The Donald J. Trump Foundation has agreed to dissolve under the supervision of the New York Attorney General’s Office. The foundation would distribute its remaining assets within 30 days.
“Today’s stipulation accomplishes a key piece of the relief sought in our lawsuit earlier this year,” Attorney General Barbara Underwood said via a press release announcing the agreement. “Under the terms, the Trump Foundation can only dissolve under judicial supervision – and it can only distribute its remaining charitable assets to reputable organizations approved by my office,” she said.
The stipulation was executed on Dec. 11 and signed by Alan Futerfas, the foundation’s attorney, and Yael Fuchs, co-chief of the Charities Bureau Enforcement Section. It was filed with the court today and awaits the signature of state Supreme Court Justice Saliann Scarpulla, who last month ruled against a motion by the foundation to dismiss the lawsuit.
Within 30 days of the order, both parties will jointly submit a list of nonprofits to receive distributions, in equal amounts, from the remaining assets, according to the court filing.
The foundation reported total net assets of $1.745 million in its Form 990 for 2017, filed last month with the Internal Revenue Service (IRS). Total revenue was reported to be $775,311, including a $502,400 contribution from The Trump Corporation. The board consists of Trump, Allen Weisselberg, and Trump’s sons, Donald Jr. and Eric. Daughter Ivanka resigned from the board in January 2017, according to the tax form.
Trump intended to dissolve the foundation after winning election in 2016 but an ongoing investigation by former Attorney General Eric Schneiderman prevented it. The foundation was ordered to cease fundraising operations in New York state due to a failure to register with the Charities Bureau and provide annual financial reports. There also have been allegations of self-dealing and coordinating with political campaigns and committees during the 2016 Republican presidential primaries.
The Attorney General’s Office, led by Underwood after Schneiderman stepped down, filed suit in June 2018. In addition to shutting down the foundation, the lawsuit still seeks $2.8 million in restitution plus penalties and a 10-year prohibition on Trump or his adult children running charities in New York.
“Our petition detailed a shocking pattern of illegality involving the Trump Foundation – including unlawful coordination with the Trump presidential campaign, repeated and willful self-dealing, and much more,” Underwood said. “This amounted to the Trump Foundation functioning as little more than a checkbook to serve Mr. Trump’s business and political interests.”