Charity Bars Investment in Board’s Businesses
July 23, 2007 | Read Time: 1 minute
Under criticism from lawmakers, the Robin Hood Foundation has announced that it will no longer invest money in the hedge funds run by its board members or donors, reports Bloomberg.
The controversy does not concern Robin Hood’s regular charitable work. Instead, criticism arose over a separate emergency fund Robin Hood set up to meet potential shortfalls.
That fund grew from $20-million in 1998 to $144.5-million in 2005 and along the way paid out $14-million in management fees to board members who directed the hedge funds in which Robin Hood invested.
Read an article in The Chronicle about courting hedge fund managers for charity, including managers who sat on Robin Hood’s board.
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