#NY AG TAKES ACTION AGAINST TRUMP FAMILY CODE#

The Board also allegedly did not review or approve any disbursements the Foundation made to charities to settle legal claims made against Mr. As a trustee, Trump is a “disqualified person” for these purposes.Įven when the Board members allegedly knew of the role the Presidential campaign played in directing Foundation disbursements, they did not meet to discuss the Foundation’s role, nor did they approve any of those disbursements. Self-dealing refers to transactions between a private foundation and a “disqualified person”-people who are actively involved with the foundation, such as substantial contributors, foundation managers, and members of their families.

#NY AG TAKES ACTION AGAINST TRUMP FAMILY CODE#

The Internal Revenue Code imposes excise taxes on private foundations for, among other activities, self-dealing and attempting to influence the outcome of elections. The lack of Board oversight opened the door for Trump to run the Foundation, the complaint alleges, according to his whim, timing Foundation disbursements to coincide with his Presidential campaign and disbursing money to charities to settle his personal legal bills. In fact, reporting by the Washington Post alleges that one Board member, Trump Organization Vice President and CFO Allen Weisselberg, did not even know he had been on the Board for more than a decade. For at least 19 years, the Board reportedly did not meet or set policy or criteria for grant approval, and played no role in actually approving grants the Foundation made. Donald Trump and three of his children-Donald Trump Jr., Ivanka Trump, and Eric Trump-all served on the Foundation’s Board. The NY AG alleges that the Foundation, which does not have any employees, exists in name only and delegated its operations and finances to Trump Organization executives. Trump or the Trump Organization,” the collective name for several hundred business entities that Trump controls. While it must follow New York State nonprofit laws, it is also bound by federal laws, including the Internal Revenue Code (the IRC), which prohibits all 501(c)(3)s from supporting or opposing candidates for public office, and the Federal Election Campaign Act (FECA), which prohibits all corporations (including private foundations) from making contributions (including coordinating activities or communications) with candidates for public office.Īfter an extensive two-year investigation, the NY AG explosively claims the Foundation was little more than “a checkbook for payments to not-for-profits from Mr.

The Trump Foundation is a New York not-for-profit corporation that is tax-exempt under federal law as a 501(c)(3) private foundation. The Trump Foundation case highlights just how important it is for all nonprofits to fully understand what 501(c)(3)s can and cannot do in an election year. While the Trump case is certainly high-profile and exceptionally sensational, the State of New York regularly files lawsuits against foundations accused of similar actions, as Ruth Cambridge of Nonprofit Quarterly recently pointed out. The judge has scheduled a hearing on October 11 for the remaining claims against Trump and the Foundation. An attorney for the Trump family said the Foundation announced it would dissolve back in 2016, but still needs to distribute around $1 million in funds. Trump’s personal and business interests, and violations of basic legal obligations for non-profit foundations.” The case continues to evolve-on June 26 th, a New York state judge instructed Trump’s lawyers and the New York AG to reach a settlement regarding the details of the Foundation’s dissolution by August 15 th, according to Bloomberg News. Trump Foundation has been making headlines recently, following New York Attorney General (AG) Barbara Underwood’s June 14 th announcement that her agency is suing the Foundation-including its officers, directors, and Donald Trump himself-citing “a pattern of persistent illegal conduct over more than a decade, including extensive unlawful political coordination with the Trump presidential campaign, repeated and willful self-dealing transactions to benefit Mr.

Ny ag takes action against trump family