Tuesday, December 30, 2008
The impact of the Madoff scam on charitable donations is discussed in Deborah Brewster, Non-profits face donor ire over Madoff exposure, FT.com, Dec. 28, 2008.
Here are a few excerpts from this article:
Non-profit organisations may find it harder to raise money, and will almost certainly face calls for greater scrutiny by donors and regulators, after losing billions of dollars by investing with Bernard Madoff. * * *
Several foundations and charities have closed after losing either their endowment or their donors through investments with Mr Madoff.
Others have lost money but say they will continue and try to replace funding. Many endowments had all their money, or a large part of it, invested with Mr Madoff. * * *
Some in the non-profit world * * * suggested there should be greater regulatory oversight of non-profit investments, possibly by making an amendment to the section of the US tax code, 503c(3), which exempts a non-profit from paying tax.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.