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Madoff scandal rocks Jewish philanthropic world

Area foundations take stock — or lose it

 
 
 

A handful of local foundations appear to be unscathed by the fallout from Bernard Madoff’s alleged Ponzi scheme, but the full effects on donors have yet to be realized.

While the country’s economic downturn has taken place over the course of several months, this single instance was sudden and provided no time for those affected to make changes to limit the damage. Mark Charendoff of Englewood, president of the Jewish Funders Network, called the fallout on his organization’s members “absolutely devastating.”

“In a way, this is worse than the general economic downturn,” he said.

Unlike the unrest in the stock markets that has rocked the nonprofit donor base recently, the fallout from this scam is irreversible and, in some cases, complete.

“People understand that as much as the market went down, the market will go up. That’s not the case here,” Charendoff said. “There are some people who’ve just had all their money all in this one ‘safe place.’ That’s something that they just can’t recover from.”

One of the most notably hit organizations in New Jersey is the family foundation of Sen. Frank Lautenberg, reportedly one of the wealthiest members of Congress.

“Sen. Lautenberg was an investor in Bernard Madoff’s investment fund, primarily in the form of his family’s charitable foundation,” said Lautenberg’s spokesman, Scott Mulhauser.

According to a 2006 tax document obtained through the nonprofit tracking Website Guidestar.org, the foundation was a donor to more than two dozen Jewish and Israeli causes. Its contributions for 2006 totaled $765,509 to more than 100 organizations, including American Friends of Magen Dovid Adom, American Friends of Israel, the Anti-Defamation League, Chai Lifeline, Hadassah, UJA MetroWest, and UJA Federation of Northern New Jersey.

UJA-NNJ issued a statement on Tuesday that it has no connection with Madoff and remains unaffected.

“UJA Federation of Northern New Jersey and its Endowment Foundation did not have a relationship with Madoff, and we have confirmed with SEI, our investment manager, that no portion of the Endowment Foundation’s portfolio is invested with Madoff,” according to the statement.

Similarly, the Teaneck-based Russell Berrie Foundation had “zero exposure with Madoff,” said its president, Angelica Berrie. While the rest of the financial world takes a hit, Berrie looked at the situation as an opportunity for those who still have the means to make up for charities’ losses.

“The real emergency in the next few years is going to be the emergency in our community,” she said. “We have the opportunity to exercise our humanistic values.”

This new crisis within the fund-raising world will last years, too, said Charendoff.

“We don’t know how many years and we don’t know how severe it will be,” he said. “There are charities that are going to be affected that won’t even know about it for a year.”

While some organizations have no connection with Madoff and seemingly have been spared, they cannot yet account for all of their donors. For example, he said, a charity that received a six-figure gift from a donor this December may expect and plan for a similar gift next year.

“Next December is going to roll around and they’re going to find out the donor doesn’t have the capacity to make the gift,” he said.

The Jewish nonprofit world will eventually recover, though, he said.

“The only way we’re going to be able to minimize the damage to the charities we all care about is to work together to figure out what the needs really are — to figure out which programs can be salvaged, postponed, which organizations should merge,” he said. “We can’t avoid the damage but it is in our power to minimize it.”

 

More on: Madoff scandal rocks Jewish philanthropic world

 
 
 

‘Golden Boy’ Merkin charged with misleading Jewish investors, groups

Bernard Madoff is not the only trustee of Yeshiva University who resigned in shame last week.

While international attention continues to focus on Madoff, who faces charges for his alleged $50 billion Ponzi scheme, some leaders in the Jewish community, particularly within modern Orthodox institutions, are expressing shock and anger at the role played by J. Ezra Merkin, a prominent investment guru and philanthropist who appears to have misled at least some investors.

 
 

Massachusetts community reeling from foundation collapse

The news sifted through the Jewish community north of Boston, sparking shock, sadness, and regret.

The Robert I. Lappin Charitable Foundation, a pillar of the North Shore community and a supporter of popular programming like the Youth to Israel program, joined the mounting list of Jewish casualties of the still-unfolding Bernard Madoff financial scam.

 
 

The securities fraud of Bernard Madoff has rocked the Jewish nonprofit world — and the worst may be yet to come.

 
 
 
 
 
 
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Five months in Kenya

Changing lives for the better — including her own

When you step off a 15-hour plane ride and face the stark realization that you will be without running water, a flushing toilet, electricity, a refrigerator, a microwave, or air conditioning for the next five months, that is when you know you have stepped out of your comfort zone. When you realize that you are unexpectedly the only white person in the village in which you will be living, let alone the only Jew (my coworker thought we were extinct), that is when you know your comfort zone is worlds away.

