Tuesday, September 20, 2016
A charitable slush fund
In the wake of a ferocious attack on the Clinton Foundation, a top rated charity, for imagined and magnified dishonesty, we heard calls for it to be closed down. Now we are learning that The Great Orange Fungus, who also has an alleged charitable foundation, has been using his as a slush fund to pay settlements and judgments against him. We await the calls for it to be shut down as he faces the music in court.
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.Trump needed the money other people donated to make these payments because he, himself, has little cash. He lives in a mad world of money moving from one Trump business to another, paying his way as needed, one step ahead of the bill collectors, except when he decides to stiff his creditors entirely. If any links in his money chain are shut down, his house of cards could come tumbling down.
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 size 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.
The other expenditures involved smaller amounts. In 2013, Trump used $5,000 from the foundation to buy advertisements touting his chain of hotels in programs for three events organized by a D.C. preservation group. And in 2014, Trump spent $10,000 of the foundation’s money for a portrait of himself bought at a charity fundraiser.
Or, rather, another portrait of himself.
Several years earlier, Trump had used $20,000 from the Trump Foundation to buy a different, six foot-tall portrait.
If [More likely when-ed.] the Internal Revenue Service were to find that Trump violated self-dealing rules, the agency could require him to pay penalty taxes or to reimburse the foundation for all the money it spent on his behalf. Trump is also facing scrutiny from the office of the New York attorney general, which is examining whether the foundation broke state charity laws.
More broadly, these cases also 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.
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