Trump Uses Charity Foundation for Iowa Campaign Event, Violating Tax Law

Donald Trump staged a campaign fundraiser in Des Moines, Iowa disguised as a charitable event, using the Trump Foundation in direct violation of federal tax law prohibiting 501(c)(3) charitable organizations from participating in political campaigns. The January 28, 2016 event occurred just days before the Iowa caucuses after Trump boycotted a Republican primary debate. Trump raised approximately $5.6 million in pledged donations, presented oversized novelty checks to veterans organizations on camera for political benefit, and allowed his campaign - led by manager Corey Lewandowski - to control the event and direct foundation activities for campaign purposes.

Background

In late January 2016, Trump announced he would skip a Fox News Republican primary debate and instead hold a fundraiser for veterans as a campaign stunt. The event was promoted as a charitable effort, but was planned and executed entirely by Trump’s campaign staff as a political event designed to generate positive media coverage and demonstrate Trump’s supposed generosity while avoiding difficult debate questions. The Trump Foundation was used as the vehicle for the fundraising, even though federal law strictly prohibits 501(c)(3) charitable foundations from participating in political campaigns or coordinating with candidates.

New York Attorney General’s investigation later revealed extensive coordination between the Trump campaign and Trump Foundation in planning and executing the Iowa event. Campaign manager Corey Lewandowski directed Trump Foundation staff, used campaign resources to organize the event, and controlled which organizations would receive funds and when - all based on political considerations rather than charitable purpose. Trump personally signed oversized checks on stage in front of media cameras, turning charitable giving into a campaign photo opportunity. The Foundation even failed to actually distribute some of the promised funds until media scrutiny months later forced Trump to follow through on commitments made for political purposes.

Significance

The Iowa veterans event represented the most egregious example of Trump illegally using his charitable foundation for direct campaign benefit. The New York Attorney General’s lawsuit characterized it as proof that “the Foundation was little more than an empty shell, with no employees and no oversight by an independent board.” The AG’s complaint detailed how Trump campaign staff “dictated the timing and amounts of grants to further Mr. Trump’s political campaign,” with Lewandowski explicitly directing foundation activities.

This illegal coordination became a centerpiece of the legal case that led to the Foundation’s dissolution. In 2019, Justice Saliann Scarpulla found Trump had breached his fiduciary duties and ordered him to pay $2 million in damages, noting that the Iowa veterans fundraiser violated the prohibition on candidate coordination. The court mandated that Trump complete mandatory training on charitable organization rules and barred him from serving on the board of any New York charity for one year without prior court approval - extraordinary judicial sanctions acknowledging Trump’s systematic abuse of charitable status for political and personal gain.