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Donald Trump to dissolve charitable foundation to avoid conflicts of interest

WATCH ABOVE: President-elect Donald Trump and his family are working to resolve potential conflicts of interest 25 days before he is sworn in. Mr. Trump released a statement on Christmas eve saying he would shut down his charitable foundation, but as CBS News correspondent Julianna Goldman shows us, it is a complicated effort – Dec 26, 2016

President-elect Donald Trump said Saturday he will dissolve his charitable foundation amid efforts to eliminate any conflicts of interest before he takes office next month.

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The revelation comes as the New York attorney general’s office investigates the foundation following media reports that foundation spending went to benefit Trump’s campaign.

READ MORE: Donald J. Trump Foundation under investigation by NY attorney general

Trump said in a statement that he has directed his counsel to take the necessary steps to implement the dissolution of the Donald J. Trump Foundation, saying that it operated “at essentially no cost for decades, with 100 per cent of the money going to charity.”

“The foundation has done enormous good works over the years in contributing millions of dollars to countless worthy groups, including supporting veterans, law enforcement officers and children,” he said in a statement.

“I will be devoting so much time and energy to the presidency and solving the many problems facing our country and the world. I don’t want to allow good work to be associated with a possible conflict of interest,” he said.

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READ MORE: Trump Foundation ordered to stop fundraising in New York

Trump said he will pursue philanthropic efforts in other ways, bu didn’t elaborated on how he’d do so.

A 2015 tax return posted on the non-profit monitoring website GuideStar shows the Donald J. Trump Foundation acknowledged that it used money or assets in violation of IRS regulations – not only during 2015, but in prior years.

Those regulations prohibit self-dealing by the charity. That’s broadly defined as using its money or assets to benefit Trump, his family, his companies or substantial contributors to the foundation.

READ MORE: Donald Trump demands Clintons shut down charitable foundation ‘immediately’

The tax filing doesn’t provide details on the violations. Whether Trump benefited from the foundation’s spending has been the subject of an investigation by New York Attorney General Eric Schneiderman.

In September, Schneiderman disclosed that his office has been investigating Trump’s charity to determine whether it has abided by state laws governing nonprofits.

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Documents obtained by The Associated Press in September showed Schneiderman’s scrutiny of The Donald J. Trump Foundation dated back to at least June, when his office formally questioned the donation made by the charity to a group supporting Florida Attorney General Pam Bondi.

READ MORE: Donald Trump’s kids offer access as a perk for charity donations

Amy Spitalnick, press secretary for Schneiderman’s office, said Saturday that the foundation “cannot legally dissolve” until the investigation is complete.

Trump’s announcement to dissolve his own foundation came a day after the president-elect took to Twitter to declare it a “ridiculous shame” that his son Eric will have to stop soliciting funds for his charitable foundation, the Eric Trump Foundation, because of a conflict of interest.

READ MORE: Eric Trump’s charity flouted philanthropic standards: AP investigation

“My wonderful son, Eric, will no longer be allowed to raise money for children with cancer because of a possible conflict of interest with my presidency,” Trump tweeted. “He loves these kids, has raised millions of dollars for them, and now must stop. Wrong answer!”

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Trump was in his South Florida estate, Mar-a-Lago, on Saturday, his retreat for most holidays. He spent the week meeting advisers and interviewing candidates for a handful of Cabinet positions that remain unfilled.

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