The major problems with Trump's foundation was that (a) it involved a lot of "self-dealing", where the foundation would pay for services/room rental etc at Trum

The major problems with Trump's foundation was that (a) it involved a lot of "self-dealing", where the foundation would pay for services/room rental etc at Trump properties, (b) some money that was outright spent on items for Trump, such as a portrait of him, (c) that he made specific promises regarding the use of funds, but never actually paid much or anything to the announced recipients, and (d) that he overstated the amount of money he had put up himself. (a) is not a crime by itself, but it raises red flags, and there usually needs to be a really good paper record showing, for example, that other options weren't available, and that only market prices were paid. (b) is basically misappropriation or embezzlement, but depending on the amounts involved, it can be considered a mistake and healed by paying it back. Not sure about (c) and (d)'s legality. There is absolutely nothing wrong with structure of, for example, the Bill and Melinda Gates foundation, or Soros' Open Society Foundation. Yes, the foundations are not subject to inheritance taxes. But the money is required to be spent on altruistic endeavours. It cannot be clawed back for personal expenses, not by the founders, nor by their descendants.