The Boston Museum of Fine Arts has benefited from the Shapiros’ foundation.
(File/The Boston Globe)
Globe Editorial
The fallout from Bernie Madoff’s swindling extends to charities that rely on contributions from people who invested in his Ponzi scheme -- and Boston museums and medical centers are likely to be among the big losers.
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’s foundation has given tens of millions of dollars to Boston area hospitals, art organizations, and academic centers, including more than $17 million in 2008 alone. It’s a sign of his generosity that the foundation is honoring its multi-year commitments to nonprofits including the Museum of Fine Arts, even as it stopped making new donations when the scandal came to light.
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.
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