The Donald J. Trump Foundation
| The Donald J. Trump Foundation | |
 | |
| Basic facts | |
| Location: | Woodbury, N.Y. |
| Type: | 501(c)(3) private foundation |
| Top official: | Donald Trump |
| Year founded: | 1987 |
The Donald J. Trump Foundation was a private foundation founded by Donald Trump. As a private foundation, the organization was set up to make grants to charitable and nonprofit organizations. In 2016, the foundation announced that it would shut down.Cite error: Invalid <ref> tag; invalid names, e.g. too many
Background
The Donald J. Trump Foundation was founded in 1987 by Donald Trump as a private grantmaking organization. The initial reason for forming the foundation was to give away some of the proceeds from Trump's book The Art of the Deal.[1]
Work
As a private foundation, the Trump Foundation was primarily involved in making grants to other nonprofit organizations. Some private foundations donate to achieve targeted goals, a practice often referred to as strategic philanthropy.
Spending and fundraising
Donation to Pam Bondi PAC
In 2013, the Trump Foundation donated $25,000 to And Justice for All, the political action committee for Florida Attorney General Pam Bondi (R). As a 501(c)(3), the foundation is not legally permitted to be involved in electoral politics. The Washington Post reported that the donation came around the time that Bondi was deciding whether to investigate fraud allegations against Trump University, real estate seminars affiliated with Trump's companies.[2] Trump later paid a $2,500 fee to the IRS for what he and his company called an honest mistake.[3][4]
Fundraising
The Washington Post reported on September 26, 2016, that the Trump Foundation received $2.3 million “from companies that owed money to Trump or one of his businesses but were instructed to pay Trump’s tax-exempt foundation instead.” $400,000 came from Comedy Central for Trump’s appearance on the network for a roast. The other $1.9 million came from a man named Richard Elbers, who, according to The Post, “sells sought-after tickets and one-of-a-kind experiences to wealthy clients.” Elbers bought goods and services from Trump or his business. These two payments accounted for half of the money given to the Trump Foundation between 2008 and 2016. When asked if Trump had paid income taxes on these payments, a senior aide said, “To my knowledge, Mr. Trump has followed all applicable rules and regulations. The rest is pure speculation and worthless conjecture on your part.”[5]
New York Attorney General investigation
On September 30, 2016, the New York Attorney General’s Office ordered the Trump Foundation to cease all fundraising activity in the state of New York. In a letter, the Attorney General's office stated that the foundation had violated a state law, “which requires charitable organizations that solicit contributions in New York State to register with the Charities Bureau and to provide annual financial reports and annual audited financial statements.” The letter said that The Trump Foundation had not registered with the Charities Bureau, “and was thus not permitted to engage” in fundraising activities in the state of New York. The Washington Post had reported previously that Trump’s foundation was not certified to solicit money from the public in New York.[6]
Trump campaign spokeswoman Hope Hicks responded to the letter in a statement, “While we remain very concerned about the political motives behind AG Schneiderman's investigation, the Trump Foundation nevertheless intends to cooperate fully with the investigation.”[7]
Announcement of shutdown
In December 2016, Trump announced that he intended to shut the foundation down. His presidential transition team said the move was an effort to eliminate a potential conflict of interest. The intended shut down was held up by the ongoing investigation into the foundation by New York Attorney General Eric Schneiderman.Cite error: Invalid <ref> tag; invalid names, e.g. too many
Leadership
According to the Trump Foundation's 2014 tax returns filed with the IRS, the following individuals were board members for the organization:[8]
- Donald Trump, President
- Alan Weisselberg, Treasurer
- Donald Trump Jr.
- Eric Trump
- Ivanka Trump
Finances
The following is a breakdown of the Trump Foundation's assets and expenses for the 2012 to 2014 fiscal years:
| Annual assets and expenses for the Trump Foundation, 2012–2014 | ||
|---|---|---|
| Tax Year | Total Assets | Total Expenses |
| 2014[8] | $1,273,895 | $596,700 |
| 2013[9] | $1,369,746 | $918,380 |
| 2012[10] | $1,718,511 | $1,717,394 |
Tax status
The Donald J. Trump Foundation was a 501(c)(3) tax-exempt nonprofit organization. Its 501(c) designation refers to a section of the U.S. federal income tax code concerning charitable, religious, and educational organizations.[11] Section 501(c) of the U.S. tax code has 29 sections that list specific conditions particular organizations must meet in order to be considered tax-exempt under the section. Organizations that have been granted 501(c)(3) status by the Internal Revenue Service are exempt from federal income tax.[12] This exemption requires that any political activity by the charitable organization be nonpartisan in nature.[13]
See also
- Donald Trump presidential campaign, 2024
- Donald Trump presidential campaign, 2020
- Donald Trump presidential campaign, 2016
- Donald Trump
Footnotes
- ↑ The Washington Post, "How Donald Trump retooled his charity to spend other people’s money," September 10, 2016
- ↑ The Washington Post, "Trump camp says $25,000 charity contribution to Florida AG was a mistake," March 22, 2016
- ↑ The Washington Post, "Trump pays IRS a penalty for his foundation violating rules with gift to aid Florida attorney general," September 1, 2016
- ↑ The Washington Post, "Trump used $258,000 from his charity to settle legal problems," September 20, 2016
- ↑ The Washington Post, "Trump directed $2.3 million owed to him to his tax-exempt foundation instead," September 26, 2016
- ↑ The Washington Post, "Trump Foundation lacks the certification required for charities that solicit money," September 29, 2016
- ↑ NBC, "Trump Foundation Ordered by New York AG to Stop Fundraising," October 3, 2016
- ↑ 8.0 8.1 Guidestar, "Donald J. Trump Foundation IRS Form 990 (2014)," accessed September 24, 2016
- ↑ Guidestar, "Donald J. Trump Foundation IRS Form 990 (2013)," accessed September 24, 2016
- ↑ Guidestar, "Donald J. Trump Foundation IRS Form 990 (2012)," accessed September 24, 2016
- ↑ Internal Revenue Service, "Exempt Purposes - Internal Revenue Code Section 501(c)(3)," accessed January 13, 2014
- ↑ Internal Revenue Service, "Life Cycle of a Public Charity/Private Foundation," accessed July 10, 2015
- ↑ Internal Revenue Service, "Exemption Requirements - 501(c)(3) Organizations," accessed January 13, 2014
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