Trump vows to dissolve controversial charitable foundation
December 25, 2016
US President-elect Donald Trump's foundation is currently under investigation for suspect practices. The announcement comes as part of Trump's efforts to eliminate any conflicts of interest before he takes office.
Image: picture-alliance/AP Photo/P.M. Monsivais
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With less than a month to go until his inauguration, Donald Trump said on Saturday that he intends to shut his controversial charitable entity, the Donald J. Trump Foundation. The billionaire businessman said he had directed his attorney "to take the steps needed to close the charity."
"The foundation has done enormous good works over the years in contributing millions of dollars to countless worthy groups, including supporting veterans, law enforcement officers and children," Trump said in a statement.
"I will be devoting so much time and energy to the presidency and solving the many problems facing our country and the world. I don't want to allow good work to be associated with a possible conflict of interest," he added.
Trump said he will pursue philanthropic efforts through other means, but didn't elaborate on exactly how he intended to do so.
Legal investigation
The Donald J. Trump Foundation has been subject to investigation by New York Attorney General Eric Schneiderman since September this year. The inquiry seeks to ensure that the foundation is complying with New York state charity laws.
The office of New York Attorney General Eric Schneiderman said the Donald J. Trump Foundation "cannot legally dissolve" until the ongoing investigation is completeImage: picture-alliance/dpa/D. Anderson
The investigation was prompted by reports of transactions that came to light in recent months. Among them was a story from the "Washington Post" which cited tax records showing that Trump had not donated to his foundation since 2008.
The US daily also reported that the foundation spent $20,000 (19, 134 euros) meant for charity to buy a 1.8-meter-tall painting of Trump. In 2013, the foundation also donated $25,000 to Pam Bondi, the attorney general of Florida, just days after reports emerged that she was considering filing fraud charges against Trump University.
Trump has denied any connection between the money and the attorney general, however, with Bondi later deciding not to pursue an investigation.
No legal dissolution
Amy Spitalnick, press secretary for Schneiderman's office, said on Saturday that the Donald J. Trump Foundation "cannot legally dissolve" until the investigation is complete.
The private charitable organization was founded by Trump in 1987 with money earned from his best-selling book, "The Art of the Deal."
Until around 2005, the foundation was largely financed by Trump himself. For the past decade, however, it has been funded almost exclusively by donations from friends and associates of the president-elect.
According to the foundation's most recent filing with the Internal Revenue Service in 2014, the organization claimed assets of some $1,273,895.
ksb/kl (AP, Reuters)
Donald Trump's empire
Just how rich is the man, and what is his wealth based on? Donald Trump has bragged about his money, but he hasn't disclosed many details. This much (or little) is known ...
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So, how rich is he?
Those looking into Trump's wealth first and foremost encounter one thing - obscurity. There's no clarity about his total wealth whatsoever. And no light was shed on it in the run-up to the presidential election, since Trump - unlike previous cadidates - had not published a tax declaration.
Image: Getty Images/C. Somodevilla
Trump's own statements ...
... do not nearly match the estimates of others. In June 2015, he said he owned over $8 billion (7.7 billion euros). But "Forbes" put his wealth at $4.1 billion. In mid-July 2015, Trump stated he owned over $10 billion, while "Bloomberg" said at the time he possessed 'only' $2.9 billion.
Image: Reuters/J. Bourg
Global corporate network
According to the German business daily "Handelsblatt," Trump owns shares in some 500 companies in at least 25 countries. There's little information about what these firms do, and little about their revenues or profits. CNN claims Trump has 144 firms in 25 nations, while "The Washington Post" says he has 111 firms in at least 18 countries.
Image: picture-alliance/AP Photo/M. Probst
Real estate money
Trump's empire is "The Trump Organization," which he took over from his father. He's been in charge of it since 1971. It features real estate gems around the globe, among them 40 Wall Street in New York, Trump International Hotel & Tower in Vancouver, and Trump International Hotel in Las Vegas (pictured).
Image: Getty Images/J.Raedle
Four buildings in focus
Trump's main wealth is based on four buildings, according to Forbes. The president-elect owns two office buildings in New York, and he owns shares in Trump Tower, Fifth Avenue. He also owns a building in San Francisco. "Forbes" calculates these real estate gems account for about 40 percent of the man's total wealth.
Image: picture-alliance/dpa/W.G. Allgoewer
Hole-in-one
Let's not forget the golf courses he owns - a total of 17 in the US, Ireland, Scotland and the United Arab Emirates. In May of this year, Trump said he logged an annual revenue of $306 million from these golf courses.
Image: picture alliance/dpa/D. Lawson
No casino winning streak
Trump also pumped a lot of money into casinos and leisure centers in Atlantic City and Florida. The Taj Mahal casino in Atlantic City reportedly cost Trump about $1 billion. It went bust in 1991; three insolvencies followed in 2004, 2009 and 2014 respectively. The casino finally went out of operation on October 10, 2016.
Image: Getty Images/W.T.Cain
'You're fired'
Trump also tried his luck in the entertainment media. Many Americans remember him as anchor and producer of the successful series "The Apprentice," televised from 2004 to 2011.The show was broadcast in 17 nations.
Legal battles and failed deals: Most US lenders have turned their backs on Donald Trump. Not so Germany's Deutsche Bank, which is believed to be the man's major loan provider. The "Wall Street Journal" says Deutsche has granted him $2.5 billion in loans since 1998. According to CNN, Trump still owes some $360 million to the Frankfurt-based global bank.
Image: picture-alliance/Markus Ulmer
Giobal conflicts of interest?
These seem almost certain. In the past, entrepreneurs elected to become US presidents have handed over their businesses to a blind trust. While not losing ownership rights, they no longer had a say in business operations. Trump, for his part, is planning to hand over his businesses to his adult children. He has said he will disclose the details of this scheme in January.
