Where Most Needed

The purpose of the Katrina Emergency Tax Relief Act of 2005 was not just to benefit victims of the hurricanes, but also to keep contributions flowing to other charities.  So Boone Pickens took advantage of KETRA and catapulted to fifth place in the 2005 Slate 60 largest charitable contributors with a $165 million gift to Cowboy Golf, a charity that raises money for Oklahoma State University athletics. 

Mr. Pickens did not make the 2004 list and was 19th on the 2003 Slate 60 with another gift to alma mater OSU. 

KETRA encouraged contributions by removing limits on the deductibility of large donations.  But there were provisions in the act to ensure that the contributions went to operating charities, not just warehoused in donor-advised funds.  That's why the New York Times found it noteworthy that the funds from the contribution immediately went to a hedge fund controlled by Mr. Pickens (who also sits on the board and investment committee of Cowboy Gold Golf).

CNN picked up the Times story, which led to a rebuke from a conservative watchdog group, who noted that there was nothing illegal about Mr. Pickens' contribution to a charity that then invests the money with his own company.  (Doesn't conflict of interest count?) 

For some perspective on this, he also gave $7 million to the American Red Cross for Katrina relief.  A lot for most of us, but not much compared to the $165 million for OSU.  But after all, the purpose of KETRA was to make sure that contributions keep flowing to other charities, like college athletics.  As the cover story over at the Chronicle of Philanthropy suggests, the largest donors give to the causes they feel personally passionate about.  Even when a catastrophe wipes out a major city. 

The Slate 60 is a joint project of Slate and the Chronicle of Philanthropy.