Here’s How Donald and Eric Trump Moved Money From a Children’s Cancer Charity to Their Business
Eric Trump had earlier vehemently denied allegations that the Eric Trump Foundation funneled funds from a charity golf tournament for St. Jude Children's Research Hospital into the Trump Organization. The foundation's annual golf invitational, held from 2007 to 2015 at the Trump National Golf Club in Westchester County, New York, was highlighted in this controversy. Eric emphasized that the use of the golf course was offered free of charge, and a significant portion of the merchandise, beverages, and entertainment was complimentary, according to Forbes. He said, "We get to use our assets 100% free of charge."
Contrary to Eric's claims, a detailed review of filings from the Eric Trump Foundation and other charitable organizations revealed that the Trump Organization did not provide the golf course for free. Payments were instead made to the Trump Organization for its use, totaling over $1.2 million, with no documented recipients beyond the organization. Additionally, the experts in golf charity events noted that the listed expenses were unreasonably high for a one-day tournament. It was also discovered that the Donald J. Trump Foundation used the Eric Trump Foundation to convert $100,000 in donations, into revenue for the Trump Organization.
Moreover, as reported by CNN, two individuals directly implicated in the matter also provided their testimonies. They said that in 2011 Donald Trump "specifically commanded that the for-profit Trump Organization start billing hundreds of thousands of dollars to the nonprofit Eric Trump Foundation." As per IRS tax filings, the expenses for the golf invitational escalated over the years. From 2007 to 2010, the costs averaged around $50,000 annually. However, in 2011, the expenses surged to approximately $142,000. The 2012 event saw a decrease to $59,000, but costs skyrocketed again in 2013 to $230,000 and continued to climb to $242,000 in 2014, and a staggering $322,000 in 2015, its last year. The reasons behind the escalating costs and the exact portion allocated to the Trump Organization remain unclear.
While the Trump Organization chose not to address detailed inquiries regarding these payments, Ian Gillule, who held the position of membership and marketing director at Trump National Westchester during two separate periods from 2006 to 2015, provided insight into the matter. He said, “I saw that Eric was getting billed. I would always say, ‘I can’t believe that his dad is billing him for a charitable outing.’ But that’s what they wanted.”
Initially, the rising expenses did not directly impact the Eric Trump Foundation's finances. Just before the surge in costs, the Donald J. Trump Foundation contributed $100,000 to the Eric Trump Foundation. Gillule indicated that this donation was specifically intended to cover the augmented budget. Consequently, donors to the Eric Trump Foundation continued to support charitable causes for children, consistent with previous years.
