Like many others involved in the Jewish communal world, we've been pre-occupied these past two weeks with the Madoff scheme and the resulting fall-out. Among other things, this has caused us to reduce posting on other subjects. At least for "new news" hopefully the worst is behind us and we can begin the process of picking up the pieces. Taken together with the losses in the capital markets earlier this year, the past several months have not been easy on the entire philanthropic world. One of the areas we intend to begin speaking about is the effect of the recession on fundraising. We began collecting both articles and research earlier in December to share with you - and plan to begin this week. To paraphrase a colleague with a similar agenda, the purpose will be to speak about what is happening … Continue Reading
How The Madoff Scandal Affects Philanthropy
The following is a press release from American Friends of ALYN Hospital: Implications of Madoff Fraud on Philanthropic Community NEW YORK, NY, December 23, 2008: Cathy Lanyard, Executive Director of American Friends of ALYN Hospital, a non-profit organization, held a press conference today to discuss the "Implications of Bernard Madoff on Fundraising and Non-Profit Organizations." Madoff's alleged $50 billion Wall Street fraud, one of the largest in U.S. history, has devastated non-profit organizations across the United States, particularly Jewish charities. Coping with pain and anger after disclosure of the alleged multibillion-dollar Ponzi scheme, charities are feeling the affects of distrust and betrayal. The Madoff fraud should serve as an enormous wakeup call to all charities to … Continue Reading
Madoff Fallout: Rethinking Begins
Lucette Lagnado writing in Friday's Wall Street Journal: When the Big Spenders Fail, Who Will Save Jewish Charity? The Madoff scandal has shaken the American Jewish community to its core -- maiming institutions large and small, wiping out life savings and triggering soul-searching: How could one man deceive so many? And what does the affair say about American Jewish values? The pain is being felt especially intensely in philanthropic circles, which may never fully recover. David Suissa in The Huffington Post: Madoff's Redemption If you're an active member of the Jewish community -- and perhaps even if you're not -- there's almost no way to properly digest the Bernie Madoff scandal.... More than dry numbers, though, there's the sadness we all feel for the tens of thousands of … Continue Reading
A Solid Crisis Plan is Your Lifeline
The collapse in December 2008 of Bernard Madoff’s investment company – and the unprecedented damage and destruction a number of foundations suffered in its wake – not only rattled the philanthropic sector, but left many organizations scrambling to answer unexpected (and unwanted) questions from the news media, donors and others. One of the stark lessons from this upheaval is that your organization always should have a current crisis communications plan in place. by Douglas Gould and Jennifer Hahn: Crisis or Bad News: A solid Crisis Plan is Your Lifeline The financial crisis of 2008 roiled the nonprofit community, inflicting lasting damage on thousands of organizations and causing them to seek cover. But then just as the year was coming to a close, a scandal of gargantuan proportions … Continue Reading
Ignorance Was Bliss
It's hard not to be mesmerized by the unfolding affair of Bernard Madoff, not to be in awe of how one individual kept such a gigantic fraud going over a period of decades. Those of us who monitor the allocation of valuable philanthropic dollars are bemoaning the funds that were lost by Madoff's betrayal of trust, and wondering where the funding will come from to maintain programs that were supported by donors and foundations that invested with him. It will take months, if not years, to fully understand how the Securities and Exchange Commission and other regulatory bodies failed to heed the warning signs. And it may never be possible to gauge the full impact on nonprofit organizations that provide educational, health and other human services. Some will immediately cut back or close, but less … Continue Reading
The Future of Family Foundations
This is a must read article for everyone connected to the world of Jewish philanthropy - here are some excerpts from this morning's Jerusalem Post: Analysis: Why federations were less vulnerable to Madoff than family foundations It appears that the most devastating damage in the Jewish community may have been sustained by the rapidly expanding sector of private foundations. The nimble and focused family foundation has been widely acclaimed for two decades as the future of American Jewish communal governance, adding untold funds and energy to communal life. Some have even suggested the private foundations could supplant the system of large communal federations - many of these over 100 years old - that tend to value long-term planning and major charitable infrastructures. Some strong … Continue Reading
What’s There to Learn From the Madoff Case?
We suggest you check out the cover story from this week's The Baltimore Jewish Times: Shaken at the Foundations “What Is Happening To Us?” asks Rabbi Mark G. Loeb, rabbi emeritus of Pikesville’s Beth El Congregation. “I remember a time, seemingly not so long ago, that the Jewish community seemed to be one of those places where intellectual judgment, good sense, personal dignity and ethical sensitivity were our essential hallmarks as a people,” he said. “Sadly, some of those ideals seem to have fallen by the wayside, at least in the life of significant Jewish individuals, or have been brushed under a moral carpet by too many people who always worry more about what non-Jews will say or do instead of being concerned what harm we are doing to ourselves.” … Continue Reading
In Other News
from The Baltimore Jewish Times: National Leader Discusses Jewish Needs Straight talk from Jewish Agency Board Chair Richie Pearlstone about pitting funds for local vs. international Jewish needs. from The Jerusalem Post: Peres to establish Jewish youth forum President Shimon Peres is looking to establish a forum within Beit Hanassi that will bring together young leaders from throughout the Jewish world to grapple with the questions facing the Jewish people as a whole... … Continue Reading
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