It is unethical for charitable foundations to serve as tax-free conduits to personally benefit one of its officers. It’s also illegal. The Donald J. Trump Foundation can certainly give a grant to a cause that Trump himself approves of and supports. If, however, that otherwise legitimate cause is an organization that employs his mistress (just hypothesizing here), or one that is chaired by a major contributor to his campaign in what looks like a quid pro-quo deal, or is a cause favored by a Senator who then votes for a bill favored by President Trump, these are all unethical abuses of a charitable foundation’s integrity. They are also common abuses that personal foundations regularly engage in and get away with. Another unethical use of charitable funds is to allow the foundation employ relatives and friends of foundation leaders at high salaries. Again, this is business as usual for many foundations, and is, while unethical, very difficult to stop.
If, however, a foundation that has tax exempt status uses funds that by law must only be used for charitable activities in ways that directly profit an individual connected to the foundation’s management, that’s a version of money laundering and a fraudulent use of charitable grants. There are no nuances there, none of the spin, legalisms and rationalizations used by the Clintons to justify their foundation’s unethical machinations. It’s just plain, unvarnished, unethical, illegal abuse.
That’s what Donald Trump has used his foundation for:
- In 2007, Trump’s Mar-a-Lago Club had to pay $120,000 fines from the town of Palm Beach, Florida. Palm Beach agreed to waive those fines, and avoid litigation challenging their validity, if Trump would make a $100,000 donation to a charity for veterans. Instead of making the contribution with his own money, or the club’s money, Trump had his foundation make the contribution (above), which was primarily composed of tax-deductible gifts to his foundation from others. Trump’s business’s fine was essentially paid by the foundation, and the beneficiary was Trump.
- One of Trump’s golf courses settled a lawsuit by making a $158,000 donation to the plaintiff’s favorite charity. Again, the Trump Foundation, gave the money, according to tax records.
- In 2013, Trump directed the Trump Foundation to pay $5,000 for advertisements touting his chain of hotels in programs for fundraising three events organized by a D.C. preservation group.
Finally, In 2014, Trump’s foundation paid $10,000 at charity fundraiser for a portrait of himself. Continue reading





