Charities: Give up Madoff-Tainted Donations
an editorial from Boston.com (Boston Globe):
Charities: Give up Madoff-tainted donations
With a court ruling that makes it unlikely that investors in the $65 billion scheme can keep more than what they handed over to Madoff in the first place, Boston charities stand to lose substantial support from philanthropies including Carl Shapiro’s family foundation. Although devastating, the ruling is necessary to bring restitution to Madoff’s other victims.
… Shapiro made $1 billion from Madoff over four decades.. Like a few other investors, Shapiro withdrew more money from his Madoff account than he deposited over the years. Last week, a federal judge ruled that investors could only claim what they put in, meaning that Shapiro and his foundation may have to pay back their profits, jeopardizing their charitable pledges. But the ruling also means that people who lost their entire nest eggs to Madoff will get something back. Although Shapiro’s money will be missed by charities, it would be unfair for him or his foundation to keep profits obtained via another person’s fraudulent actions – even to benefit worthy causes.