Justice Robert A. Onofry
Intervenor-respondent Steven R. Schlesinger and The Attorney General of the State of New York (“OAG”) each concurred that $8.1 million in prior charitable distributions, which were effectuated by Schlesinger during his tenure as Receiver should be approved. The OAG supported approval nunc pro tunc of the unapproved distributions because it serves the best interests of the Kermit Gitenstein Foundation’s past and future charitable beneficiaries. The court concluded, among other things, that the $8.1 million in distributions effectuated by Schlesinger were, as a threshold matter, made to qualified charities under Section 501(c)(3) of the Internal Revenue Code and that the recipient organizations were organized and operated for religious, charitable, scientific, literary or educational purposes. Therefore, said the court these distributions and grants were consistent with the overrall foundation purpose articulated in the Certificate of Incorporation (“COI”). The court then examined the COI of the Kermit Gitenstein Foundation Inc. itself, which establishes the parameters for the legitimacy of the distributions. The court subsequently approved the $8.1 million in prior charitable distributions.