Eric Trump Foundation and St. Jude: Charity Golf Fundraiser Revenue Redirected Through Trump Organization Properties
Tier 4Documented2007-01-01 to 2017-06-30
Factual Summary
Beginning in 2007, Eric Trump hosted an annual Golf Invitational fundraiser at the Trump National Golf Club in Westchester County, New York, to raise money for St. Jude Children's Research Hospital. Eric Trump publicly promoted the event by emphasizing that the Trump Organization donated the use of the golf course at no cost, allowing nearly all proceeds to go directly to the children's hospital. In a 2011 interview, Eric Trump stated that the family donated the course so the foundation's fundraising costs were "close to zero."
A 2017 Forbes investigation, drawing on IRS filings and interviews with foundation insiders, found that this characterization was misleading. According to tax filings, the Eric Trump Foundation's costs for the golf event increased sharply after the foundation's board composition changed in 2011, with several new board members who were connected to or employed by the Trump Organization. The foundation's expenses for the annual golf event rose from $59,085 in 2012 to $230,080 in 2013 and $242,294 in 2014. Forbes reported that the Eric Trump Foundation paid the Trump Organization more than $1.2 million for use of Trump properties for fundraising events, despite the public claim that the facilities were donated free of charge.
Forbes also documented that beginning in 2011, more than $500,000 in Eric Trump Foundation donations were redirected to other charities rather than to St. Jude. Many of the recipient organizations were connected to Trump family members or interests, and several had no connection to pediatric cancer. Some of the recipient charities subsequently became clients of Trump golf courses. The investigation reported that the foundation's expenditures increasingly benefited Trump-owned businesses and Trump-connected organizations rather than maximizing the percentage of donations going to St. Jude.
The Eric Trump Foundation raised approximately $16.3 million for St. Jude between 2007 and 2016, a substantial sum. However, the discrepancy between the public claim that costs were "close to zero" and the documented payments to Trump properties, along with the redirection of funds to non-St. Jude charities with Trump connections, raised questions about whether donors were misled about how their contributions would be used.
In June 2017, the New York State Attorney General's office confirmed that it had begun an inquiry into the Eric Trump Foundation based on the issues raised by the Forbes investigation. The foundation was subsequently folded into the broader scrutiny of Trump family charitable operations, though no separate legal action was brought against the Eric Trump Foundation specifically.
Eric Trump stopped holding the golf fundraiser after 2016 and stated that the foundation had shifted its structure to ensure transparency.
Primary Sources
1. Eric Trump Foundation IRS Form 990 filings, 2007 through 2016, documenting rising event expenses and payments to Trump Organization
2. Forbes: "How Donald Trump Shifted Kids-Cancer Charity Money Into His Business," Dan Alexander, June 6, 2017
3. NY AG office confirmation of inquiry into the Eric Trump Foundation, June 2017
Corroborating Sources
1. ABC News: "Eric Trump funneled cancer charity money to his businesses, associates: Report," June 7, 2017
2. CNBC: "Trump Organization charged Eric Trump's cancer charity big bucks for golf events: Report," June 6, 2017
3. FactCheck.org: "Social Posts Distort Facts on Trump Charities," December 2019
4. Alliance Magazine: "Donations to Eric Trump Foundation funnelled to Donald Trump's business, says Forbes," 2017
Counterarguments and Context
Eric Trump stated that the Forbes reporting was misleading and that the foundation's costs included legitimate expenses for running a large-scale golf event, such as food, beverages, entertainment, and event logistics. He argued that the Trump Organization provided its facilities at a steep discount rather than at full market rate and that the foundation's overall record of raising millions for St. Jude demonstrated its charitable effectiveness. Eric Trump also stated that the foundation's giving to other charities was transparent and approved by its board. The Trump Organization argued that the services it provided to the foundation were priced fairly and that any payments reflected actual costs of hosting large events. Supporters noted that St. Jude itself acknowledged receiving substantial funds from the Eric Trump Foundation over many years and that the total raised for the hospital was significant by any measure. Critics responded that the core issue was the discrepancy between the public representation that costs were "close to zero" because the family donated the course, and the documented reality of more than $1.2 million in payments flowing back to Trump-owned businesses, along with the redirection of funds to organizations connected to Trump family interests rather than to the stated charitable beneficiary.
Author's Note
This entry is classified as Tier 4 because the primary evidence comes from investigative journalism, specifically the Forbes investigation, supplemented by publicly available IRS filings. While the New York Attorney General opened an inquiry, no formal legal proceeding resulted in findings or penalties specific to the Eric Trump Foundation. The IRS filings documenting the rising costs and payments to Trump properties are primary documents, but the interpretation of those payments as improper self-dealing relies on the investigative reporting rather than adjudicated findings.