As has
also been widely reported, the Trump Foundation made contributions to numerous charities favored by his personal or business associates including, ironically, the Clinton Foundation in 2009 and 2010. The Trump Foundation also has received all of its financial support since 2008
from people other than Mr. Trump and his family, and who have personal and business ties with him, including NBCUniversal.
But such use of charitable foundations is not illegal under the federal tax laws, even if it may appear unseemly. A foundation only crosses into illegality if a substantial return benefit is received by a foundation insider or a business in which they or their family has a substantial ownership stake.
This is where the Trump Foundation distinguishes itself from the Clinton Foundation.
As detailed
in a series of articles by David Fahrenthold of the Washington Post, the Trump Foundation allegedly purchased a Tim Tebow helmet and paintings of Mr. Trump that may have been kept by Trump personally, bought an ad for a Trump business, made a $25,000 contribution to a political organization affiliated with Florida Attorney General Pam Bondi that Trump had promised to make at a time her office was considering possible action against Trump University, and paid over a quarter million dollars to charities in order to settle lawsuits against Trump businesses.
None of the allegations against the Clinton Foundation, much less the actually demonstrated facts, show this type of personal benefit to Ms. Clinton, her family or any business in which she or they had an interest.
. . . .
The bottom line is that close ties between foundations, their leaders, the donors that support them and the causes they support are common. Members of the public can of course still be critical of such ties, but the law allows them.
What is not allowed is using assets dedicated to charitable endeavors to pay personal debts or support the personal business interests of the foundation leaders.
While both Ms. Clinton and Mr. Trump used their foundations to enhance their extensive networks of relationships, it seems that only Mr. Trump treated his foundation as just another pot of money he could draw upon whenever there was any type of "charitable" connection and even when the primary beneficiary of the foundation's spending was himself or his businesses.
This is where the Trump Foundation appears to have crossed into illegality, as the Post indicates, while the Clinton Foundation did not.