Eric Trump Foundation flouts charity standards

Published 9:39 am Friday, December 23, 2016

A charity operated by one of Donald Trump’s sons flouts philanthropic standards by financially benefiting charities connected to the Trump family and members of the charity’s board, an Associated Press investigation shows.

The AP found that Eric Trump has exaggerated the size of his foundation and the donations it receives. At the same time, the charity’s payments for services or donations to other groups repeatedly went to one of Donald Trump’s private golf clubs and to charities linked to the Trumps by corporate, family or philanthropic relationships.

The Eric Trump Foundation has raised $7.3 million mostly for children ill with cancer, according to IRS filings since 2007. The charity has long raised money from donors willing to make large contributions to hobnob with the Trumps. For example, golf at the foundation’s chief 2015 fundraiser cost up to $50,000 per foursome. Donald Trump often attends these events, which include a gala dinner, and mixes with the guests and has his photo taken.

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On Wednesday, the younger Trump said he’ll cease soliciting donations for his nonprofit to avoid accusations that contributions could be perceived as a means to buy access to the Trump White House.

The announcement to stop raising money for the foundation followed cancellation of an online auction for “Coffee with Ivanka,” Eric’s sister. The auction was to be sponsored by the Eric Trump Foundation, whose proceeds generally benefit St. Jude Children’s Research Hospital in Memphis, Tennessee.

Concerns about the mingling of politics, business and charity have escalated since Donald Trump’s election. Eric Trump, 32, serves as an executive vice president of his father’s corporate umbrella, The Trump Organization. He was active in his father’s campaign for president, serving as a campaign surrogate, spokesman and senior aide. Following the election, he acted as an executive committee member of the Donald Trump presidential transition team. The president-elect has tapped Eric and his brother Donald Jr., to run the family business empire during the Trump presidency.

In addition to the hubbub about the auction for face time with Ivanka, Eric and Donald Jr. drew attention with their involvement in an offer of a hunting trip with either of them in exchange for a donation of up to $1 million to a new charity that Eric Trump was on record supporting. That offering also has been scuttled over concerns about pay-for-access.

Under IRS rules, a public charity collects money to serve a public mission. Any money passed along to other charities also needs to serve such a mission, without favor to those connected to the original charity’s founder, board members, or relatives of its board.  Charity boards are supposed to act as independent watchdogs.