You’ll see there is a defense—the estate cannot go after a subsequent transferee “that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith, and without knowledge of the voidability of the transfer avoided.” There is a different rule if the subsequent transferee gave partial, but not, value.
How to apply these principles in the charitable context is not obvious. However, if someone gets a transfer, and then they pay me for past or present legal services at market rate, then the bankrupt debtor can’t go after me. Likewise, I think it would be very very hard to go after any supplier or employee of a grantee because they provided value (supplies or labor) to the previous transferee in exchange for payment.
Section 550 allows you to go after subsequent transferees in some cases, although the rules are stricter than for initial transferees.
Look at this, from a major US law firm: https://www.jonesday.com/en/insights/2021/11/case-update-second-circuit-breathes-new-life-into-madoff-trustees-efforts-to-recover-ponzi-scheme-payments
You’ll see there is a defense—the estate cannot go after a subsequent transferee “that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith, and without knowledge of the voidability of the transfer avoided.” There is a different rule if the subsequent transferee gave partial, but not, value.
How to apply these principles in the charitable context is not obvious. However, if someone gets a transfer, and then they pay me for past or present legal services at market rate, then the bankrupt debtor can’t go after me. Likewise, I think it would be very very hard to go after any supplier or employee of a grantee because they provided value (supplies or labor) to the previous transferee in exchange for payment.