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Khloe Kardashian & Lamar Odom Divorce News Update 2014: Did 'KUWTK' Reality Star Donate to Estranged Husband's Inactive Charity?

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First Posted: Aug 26, 2014 10:52 AM EDT
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(Photo : Instagram/khloekardashian, Wikimedia Commons)

Khloé Kardashian may have donated money to estranged husband Lamar Odom's inactive charity.

Cathy's Kids was founded back in 2004, shortly after the former NBA basketball player's mother passed away of stomach cancer. However, it has actually been inactive for years, as one executive from accounting firm Boulevard Management claimed: "As far as I know right now, it's still dormant."

RadarOnline reported that despite the organization's inactive status, the "Keeping Up with the Kardashians" star continued to donate all proceeds from her eBay auctions -- $11,996 in 2012 and $5,342 in 2013. Instead of being distributed as a grant, the money donated to the non-existent charity ended up going towards "professional fees and other payments to independent contractors."

ESPN previously investigated the charity and revealed, "Cathy's Kids never gave any grant money to cancer-related causes and that the charity primarily existed to finance two elite youth basketball travel teams" -- which "could be a violation of tax law."

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According to tax experts, dormant charities can be a way for the wealthy to lower their tax bills: "In certain instances, individuals may be giving money to charities and those charities don't in all cases do a great amount of charitable work. The system as it stands can be and is being abused. We cannot be in a situation where very wealthy individuals are able to wipe out their tax bills by using these reliefs."

However, Khloé Kardashian defended Lamar Odom when he was in the middle of the charity scandal. "Not one penny [of the donations] went to help Lamar personally or any member of his family," she insisted. "No charitable funds were misused, and the IRS has repeatedly given Cathy's Kids a clean bill of health, confirming that there were no improprieties." 

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