Touching the world of Jewish philanthropy, here are a few items appearing on other Web sites you may find of interest.

A story in the Los Angles Jewish Journal suggests responsible board members should resign in the wake of the Madoff scandal. Here’s the link and an excerpt:

Anger replaces shock as Madoff scam puts spotlight on charity boards

“Anger has begun to supplant shock as those who contribute to prominent Jewish charities or work on their behalf gasp for comprehension of the unprecedented percussion that the Bernard L. Madoff investment fraud is having on their favorite causes.

At least one governance expert, James Kristie, editor of Directors & Boards magazine, says that more board-level resignations are in order.

“You don’t see board members resigning when a bad situation happens. I think there is something wrong with that,” Kristie said. “It is not usually a single board member who has contributed to a bad situation.”

The New York Jewish Week is reporting that for the first time, UJA-Federation of New York will provide scholarship money to Jewish day school students.

Fortune Magazine, in a story titled Charities: the foundation of Madoff’s scheme?, suggests why Madoff may have targeted the foundation world:

“Some observers have theorized that Madoff’s apparent soft spot for foundations was a ploy to instill confidence in private investors. (”Look at all the good work he does for such fine groups!”) That might be true, but it overlooks a simple fact that makes foundations ripe targets for a Ponzi schemer: the 5% payout rule.”

And lastly, Fox News is reporting that Madonna gave $2.6 million to the Kabbalah Center of Los Angeles in 2007. With total contributions of $3.1 million, the Kabbalah Center was the prime beneficiary of Madonna’s giving.

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As we close out 2008 and look toward 2009 with both hopefulness and a touch of apprehension given all the challenges before us, here are a few resolutions that might just give your Jewish organization’s marketing better focus in the year ahead.

1. Spend 20 minutes every week in total quiet thinking about one thing you alone can do to improve your message.
2. Speak with 3 different people weekly who are connected to your organization and ask for their perspective on one marketing idea you have. Be sure to include junior staff and younger volunteers.
3. Spend time each week trawling the web for out of the box ideas—give one of them a try within 3 months.
4. Draw (or have someone with some artistic talent do this for you) a picture of your ideal supporter. No, really, do this. Below the drawing, list 6 attributes about this fictional person (lifestyle, marital status, income level, interests, etc.) and then post the drawing above your computer. Name the fictional supporter and speak to him/her every time you or one of your staff writes something targeted to them.
5. Draw a big circle and around the edge of it, list all the types of people who make up your Jewish community (by ethnic background, religious affiliation, sexual orientation, marital status, age, wealth, etc.) Draw a smaller circle inside the larger circle; draw lines from the listed groups on the larger circle pointed to the inner circle that are part of your organization today. Note where there are disconnects and ask yourself if: a) these people should be part of your organization and, b) if so, what you can/should do to engage them.
6. Review your organizational mission statement with your top leadership team; see if it still resonates and if your communications support it.
7. In this tough environment, look for 3 things you can do to reduce costs and still maintain or improve communications performance levels. Then communicate your success!
8. Ask yourself: “What can I measure? How can I measure it? Who can help me measure it? What cannot be measured and why?” Then set up a way to routinely communicate your performance.
9. Informally survey 10 people in your organization asking them what organizations they most admire and why. Ask them how you stand up next to them. Work to improve your standing.
10. Instead of emailing someone in your organization about a need, drop by instead and use the opportunity to listen to someone’s point of view.
11. Look at the Jewish calendar and make sure you have plans to fully leverage your messaging against important and meaningful Jewish moments.
12. When creating marketing opportunities, remind yourself to think about approaches that engage your target audience through tangential messages that matter to them—like their young children; the environment; human justice issues.
13. Try something new at least 6 times this year and don’t let someone dissuade you from doing it. Expect some failure. Anticipate some learning. Share it.
14. Volunteer outside your organization and share the experience with your team.
15. Remind yourself to routinely look to Israel for inspirational ideas that can inform your work.
16. Celebrate Jewish food, culture, music, art, dance, and literature within your week and with your colleagues. It will inspire you and your messaging.
17. Visit with an elderly Jew and ask them to tell you about their life.
18. Think about what community means in your organization and locale. Find ways to strengthen it.

