Members of the board of the Ireland Funds America have each donated an extra $10,000 to cover the losses suffered from an alleged embezzlement, according to the Irish Times.
Board members normally donate $10,000 each year to the charity. This year Funds chairman John Fitzpatrick asked board members to make a one-off additional payment for the same amount to generate an extra $500,000 in response to the alleged fraud and loss. Not surprisingly he described 2018 as a “difficult year” for the Funds.
He praised the board’s move for showing “true commitment and philanthropy at its very best”.
According to the Irish Times filings for the New York-based charity indicate that $711,875 was allegedly embezzled via its Dallas office between 2015 and 2017. Legal and other professional costs incurred in dealing with the alleged fraud have totalled $1 million.
The Funds are attempting to recover damages of $958,000 and exemplary damages of $1.9 million against a staff member who has pleaded her fifth-amendment right under US law to protect herself against self-incrimination.
The filings showed that the Funds’ revenue fell by 12% last year to $28.9 million. During the year the charity donated $20.1 million via 684 grants.
Mr Fitzpatrick is stepping down as chairman pf the Ireland Funds America having served two terms. He is being succeeded from 1 January by New York-born former banker Eugene McQuade, who has been involved with the charity for the past 25 years.
Get free email updates
Keep up to date with fundraising news, ideas and inspiration with a weekly or daily email. [Privacy]