Trump Foundation Operating Without Certification That Allows Large Fundraising: Report

The Donald J. Trump Foundation has never obtained the proper certification necessary that allows a charity to solicit money — an apparent violation of New York law, according to the state attorney general's office.

Charities that solicit more than $25,000 a year from the public must obtain special certification to do so under New York law. However, Trump's charity has never obtained that certification, a Washington Post report published on Thursday evening found. In addition, organizations as large as the Trump Foundation are required to undergo a rigorous audit annually that asks whether the charity spent money for the personal benefit of its officers.

That's become a question for the Trump foundation when, earlier this month, a Washington Post investigation found that Trump used more than a quarter-million dollars of the Trump Foundation's funds to settle lawsuits against the Republican presidential nominee's for-profit businesses.

In all, Trump spent $258,000 from his charity, which may be a violation of laws against "self-dealing" — regulations that keep nonprofit leaders from using organization money to benefit themselves or their businesses.

Another Washington Post investigation indicated misdealing between Trump and his foundation. New York Attorney General Eric Schneiderman said that his office was looking into the Trump Foundation.

"We've inquired into it," Schneiderman told CNN. "We've had correspondence with them. I didn't make a big deal out of it or hold a press conference. But we have been looking into the Trump Foundation to make sure it's complying with the laws governing charities in New York."

He added: "My interest in this issue really is in my capacity as regulator of non-profits in New York state, and we have been concerned that the Trump Foundation may have engaged in some impropriety from that point of view."

On Thursday, it became clearer that Schneiderman had expanded his investigation.

For its part, the Trump campaign called Schneiderman "a partisan hack who has turned a blind eye to the Clinton Foundation for years and has endorsed Hillary Clinton."

However, some observers are baffled by the way Trump conducted business at the foundation.

"You wouldn’t expect somebody who’s supposed to be sophisticated, and brags about his business prowess, would run his foundation like this," James J. Fishman, a professor at Pace University’s law school, told The Washington Post.

Earlier this month, the IRS fined the Trump Foundation $2,500 for making a $25,000 political donation to an organization supporting the reelection campaign of Florida Attorney General Pam Bondi in 2013. Bondi's office was reviewing allegations against Trump University over potential fraud and considered opening an investigation. A formal investigation was never opened.

Trump and Bondi have insisted the donation was not tied to any favors.

Photo credit: Gage Skidmore via Flickr Commons