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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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Sending socks to the IDF

Teaneck rabbi to bring much-needed supplies to soldiers in Israel

Rabbi Tomer Ronen, rosh yeshiva of Ben Porat Yosef in Paramus, and his wife, Deganit, are the proud parents of a son in the IDF.

Their son, a 20-year-old who went all the way through SAR in Riverdale and then went to Israel, where he studied at a yeshiva for a year and then joined the IDF exactly a year ago, is in a parachute unit. “For the last three weeks, they were training and training and training,” Rabbi Ronen said. Last Thursday, “he called and said, ‘Abba, Ima, we are out. We are giving away our cell phones.’ So we knew that it was happening that night.”

So now the Ronens are both proud and worried parents; worried enough, in fact, to decide that they could no longer sit at home in Teaneck and worry. “To be the parents of a lone soldier is hard,” Rabbi Ronen said. “To be the parent of a lone soldier and know that he is going in — that is even harder.”

 

Blue and white moon

Israeli lunar mission makes stop in Paramus

In the May 1944, Itzhak Bash and 299 other Jewish engineers were removed from Auschwitz and taken to work at a Volkswagen factory that was assembling the V-1 flying bomb.

He had been a textile engineer in Hungary before the Nazis invaded and deported the Jews, but the Germans didn’t need his specific technical skills; they wanted slave laborers they could trust with careful work. The first V-1s from occupied France landed on London on June 13, 1944. As the Allies pushed into France, Mr. Bash was switched to work on the V-2, the first rocket to reach the edge of space. By the war’s end, more than 3,000 V-2 rockets had been launched.

Mr. Bash was one of the lucky hundred men who had survived from the original group of 300 engineers. Some were killed by Allied raids; others by the conditions at the work camps.

 

‘Come on over…’

As summer starts, we look at the Palisades Amusement Park through the eyes of its longtime publicist, Sol Abrams

“Palisades has the rides... Palisades has the fun... Come on over.

Shows and dancing are free... so’s the parking, so gee... Come on over.”

Suppose, just for a moment, that you might want to take an elephant water-skiing.

(No, don’t ask why. That’s a question for another time. Just go with it.)

Okay. So you’ve got the elephant. You’ve got a body of water big enough for it — the Hudson River.

Oh, and you happen to be on 30 acres that span Cliffside Park and Fort Lee, in southern Bergen County, not far at all from the river — but the direction to the river is less east than it is down. Straight down a jagged cliff. (It’s not called Cliffside Park for nothing.)

 

RECENTLYADDED

No light yet

‘Remember – she’s 2’

Although this community does not feel the barrage of rockets, the adrenaline and strain of IDF service, the upside-down-ness of life after a sudden recall to active service, the sleepless worry of parents, the responsibility of hundreds of innocent deaths on the other side, or the uncertainty of the outcome of the situation in Gaza, many of us have deep connections to Israelis, and even more of us want to help in any way we can.

Here are some stories of how this community – and remember that New Jersey is about the size of Israel – is reacting. These stories are just a few of very many, but we think that they are both representative and illustrative.

Please note that we have been careful not to include too much information in these stories. We have not said anything about where IDF members are serving, or what they are doing – or even given their names. We know that the IDF does not think it safe to publicize such information, and we comply with that request willingly.

 

No light yet

‘He meant to live his life’

Ilan Vakhnin, principal of the Shakim High School in Nahariya, is on the steering committee developing policy and programming for th Partnership 2Gether, a sister city relationship between the Jewish Federation of Northern New Jersey and Nahariya, a city in southern Israel.

He was part of a six-person delegation, in town for a few days of meetings, when his cell phone rang.

On the other end, his daughter was crying so hard that he had to tell her to stop it if he was going to be able to understand what she was telling him. Eventually, she was able to get the message out.

 

No light yet

‘Daddy, come home’

Rabbi Avram and Leah Herzog of Fair Lawn are the aunt and uncle of two nephews who live in Israel. They are the sons of Rabbi Herzog’s sister, Zehavah Bigman, who made aliyah with her husband, Joel, more than 30 years ago.

Both of the nephews have completed their IDF service. Both are married; the older one at 32, has four children, and the younger one, 26, has a baby.

Both, like most Israeli men their age, are in the reserves.

 
 
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