—Donald Jr., Ivanka, and Eric—alleging persistent illegal conduct. The case centered on mismanagement, improper self-dealing, and political activity.

On November 7, 2019, a judge ordered the foundation dissolved. Trump was required to pay $2 million in damages, with remaining charitable assets—about $1.78 million—distributed to eight pre-approved nonprofit organizations. His children were also required to complete mandatory training on charitable governance. The foundation was fully closed by 2020.

Trump’s Defense

Trump repeatedly characterized the legal action as politically motivated. In public statements and on social media, he called it a partisan attack and rejected any suggestion of wrongdoing. He claimed the foundation had donated millions to worthy causes, including children’s hospitals and veterans’ groups, and minimized the legal violations as clerical errors. After the settlement in 2019, Trump stated, “All they got was paperwork mistakes,” asserting that he acted in good faith and that the case was exaggerated.

As of 2025, many of Trump’s supporters continue to dismiss the foundation case as a politically driven effort to damage his reputation.

Impact and Legacy

The closure of the Trump Foundation marked one of the more concrete legal consequences tied to Trump’s business and charitable activities. The case cost him $2 million personally and led to the dismantling of a 30-year-old organization that bore his name.

The foundation’s downfall is often cited as emblematic of broader ethical concerns surrounding Trump’s financial dealings. In 2025, public debate continues, with some viewing the case as further evidence of long-standing impropriety, while others see it as minor in the context of Trump’s vast wealth and broader political agenda. The episode remains a key part of the ongoing discourse about accountability, philanthropy, and presidential ethics.