Gail Hyman is a marketing and communications professional, with deep experience in both the public and private sectors. She currently focuses her practice, Gail Hyman Consulting, on assisting Jewish nonprofit organizations increase their ranks of supporters and better leverage their communications in the Web 2.0 environment. Gail is a regular contributor to eJewish Philanthropy.

If you think Gail has some good ideas - and we do - forward the post around, add a link on internal list-servs and more.

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All non-profit organizations aspire to achieve financial security, and they are certainly highly motivated when the economic situation both in Israel and in Jewish communities around the world is very strong. When foundations, donors and lay leaders have more money to contribute then non-profit organizations benefit from their passion, their enthusiasm for issues, their desire to make a difference and from their generosity. In times like the present there are more pressures both on the funding sources and on the recipients to find ways to insure the functioning of valued social, educational, and human services.

Organizations are presently dealing with actual and anticipated decreases in income and the subsequent budget cuts that accompany these changes. The struggle is now focused on developing approaches to sustaining core services. It is important to be creative and strategic in communicating with present supporters and reaching out to new sources of funding, as well as in reviewing administrative costs and practices.

Although there is mounting pressure on completing the present fiscal year, whether the organization is on a calendar year budget (January to December) or fiscal year budget (July to June), it is essential to also focus on the future. Simultaneously organizations have to look at the next 2 or 3 years and have contingency plans available so they can implement what needs to be done in the short run.

This means the professional staff and the lay leaders need to work together through the organization’s volunteer board of directors, and the appropriate board committees so there is support to implement changes when necessary. Now is the time to garner the strength of the board and their commitment not only in financial terms but also in their demonstrating leadership in being accountable for the continuity of the agency’s functioning. Organizations focusing on strengthening themselves will have a better chance at sustaining themselves during challenging times.

Stephen G. Donshik, D.S.W. is a lecturer at Hebrew University’s International Leadership and Philanthropy Program and has a private consulting firm focused on strengthening non-profit organizations and their leadership for tomorrow. Stephen is a regular contributor to eJewish Philanthropy.

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It’s all in the spin…

According to Bloomberg, Yeshiva University said its previously reported profits in a fund tied to Bernard Madoff were ‘fictitious,’ underscoring how customers of the money manager may have been misled about the investment gains they had amassed.

The school said it had a net investment of $14.5 million tied to Madoff as of Dec. 11, the day he was arrested, according to an e-mail today from J. Michael Gower, the New York school’s vice president for business affairs and chief financial officer. Yeshiva said a financial statement from Ascot Partners, which fed to Madoff, valued the investment at $110 million as of Dec. 16.

“Although the university has an estimated loss of approximately $110 million, it now appears that any ‘profits’ above the $14.5 million were fictitious,” Gower said in the statement.

Here’s the link:

Yeshiva’s Madoff Losses Based on ‘Fictitious’ Profits (Update2)

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With Jewish Agency Chairman Ze’ev Bielski’s expected election to the Knesset in February, JAFI will be looking for a new head - and apparently the search has begun.

Haviv Retting reports in today’s Jerusalem Post that former UN ambassador Danny Gillerman has turned down a request to run for the position and that the list of those being considered are not the politico names you may have expected.

Here’s the link:

Gillerman turns down offer of Jewish Agency chairmanship.

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There must be a lot more trouble at Hadassah than meets the eye - it seems Hadassah is planning to sell off some of its assets here in Israel. One of the properties likely to be put on the block is the brand new Young Judaea youth hostel in Jerusalem’s Givat Massuah (near the Malcha Mall) - valued at NIS 70 million the building stands on a 3.1-acre plot and opened in 2006.

Among other uses, the complex is used for Young Judaea’s year course program and WUJS Israel Jerusalem.

A senior Hadassah source said the decision to sell the guest house was made before the Madoff fraud was revealed.

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The Jewish Foundation of Greater Toronto took a $486,000 (Cdn) hit as a result of an investment that was indirectly linked to Bernard Madoff. The loss represents .26 per cent of the foundation’s total assets.

