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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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In balance, in harmony

Agnes Adler is a little pixie of a thing with a musical Hungarian accent. As she and her husband David walk into a room, she tells him to smile, to say hello, not to be a grump, and he lovingly responds, “Yes, Mammi, whatever you say.” He is wont to stay in the background, however, as an invisible flying buttress, supporting her in artistic endeavors and much more, while also creating his own massive sculptures.

David stands a full head taller than his wife, continues to smile the smile of the gentlemen chauvinists of his generation. He and Aggie love to sharpen their blades on their wit and humor. She complains, “I have to do everything and he expects me to wait on him hand and foot. Men! Impossible!”

 

Haiti: Two years later

‘When all else is broken, human dignity must stand whole’

Two years after the earthquake that devastated Haiti, medical students at Quisqueya University earlier this month took part in the island nation’s first “White Coat Ceremony,” marking the commitment of medical students there to providing compassionate, patient-based care.

This symbolic ritual for future doctors, now common at U.S. and Israeli medical schools, was introduced in 1993 by the Englewood Cliffs-based Arnold P. Gold Foundation. It has since spread to 18 countries, including Afghanistan, Japan, and now Haiti, thanks to the efforts of Tenafly resident Dr. Galit M. Sacajiu.

“Some of you may be asking yourselves, when medical school buildings and operating rooms have yet to be rebuilt and a single medical textbook is a luxury, when we have no laboratories, and so many of our brothers and sisters still live in makeshift homes, why invest in an event such as this ceremony of humanism in medicine?” asked Sacajiu, in her remarks at the Jan. 16 ceremony.

 

Love and hate in Bergen County

Communal meeting, interfaith gathering follow in Rutherford bombing’s wake

With the Jewish communities of Bergen County on heightened alert, some 200 religious and community leaders gathered on Jan. 12 to discuss the recent string of anti-Semitic incidents in the county with law enforcement and government officials.

The meeting followed by one day the most recent, and most serious, attack — a firebombing that could have claimed the lives of eight people. The incident targeted the old Queen Anne building in Rutherford that houses Orthodox Congregation Beth El, as well as the home of its rabbi and his family. Five of the eight potential victims were children.

 

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Iran threat

Will March 5 be D(ecision) Day?

WASHINGTON – March 5 is shaping up to be a crucial day in the effort to rein in Iran’s nuclear program.

In Vienna, the International Atomic Energy Agency (IAEA) will convene to consider its inspectors’ latest report on Iran’s nuclear program. The last such report came closer than ever to indicting the Iranian regime for making weapons, and it helped spur stronger international sanctions against Tehran.

Several hours later, in Washington, Israeli Prime Minister Binyamin Netanyahu will deliver a speech to an American Israel Public Affairs policy conference about what should happen next with Iran. Either before or after the AIPAC meeting, Netanyahu likely will meet with President Barack Obama to discuss Iran options.

 

Iran threat

After a string of foiled plots...

WASHINGTON – When America’s top intelligence official said that Iran’s regime is considering attacks on U.S. soil, he cited a single incident and qualified the assessment with a “probably.”

Intelligence and law enforcement experts, however, say that the Jan. 31 warning by the director of national intelligence, James Clapper, was likely based on more than the evidence he cited.

“I would be surprised to learn a statement like that was not backed up by intelligence,” said Mark Dubowitz, executive director of the Foundation for Defense of Democracies.

 

Iran threat

Locally, fear not but be alert

News reports notwithstanding, “There is no indication that there are any specific and/or imminent threats to Jewish communities in the U.S. at this time as a result of recent events,” according to an alert received this week by the Jewish Community Relations Council (JCRC) of the Jewish Federation of Northern New Jersey. Nevertheless, the alert said, that could change “should military action break out in the Middle East in coming months.”

An open attack on Iran is only one “trigger” that could raise the threat level, the alert said. “Increased pressure from sanctions, continued perceived threats from Israel, the United States, and others, sabotage against nuclear facilities, and continued alleged assassinations of Iranian nuclear scientists” could also bring about an Iranian response aimed at Jewish or Israeli targets in the West, especially the United States.

 
 
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