Trump used $258,000 from his charity to settle legal problems

[Libertine]

Trump used $258,000 from his charity to settle legal problems

Republican presidential nominee Donald Trump may have violated the IRS's rules regarding charitable funds.

Trump used his charity's money to settle his for-profit business's lawsuits

Donald Trump spent more than a quarter-million dollars from his charitable foundation to settle lawsuits that involved the billionaire’s for-profit businesses, according to interviews and a review of legal documents.

Those cases, which together used $258,000 from Trump’s charity, were among four newly documented expenditures in which Trump may have violated laws against “self-dealing” — which prohibit nonprofit leaders from using charity money to benefit themselves or their businesses.

In one case, from 2007, Trump’s Mar-a-Lago Club faced $120,000 in unpaid fines from the town of Palm Beach, Fla., resulting from a dispute over the height of a flagpole.

In a settlement, Palm Beach agreed to waive those fines — if Trump’s club made a $100,000 donation to a specific charity for veterans. Instead, Trump sent a check from the Donald J. Trump Foundation, a charity funded almost entirely by other people’s money, according to tax records.

In another case, court papers say one of Trump’s golf courses in New York agreed to settle a lawsuit by making a donation to the plaintiff’s chosen charity. A $158,000 donation was made by the Trump Foundation, according to tax records.

These cases provide new evidence that Trump ran his charity in a way that may have violated U.S. tax law and gone against the moral conventions of philanthropy.

“I represent 700 nonprofits a year, and I’ve never encountered anything so brazen,” said Jeffrey Tenenbaum, who advises charities at the Venable law firm in Washington. After The Washington Post described the details of these Trump Foundation gifts, Tenenbaum described them as “really shocking.”

“If he’s using other people’s money — run through his foundation — to satisfy his personal obligations, then that’s about as blatant an example of self-dealing as I’ve seen,” Tenenbaum said.

The Washington Post sent the Trump campaign a detailed list of questions about the four cases but received no response.

The Washington Post is investigating how much Republican presidential candidate Donald Trump has given to charity over the past seven years. Here's what we found.

Trump founded his charity in 1987 and for years was its only donor. But in 2006, Trump gave away almost all the money he had donated to the foundation, leaving it with just $4,238 at year’s end, according to tax records.

Then, he transformed the Trump Foundation into something rarely seen in the world of philanthropy: a name-branded foundation whose namesake provides none of its money. Trump gave relatively small donations in 2007 and 2008, and afterward, nothing. The foundation’s tax records show no donations from Trump since 2009.

The Washinton Post has previously detailed other cases in which Trump used the charity’s money in a way that appeared to violate the law.

The four new cases of possible self-dealing were discovered in the Trump Foundation’s tax filings. While Trump has refused to release his personal tax returns, the foundation’s filings are required to be public.

In many instances, it appears that Trump may have violated rules against self-dealing.

Several tax experts said that the two cases appeared to be clear examples of self-dealing, as defined by the tax code.

The Trump Foundation had made a donation, it seemed, so that a Trump business did not have to.

Rosemary E. Fei, a lawyer in San Francisco who advises nonprofit groups, said both cases clearly fit the definition of self-dealing.

“Yes, Trump pledged as part of the settlement to make a payment to a charity, and yes, the foundation is writing a check to a charity,” Fei said. “But the obligation was Trump’s. And you can’t have a charitable foundation paying off Trump’s personal obligations. That would be classic self-dealing.”


The Washington Post
9-20-16

https://www.washingtonpost.com/polit...dc7_story.html