In October 2006, Mr. Trump got into a small dispute with the city of Palm Beach, and erected a magnificent 80-foot flagpole to display an enormous American flag. But because the city only allowed 42-foot flagpoles, it imposed a $1,250/day fine on Mr. Trump.
When the fines grew to $120,000, Mr. Trump offered to donate that penalty to veterans’ groups, and to relocate the flagpole. The city agreed. And so in 2007 Mr. Trump wrote a check for $100,000 to the Fisher House.
The check Mr. Trump signed, though, was from the Trump Foundation, not from his own assets. This, however, was purely an isolated mistake. Except for the other time that $158,000 in Foundation monies were used to settle a lawsuit for one of Mr. Trump’s New York golf courses.
But those are the only two times the Trump Foundation has been accused of this violating tax law by using charitable monies to pay off business settlements for golf resorts.