One thing to consider: it is possible that the ultimate real-world effect of a donation to certain organizations would be increasing the funds flowing back to the FTX bankruptcy estate rather than furthering the donor’s charitable intent.
For one, donating any significant funds could increase the organization’s profile as a clawback target. Two, some organizations may need to close down whether you provide some additional funding or not. Three, some organizations could benefit from the cleansing waters of bankruptcy themselves (or settling any FTX claims first) before being infused with new money. Finally, if you want to donate to an organization with serious clawback risk, you may want to think about ways to structure that donation to minimize creditor risk.
All of this is based on my view that prospective donors have no ethical obligations to FTX victims. Your mileage may vary if you hold a different view.
That makes sense, thanks. Although this will not apply to organisations/individuals that were promised funds from the Future Fund but didn’t receive any, right? This case is pretty common, AFAICT.
If an organization received nothing, there is nothing to claw back.
I see no risk to donating to those organizations (unless you feel an organization somehow so overextended themselves in expectation of FTX cash that they cannot recover from it disappearing—that is not a clawback risk though).
One thing to consider: it is possible that the ultimate real-world effect of a donation to certain organizations would be increasing the funds flowing back to the FTX bankruptcy estate rather than furthering the donor’s charitable intent.
For one, donating any significant funds could increase the organization’s profile as a clawback target. Two, some organizations may need to close down whether you provide some additional funding or not. Three, some organizations could benefit from the cleansing waters of bankruptcy themselves (or settling any FTX claims first) before being infused with new money. Finally, if you want to donate to an organization with serious clawback risk, you may want to think about ways to structure that donation to minimize creditor risk.
All of this is based on my view that prospective donors have no ethical obligations to FTX victims. Your mileage may vary if you hold a different view.
That makes sense, thanks. Although this will not apply to organisations/individuals that were promised funds from the Future Fund but didn’t receive any, right? This case is pretty common, AFAICT.
If an organization received nothing, there is nothing to claw back.
I see no risk to donating to those organizations (unless you feel an organization somehow so overextended themselves in expectation of FTX cash that they cannot recover from it disappearing—that is not a clawback risk though).