Johnston: Legality of Private Foundation Involvement in Trump Event

David Cay Johnston (Syracuse) published ” Was Involvement of Private Foundation in Trump Event Illegal?” in the February 1st 1edition of TaxAnalysts:

Did Donald Trump violate the law January 28 by involving his private foundation in his campaign for the Republican presidential nomination?

Maybe — and maybe not, according to three practitioners specializing in the nexus of tax and nonprofit law. But all agreed that Trump’s actions put front and center why Congress needs to take a serious look at the growing connections between the charitable world and partisan politics, with a focus on what will make for sound policy.

Trump clearly used the charitable foundation under his control to further his campaign for the White House. But that may not be illegal.

Other politicians — including the Clintons, the Kennedys, and the Rockefellers — have or had foundations that they control. However, the politicians in those families did not hold campaign rallies to raise money for their charities while running for office.

Still, the existence of those foundations has sometimes led to controversy. The receipt of gifts to the Clinton Foundation, especially from foreign governments when Democratic presidential candidate Hillary Clinton was secretary of state, has drawn sharp rebuke from some Republicans and calls for an investigation.

(Hat tip:  TaxProfBlog)

Nicholas Mirkay