JTA: The Global News Service of the Jewish People

Loose change: More on Madoff, shortfall in Denver, scholarships at day schools

By Jacob Berkman · January 2, 2009

There is still plenty of Bernie Madoff news to report, but the Jewish papers have started to shift back to coverage of the effects of the general financial crisis -- and specifically to a growing need for scholarships at Jewish day schools. The story out of Denver is a must-read:

• The Allied Jewish Federation in Denver, which by the end of December usually has collected 88 percent of the money it has been pledged during the course of the year, estimates that this year it may collect only 75 percent to 80 percent, causing a significant shortfall, according to the Intermountain Jewish News. The federation is expecting to lay off staff, and its CEO has taken a voluntary cut in pay.
• Shock at the Madoff scheme has turned to anger, as donors lash out at nonprofit board members, according to the L.A. Jewish Journal.
• Some philanthropy observers are calling for the Jewish nonprofit community to wean itself from heavy reliance on mega-donors in the post-Madoff era, according to the Forward.
• The United Jewish Endowment Fund in Washington has established two committees to review organization-wide investment policies and examine how the fund came to invest with Bernard Madoff, according to the Washington Jewish Week.
• Though some of their donors may have been hurt, Jewish agencies in north-central New Jersey feel that they dodged the Madoff bullet with good governance and proper due diligence, reports the New Jersey Jewish News.
• Yossi Prager, the executive director of the Avi Chai Foundation, talks to the New Jersey Jewish Standard about giving during the recession. The Jewish community in northern New Jersey is holding a monthlong learning program to discuss charity.
• The Helen Bader Foundation in Milwaukee will give $1.5 million over the next three years to help lower- and middle-income families afford Jewish day schools, according to the Wisconsin Jewish Chronicle.
• The UJA-Federation of New York allocated $1 million in scholarships to day schools and yeshivas in New York, according to the N.Y. Jewish Week.
• The Jewish Community Endowment Fund in San Francisco gave $50,000 to help give scholarships to day school students.
• The Jewish community in Baltimore is bracing for escalation of the war in Gaza, reports the Baltimore Jewish Times.
• The St. Louis Jewish community is adopting the Harold Greenspoon foundation’s Bnai Tzedek project, which teaches youth philanthropy by giving bar mitzvah aged children matching grants for their philanthropic endeavors, according to the St. Louis Jewish Light.
• A historic synagogue in Philadelphia received an $80,000 matching grant for restoration, according to the Philadelphia Jewish Exponent.

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The Jewish federation in Tornoto lost $500,000 in Madoff scheme

By Jacob Berkman · January 2, 2009

The Jewish Federation of Greater Toronto lost about $500,000 from its $200 million endowment, in Bernard Madoff's Ponzi scheme, according to the Associated Press.

The federation sent the following letter to its donors Wednesday, explaining the details of the loss:

You may have seen or heard news reports today about a connection between the Bernard Madoff situation and UJA Federation. We are writing to provide you with the facts involved.

• The alleged Madoff fraud has no impact whatsoever on the Annual Campaign, on money donated to the Annual Campaign or on the use of United Jewish Appeal Annual Campaign funds to meet community needs.

• The Madoff affair has had a small impact on the Jewish Foundation of Greater Toronto, which houses approximately $200 million in endowment funds. Unfortunately, through one of our fund of fund managers, the Foundation experienced a small exposure to the alleged Bernard Madoff fraud,   representing 0.26% or $486,000 of the total Foundation assets. Any other figures that have appeared in media reports are mistaken and inaccurate.

• We regard any loss, no matter how small a proportion of assets it represents, as regrettable. We take these circumstances very seriously and we will be even more rigorous in practicing prudent investment strategies, through our experienced fund managers who strategically invest Foundation assets to diversify risk and maximize returns.

• The Jewish Foundation Investment Committee and Board of Trustees – all lay people – who oversee Foundation operations - include some of the most respected investment specialists in the country. They insist on the highest standards of diligence and integrity.

If you have any questions, please contact Howard English at henglish@ujafed.org .

Wishing you the best in 2009,
Ted Sokolsky, President & CEO
UJA Federation of Greater Toronto
 

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