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Madoff scandal rocks Jewish philanthropic world

Area foundations take stock — or lose it

 
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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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Dentistry in Africa

Local father-daughter duo fix teeth in Jewish Ugandan village

Kayla Grunstein’s parents, Shira and Dr. Robert Grunstein, didn’t want her to “be a brat,” Kayla said.

They wanted her to learn something about the world and her place in it, about the importance of work and the satisfaction of a job well done, about gratitude and generosity and giving.

They also were not adverse to allowing the 14-year-old some excitement and adventure at the same time.

In fact, a lot of excitement and adventure. With the Abayudaya in Uganda.

This is how it happened.

Her father, Dr. Robert Grunstein, is a dentist. He lives in Teaneck but has spent his career working mainly with lower-income children in Passaic and Paterson. He had the brilliant idea (yes, this is journalism, but some things are so clear that they just must be said, so brilliant idea it is) of buying an old fire truck and turning it into a mobile dental office. “Kids love fire trucks, and they are ambivalent at best about going to the dentist,” he said. “If you mix the two, it becomes more palatable.

 

We’ve got the horse right here…

Local Orthodox family wins the Kentucky Derby. Really!

It took American Pharoah barely more than two minutes and two seconds to win the 2015 Kentucky Derby.

For Joanne Zayat of Teaneck, whose husband, Ahmed, owns American Pharoah (and yes, that is how it is spelled), those two minutes and barely more than two seconds stretched out and then blurred and bore little relation to regular time as it usually passes.

There she was — really, there they were, Ahmed and Joanne Zayat, their four children — all Orthodox Jews — and a small crowd of friends and relatives, in one of the owners’ boxes at Churchill Downs in Lexington, Kentucky, on a glorious flowering spring Shabbat, watching as their horse won America’s most iconic horse race.

How did they get there?

 

Born to lead

The head of the Jewish Federation of Northern New Jersey tells his story — and federation’s

Learning to cull less-than-perfect goldfish as they hurtle by you on a slimy assembly line, using your bare hands, disposing of them in garbage bags, is not a skill most nice Jewish boys acquire.

Nor is standing in the middle of an ice-cold pond in a torn wetsuit and hand-selecting the most decorative available koi, at the orders of overseas hoteliers, again with your bare hands.

Jason Shames of Haworth did both those things, during a stay on an Israeli kibbutz. Those and similar skills, oddly enough, were part of a logical progression that took Mr. Shames from the Bronx to the helm of the Jewish Federation of Northern New Jersey, a job he accepted four years ago this week.

 

RECENTLYADDED

‘Indescribable’ connections

Zahal Shalom brings Israeli veterans to Ridgewood for touring, love

What happened when the alarm went off in the Pentagon was a reminder of one of the reasons local volunteers behind Zahal Shalom are so eager to open their homes, their schedules, and their wallets to 10 wounded Israeli veterans each year.

During their two-week stay, the Israelis get to see New Jersey, New York, and Washington, D.C.

In Washington, they visited the monuments, ate in the Senate dining room, and took a tour of the Pentagon, where — and this was not on the five-page itinerary — a fire drill caused alarms to clang loudly.

For Anat Nitsan, the alarm brought back memories from the Yom Kippur war, more than 40 years ago. Now an art curator, then she was a soldier at the air force base at Sharm el-Sheikh, at the southern tip of Sinai. She survived the initial surprise attack from the Egyptian air force. And then, in a case of friendly fire, she watched in horror as a missile seemed to target her directly. Somehow she survived that too — though not without a case of post-traumatic stress disorder.

 

We’ve got the horse right here…

Local Orthodox family wins the Kentucky Derby. Really!

It took American Pharoah barely more than two minutes and two seconds to win the 2015 Kentucky Derby.

For Joanne Zayat of Teaneck, whose husband, Ahmed, owns American Pharoah (and yes, that is how it is spelled), those two minutes and barely more than two seconds stretched out and then blurred and bore little relation to regular time as it usually passes.

There she was — really, there they were, Ahmed and Joanne Zayat, their four children — all Orthodox Jews — and a small crowd of friends and relatives, in one of the owners’ boxes at Churchill Downs in Lexington, Kentucky, on a glorious flowering spring Shabbat, watching as their horse won America’s most iconic horse race.

How did they get there?

 

100 years in Hoboken

United Synagogue’s building celebrates its centennial

Hoboken is surprisingly small, given its outsize reputation.

It’s only got 50,000 residents, and its nickname, Mile Square City, is roughly accurate. (“It actually covers an area of two square miles when including the under-water parts in the Hudson River,” Wikipedia helpfully tells us. It’s hard to understand why anyone would want to count the underwater parts.)

It’s a city with a storied history — Frank Sinatra, “On the Waterfront” and therefore Marlon Brando, gangsters, music, angst, longshoremen, gritty local color. Its lack of parking, which makes finding a space in Manhattan seem relatively as easy as finding one in, say, Montana, is legendary.

For the last few decades, Hoboken’s been home to young people who work in Manhattan but don’t want or can’t afford to live there; it pulses with singles, who might make noises about staying but have tended to move once they’re married and certainly once they have kids.

Hoboken also has a more recent history of apparently being on the cusp, the verge, the very sharp tip of change, but somehow not quite making it.

 
 
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