This is how I spent much of the last half-year, and I loved it. You might think I am crazy, and I will not disagree with you. However, when you throw yourself into a culture half-a-world away from your own, forcing you to challenge your own beliefs, you live in constant fascination at how the world operates so smoothly — after you learn to shower properly with a bucket, milk a cow, slaughter a chicken, and cook over a wood-burning fire, that is.

 

Emphasizing the J in JCC

With Taub challenge met, the ‘important work’ begins

There was good reason for celebration in the board room of the Kaplen Jewish Community Center on the Palisades on Tuesday night. Two weeks before, the JCC had received a check for $1.5 million from the Henry and Marilyn Taub Foundation — marking the successful conclusion to six years of fundraising and construction that renovated the JCC’s 40-year-old building and brought in $32 million in donations from the community.

The board members had reason to drink champagne. They had succeeded in an audacious fundraising campaign — one whose scope had sparked heated discussions over the years. And they had reached into their own pockets to grow the institution they loved, that many of them had grown up in, giving to the original capital and endowment campaign and then, this past year, to what was called the Taub Community Challenge. That, in fact, had been a condition of Henry Taub, when he agreed, on his hospital bed shortly before his death last March, to donate $1.5 million: The JCC had to come up with $3 million from other donors, and within a year. “Henry wanted the community to step up and take ownership,” recalls Pearl Seiden, president of the JCC.

 

Focus on European Jewry

Belgium: One nation, divided

Few Jewish couples define their marriage as “mixed” just because bride and groom were born and raised 30 miles apart in the same country.

Linda and Bernard Levy, however, live in Belgium, a country whose long experiment in fusing two distinct cultures recently has been showing signs of breakdown. With the Dutch-speaking Flemish half of the country increasingly at odds with the French-speaking part, Belgium’s corresponding Jewish communities are finding themselves at loggerheads, as well.

Linda was born in Antwerp, the capital of Flanders in the self-governing Flemish region. She rarely uses Flemish (similar to Dutch), the language of her youth, since she married Bernard, a Francophone from Brussels. They live just outside Brussels with their three children.

 

RECENTLYADDED

Mohammed Hameeduddin: Emphasizing commonality is key

As a long-time resident who is completing his first two-year term as mayor of Teaneck and was decisively re-elected to his third council term on Tuesday, Mohammed Hameeduddin has come to understand and revel in the commonalities between his Muslim community and the Jewish community which he serves, and which helped elect him.

Being on the campaign trail — such as it was, in the run-up to this past Tuesday’s municipal’s elections — highlighted one aspect of that commonality.

“The Jewish people of Teaneck are very similar to the Muslim community, because when you walk in, the first thing everybody makes sure to ask is ‘Did you eat?’ That’s the first question every grandmother asks. It’s very similar if you walk into a Muslim household from south Asia,” says Hameeduddin, whose parents came to America from India in the late 1960s.

 

Focus on European Jewry

Belgium: One nation, divided

Few Jewish couples define their marriage as “mixed” just because bride and groom were born and raised 30 miles apart in the same country.

Linda and Bernard Levy, however, live in Belgium, a country whose long experiment in fusing two distinct cultures recently has been showing signs of breakdown. With the Dutch-speaking Flemish half of the country increasingly at odds with the French-speaking part, Belgium’s corresponding Jewish communities are finding themselves at loggerheads, as well.

Linda was born in Antwerp, the capital of Flanders in the self-governing Flemish region. She rarely uses Flemish (similar to Dutch), the language of her youth, since she married Bernard, a Francophone from Brussels. They live just outside Brussels with their three children.

 

focus_on_european_jewry

Lithuania: Bitterness on both sides

Lithuania’s 800-year-old connection to its Jewish population broke down in 1941, when the Nazis invaded the country and murdered nearly all of its 200,000 Jews — often with the complicity of local Lithuanians.

Last month, 70 years on, Lithuania finally passed historic compensation legislation to provide some $50 million in compensation to Jewish families whose property was confiscated during the Shoah. Jewish groups hailed the move as a milestone for Lithuanian-Jewish relations.

Lingering bitterness on both sides over the discussion of Lithuanian complicity in the Holocaust remains an obstacle to better ties, however.

 
 
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