Grantmakers in the News

May 1, 2006

New York Charitable Asset Fund Begins Its Charitable Giving Program

Established in 2002 through legislation that authorized the conversion of Empire Blue Cross into a for-profit entity, the New York Charitable Asset Fund will soon get its charitable giving program underway. The Fund's mission is to expand health care coverage for poor and uninsured New Yorkers. In its words, the Fund will "expand and enhance access to health care to populations that are unable to access health care, and support programs that inform and educate New Yorkers about public health issues and empower communities to address these issues".

Through the health care conversion of Empire Blue Cross, the Fund received 5% of Empire's assets, while 95% went to the State itself to support programs funded through the Health Care Reform Act. This distribution of Empire Blue Cross assets at the time of its conversion prompted criticism from those who believed the New York Charitable Asset Fund should receive all of Empire's charitable assets and a lawsuit from Consumers Union and other advocacy groups. This suit failed, but the Fund's charitable activities were delayed until late summer 2005.

The New York Charitable Asset Fund has now begun its work by constituting its three-member board and building its staff. It is also hoped that proceeds from future health care conversions may continue to increase the Fund's endowment. The Fund will be located in New York City.

Source: "A Foundation Grows in Albany". The New York Nonprofit Press, January 2006.