New York Attorney General Orders Trump Foundation to Immediately Cease Fundraising

New York Attorney General Eric Schneiderman issued a cease-and-desist order requiring the Donald J. Trump Foundation to immediately stop soliciting contributions in New York State because it had been operating for nearly 30 years without proper registration. The order revealed that the Trump Foundation had never obtained the required registration under Article 7-A of New York’s Executive Law, which mandates that charities soliciting contributions submit to annual audits and oversight. The Foundation’s failure to register meant it had operated outside legal oversight throughout its existence, allowing the systematic fraud and self-dealing that would later be documented in detail.

Background

New York law requires all charitable organizations that solicit donations to register with the state Attorney General’s Charities Bureau and submit to annual financial reporting and audits. This oversight is designed to prevent fraud and ensure charitable assets are used for legitimate charitable purposes rather than enriching founders or supporting non-charitable activities. The Trump Foundation had been incorporated in New York in 1987 but never completed the required registration, operating in violation of state law for 29 years.

The cease-and-desist order came amid mounting evidence of Trump Foundation wrongdoing documented by Washington Post reporter David Fahrenthold. His investigation had revealed illegal self-dealing, political contributions, and use of foundation assets to settle Trump’s business legal disputes. The Attorney General’s order noted that the Foundation had solicited more than $25,000 in contributions annually without proper registration, subjecting it to penalties of up to $25,000 and dissolution.

The timing was particularly significant as it came during the final month of the 2016 presidential campaign, when Trump was touting his supposed charitable generosity while running against Hillary Clinton. The order undermined Trump’s claims of philanthropic activity and highlighted his pattern of flouting legal requirements that apply to ordinary citizens and organizations.

Significance

The cease-and-desist order marked the beginning of formal legal action against the Trump Foundation that would ultimately lead to its dissolution. By operating without registration, the Foundation had evaded the annual audits and financial reporting that would have revealed its illegal activities years earlier. The lack of oversight enabled Trump to treat the Foundation as a personal checkbook with no independent accountability.

Attorney General Schneiderman’s action initiated the investigative process that culminated in the June 2018 lawsuit alleging “persistent illegal conduct” and seeking dissolution. The order demonstrated that the Foundation’s violations were not merely ethical lapses but systematic legal violations spanning decades. In his statement announcing the order, Schneiderman noted, “The Trump Foundation is in clear violation of New York law,” signaling that more serious legal consequences were coming. The Foundation’s long-term operation outside legal requirements exemplified Trump’s broader pattern of treating legal and regulatory obligations as optional inconveniences rather than binding constraints on his conduct.