The following article by David A. Fahrenthold and Drew Harwell was posted on the Washington Post website August 21, 2017:
Republican presidential candidate Donald Trump purchased this 128-room Palm Beach mansion in 1985 for a bargain price and turned it into a private club. But the mansion has brought Trump some controversy in the sunny Florida city. (Rosalind S. Helderman, Mary Jordan and Victoria M. Walker/The Washington Post)
In the past seven days — since President Trump said there were “fine people” among those marching in a violence-plagued “Unite the Right” demonstration in Charlottesville — the president’s Mar-a-Lago Club in Florida has been deserted by 16 charities that use its ballrooms for fundraisers.
Those charities are key customers of Trump’s club: They can pay up to $275,000 for a single night’s revelry. They also are an important marker of prestige in Palm Beach: When big galas are going on in Mar-a-Lago’s ballrooms, the island’s elite must come to Trump, gathering at a club that doubles as his home. Even as president, Trump has reveled in this role: He has dropped in to glad-hand and address the crowds.
Now, this exodus of customers has highlighted an unexpected consequence of the president’s decision to keep ownership of his businesses while in the White House.
That decision has made Trump money, certainly. It allowed businesses and governments seeking the president’s favor to funnel him money through his D.C. hotel. But it has also driven away customers, by injecting Trump’s divisive brand of politics into every business transaction — even a decision to rent a ballroom 990 miles south of Washington.
The story of charities deserting Mar-a-Lago has been breaking quickly over the past several days.
Here are five questions and answers about what’s happened so far.
How many charities have canceled in the last week?
In all, 16.
That includes 11 charities that had planned galas or other large dinner events. These are the most important events of Palm Beach’s traditional winter “season,” when wealthy people from colder climes gather for five months of gala balls, golf, croquet lessons, sequins and pastel fabrics. Some of the biggest charity galas can attract 600 people or more and raise more than $1.5 million in an evening.
The latest charity to move its gala was the Raymond F. Kravis Center for the Performing Arts in West Palm Beach, Fla. The center had held its “Palm Beach Wine Auction” dinner at Mar-a-Lago every year since 2013 and had planned to return next February. But the board said Monday it would move the event to the Kravis Center itself.
“The Palm Beach Wine Auction has worked hard to raise both funds and awareness for arts education for all children in our community. Recent controversy has shifted the focus away from the purpose of the event and our mission,” the center said, in a written statement attributed to chief executive Judith Mitchell. “We were able to secure the exact same date for the event of February 1 on our own property.”
Even before last week, Mar-a-Lago was facing an unusually slow season. It had only 16 galas on the schedule for the winter, compared with 21 the year before and 26 in its best year.
Then, after the president’s comments about Charlottesville, there was a new wave of cancellations, beginning with the Cleveland Clinic Florida on Thursday.
Others canceling galas or dinner events include the American Red Cross, the Salvation Army, the American Cancer Society, American Friends of Magen David Adom, Leaders in Furthering Education, the Palm Beach Zoo, the Preservation Foundation of Palm Beach, the Susan G. Komen breast cancer charity and the Autism Project of Palm Beach County.
In addition, five other charities said they would cancel luncheons planned at Mar-a-Lago.
The latest of those was the Unicorn Children’s Foundation, a Florida charity that helps children with ADHD, autism, dyslexia and other conditions. That charity had planned to move its annual fundraiser luncheon to Mar-a-Lago this winter. But the group said Tuesday morning it would move the event to another venue.
“Due to the political turbulence associated with this choice of venue it would be a disservice to our supporters and our children to hold our event at Mar-a-Lago,” said Sharon Alexander, the charity’s chief executive, in a written statement. “We prefer the conversations to be centered off the venue and instead focused on how we can help kids with special needs excel in their communities.
The other charities that have cancelled luncheon events at Mar-a-Lago were the Ryan Licht Sang Bipolar Foundation, MorseLife, Hearing the Ovarian Cancer Whisper and Big Dog Ranch Rescue.
In most cases, the charities have indicated they will find another venue for their events, instead of canceling them entirely.
Which nonprofits are sticking with Mar-a-Lago?
So far, we know of two.
The Palm Beach Police Foundation — whose Policeman’s Ball is one of Mar-a-Lago’s largest events — is “continuing with its plans” to hold the gala there again in 2017, spokeswoman Maureen O’Sullivan said Sunday.
The same is true for the Palm Beach County Republican Party, which has held its annual Lincoln Day dinner at Mar-a-Lago since 2013. “We have no plans to switch venues,” the party’s chairman, Michael Barnett, wrote Sunday.The same is true for the Palm Beach County Republican Party, which has held its annual Lincoln Day dinner at Mar-a-Lago since 2013. “We have no plans to switch venues,” the party’s chairman, Michael Barnett, wrote Sunday.
The good news for Trump’s club is that these two events are among Mar-a-Lago’s highest-paying event customers. The police foundation paid $276,000 to Trump’s club for rent, food and beverages at one recent gala, according to tax records. The Palm Beach County Republican Party pays about $145,000 for its dinner, Barnett said.
The coastal Trump National Golf Course Los Angeles used to be a sought-after spot for golfers, weddings, celebrities and film crews alike. But after President Trump’s campaign announcement in 2015, permit requests, tournaments and fees all shrank. (Video: Jenny Starrs/Photo: Dania Maxwell/The Washington Post)
How much is this costing the president?
It’s hard to say for certain.
Officials at the Trump Organization did not respond to a question about how much revenue Mar-a-Lago will lose because of the canceled events. Many charities won’t reveal how much they paid. It’s also unclear whether the charities that had already paid deposits are getting that money back.
The big gala events each seem to bring in more than $100,000 per night, according to a survey of charity leaders and tax documents. The luncheons can bring in anywhere from $24,000 to more than $80,000.
Even these lowball numbers yield an estimate of $1.1 million in revenue that Trump’s club could have expected from the 14 lost events. That’s a significant sum, although Mar-a-Lago has other streams of revenue: initiation fees, member dues, hotel suites, and restaurants and bars catering to members and guests.
In recent years, Mar-a-Lago has run profits between $4 million and $8 million, according to documents the club filed in court in Florida.
Are more cancellations coming?
That seems possible.
In the past several days, at least two other charities have appeared to waver in their decision to hold an event at the president’s club.
According to news reports, the Palm Beach Habilitation Center — which had planned a luncheon at the club — is holding a board meeting to discuss moving its annual wine-auction dinner away from Mar-a-Lago.
Is the same thing happening at other Trump businesses?
In some cases, yes.
View the post here.