“Although any loss is regrettable, and we are by no means minimizing its significance, our exposure is very small compared to other individuals and organizations,” said Howard English, vice-president of corporate communications for UJA Federation of Greater Toronto. “On any given day, considering the size of Jewish Foundation assets and the amount that we invest, market fluctuations of $486,000 either up or down, would not be unusual. In other words, when market conditions are good, we can just as easily make $486,000.”

The nearly half a million dollars is the income that would be generated by a $5.4 million (Cdn) investment in a fund of funds, which included an investment managed by Madoff. However, according to English, the foundation’s investment advisors are not yet prepared to write off the $5.4 million investment that produced the $486,000 return.

“We believe the $5 million is recoverable. We hired an investment consultant who is looking into it, and he believes there is a good chance it is recoverable,” he said.

We’re not sure if Toronto’s loss is part of the seven mentioned by the UJC’s Howard Rieger last week or if this is number eight. We do know there are still many federation’s who have not yet officially commented on possible exposure.

On an upbeat note, as of today and with two months to go, the Toronto Federation’s annual campaign is running slightly ahead of this time last year.

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a guest post by Rabbi Stewart Weiss:

As the story goes, several years ago a down-and-out man approached Albert Reichman - he of the billionaire philanthropist brothers - and asked him for a loan of $1,000. “All right,” said Reichman, “I am prepared to loan you the money. But when will you pay it back?” The man looked at Reichman and thought for a moment, then replied, with a straight face, “I’ll tell you what, Mr. Reichman. When you’ll need the thousand, call me!” Considering the latest news, it just may be time to make that call.

The Madoff (”with my money”) scandal is the latest tremor to shake the financial world, part of a triple whammy that has lambasted the American economy. First, the dollar plunged to record lows against world currencies, including the shekel; then the economic tsunami hit, washing away vast sums of money invested in stocks and real estate; and now this latest revelation that billions of Jewish dollars invested with Madoff’s firm have disappeared into thin air.

Hundreds of individual Jewish philanthropists and communal charities and foundations have been hit hard. These include J. Ezra Merkin, who may have lost in excess of $1 billion; Yeshiva University, which lost $110 million; Hadassah, which lost $90 million; the Elie Wiesel Foundation, which lost $40 million; the Los Angeles Jewish federation, the American Jewish Congress, Yad Sarah and on and on.

While Madoff is free on bail and has been fitted with a monitoring ankle bracelet, many of the rich and famous may be looking into pawning their own tennis bracelets.

Out in the Jewish professional world, fund-raisers and executives are wringing their hands, wondering where next year’s budgets will come from, even as Jewish schools contemplate cutting scholarships and soup kitchens go on a diet.

But there may be a silver lining behind this dark cloud. Perhaps we will now be forced to perform major tzedaka triage and take a long, hard look at where our hard-earned charity money is going.

(more…)

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by Mal Warwick

Practically everybody in the nonprofit sector is talking about the impact of the fast-spreading worldwide recession on fundraising. There has been a flood of articles, workshops, lectures, blogs, and other commentaries on the topic in recent months. Most of it, in my humble opinion, is little more than opinion-mongering.

To weigh in with a logical analysis and some practical suggestions, my colleague Dan Doyle, CEO of Mal Warwick Associates, and I have written a new paper called “Fundraising in Tough Times”. This analysis takes an unorthodox approach to the topic and includes some advice that many people in the direct marketing field will probably think is heretical.

If you want a fresh perspective, read on. We’re not just going to drown you in statistics or regurgitate the familiar advice you’ve read elsewhere.

(more…)

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James Besser writing for the New York Jewish Week:

For months, I’ve been struck by a kind of whistling-past-the-graveyard attitude from Jewish leaders.

Sure, times are tough right now, they keep saying, but that’s the nature of the economy: there are ups and downs, but this is America, after all, and it won’t take long to get our economy back on track.

More and more, that attitude looks like wishful thinking…

Denial may keep our community’s leaders from doing the things they need to do to keep their organizations afloat – and to keep them providing critical services at a time when demand is already soaring.

Read the complete post in the JW Political Insider.

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