guidestar.org

Foundations Invested with Madoff Gave Away $73M in 2007

Each morning's papers yield new names and devastating losses of those invested in Bernard Madoff's Ponzi scheme, including hundreds of prominent U.S. nonprofits and foundations.

While many betrayed investors lament the disappearance of their nest eggs, it seems that foundations that benefited from Madoff's time bomb of lucrative returns gave much of their profits away, leaving them with little to continue operations and grant-making.

In a report compiled by Bloomberg from last year's tax returns listed on Guidestar.org, foundations who have disclosed their investments with Madoff gave away a total of $73 million last year.

Several foundations have been forced to close their doors as a result, including the JEHT Foundation, which blamed its investments with Madoff in a heartfelt letter to supporters, and the Picower Foundation, which had previous assets of $1 billion, from which it gave generously to institutions such as M.I.T. and the New York Public Library.

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Tags: foundations, guidestar.org, JEHT foundation, JehtFoundation, madoff, nonprofits, picower foundation, PicowerFoundation

IRS Revises Charity Tax Rules

by Tracy Chait (RSS feed) —

Filed under: Charity

In a highly-anticipated overhaul, the IRS has successfully revised its rules for charities filing taxes. Form 990 will now require charities to disclose employee salaries greater than $150,000 and will also ask organizations to report "key employees" who control a 10% or greater portion of the charity's activities. The changes will arguably make many charities more transparent and therefore easier to research on behalf of potential donors.

Guidestar.org, the non-profit data kings, will use this new information to provide more comprehensive analysis of the non-profits in its database, all in the attempt to encourage charitable giving by providing individual donors (and their estate planners) with the facts they need.

Tags: charitable giving, CharitableGiving, charity, guidestar.org, irs, taxes