From The New York Times
PALM BEACH, Fla. — The room of somber whispers fell silent when the two men walked in.
Just days after the collapse of Bernard L. Madoff’s suspected $50 billion Ponzi scheme, two of his emissaries returned to the epicenter of the financial disaster to face some of the hardest-hit investors, many of them old friends whom they had recruited to invest in Mr. Madoff’s firm.
As Carl J. Shapiro and Robert M. Jaffe sat down at the Men’s Grill of the Palm Beach Country Club they scanned an awkwardly quiet room, seemingly looking for friendly faces and reassuring nods.
The moment was a stark reversal for two men whom people used to trip over themselves to meet in hopes of a chance to invest with Mr. Madoff.
“You doing O.K.?” asked one of the several club members who approached the men in a show of support. “We’re here for you.”
While the fallout from Mr. Madoff’s suspected con game shook investors around the world, perhaps nowhere was there a higher concentration of victims than in this room. Investors were said to have paid hundreds of thousands of dollars a year to remain members of this club in hopes of an introduction to Mr. Madoff, usually by Mr. Jaffe or Mr. Shapiro. Mr. Madoff has been a member since 1996.
But more than wealth, these people seemed to have lost a sense of trust and prestige. During a visit to the club on Saturday, many members, asked for their reactions, requested not to be named because they did not want to ruin their standing among friends.
In Mr. Madoff’s fall, their world turned upside down, they said. Those who prided themselves as financially savvy suddenly seemed gullible. The trusted friend, sage adviser and model philanthropist they thought they knew was now charged with being a multibillion-dollar swindler.
Continue reading here: http://www.nytimes.com/2008/12/15/business/15palm.html?_r=2&sq=madoff&st=cse&scp=9&pagewanted=print
Tuesday, December 16, 2008
Monday, December 15, 2008
"BACK TO BASICS"
While the United States government wrangles with issues of auto industry bailouts, I have been holding my breath that nonprofits sector would not be further damaged by the economic downturn. My battle cry has been, "the sky is not falling." Today, all that changed…
Fox News reports, "Investors struggled Friday to understand how a former Nasdaq stock market chairman could hide losses of at least $50 billion in what he allegedly called "a giant Ponzi scheme." Bernard L. Madoff, 70, was arrested on a securities fraud charges. Stephen A. Weiss, a lawyer for several dozen investors, said, "he personally spoke to 30 investors" who are believed to have invested more than $ 1 million with Mr. Madoff.
The impact on philanthropy cannot be minimized. Bernard Madoff had a personal connection with Yeshiva University; federal authorities are investigating the Yeshiva endowment accounts. Additional investors include: Ellie Wiesel Foundation for Humanity; Boston's Carl Shapiro's Charitable Foundation; Julian J. Levitt Foundation; Mort Zuckerman's Charitable Trust; Norman Braman (Florida's major philanthropist lost $300 million); North Shore-Long Island Jewish Health System; Robert I. Lappin Charitable Foundation; Steven Spielberg's Wunderkinder Foundation, and U.S. Senator Frank Lautenberg's Charitable Foundation. It is a growing list where individuals and nonprofit endowments have lost millions and millions of dollars.
Add to the list the countless investors in the Royal Bank of Scotland, the Royal Bank of Canada, as well as the other two dozen or more investment portfolios that were placed with Madoff.
My colleagues are reporting that donors who have made 2008 charitable gifts to major Jewish organizations are asking for their checks to be returned if they have not yet been cashed.
What have we learned from this?
I would think that United Senator Frank Lautenberg will be leading the charge on Hedge Fund regulation. Don't you? Hedge funds were among the main victims here, along with well-heeled individual investors, nonprofit endowment funds and foreign financial companies. The rich and famous went into this blindly…and the worthy charities that they support are the sad victims.
He pulled this off despite market supervision and allegedly was turned in by his own sons.
What does the future hold for Jewish philanthropy in 2009?
I would think that major and principal gifts from Jewish philanthropists are going to be scarce well into 2010, or maybe longer. This is a "game changer" for Jewish philanthropies. Those of us in the Jewish fundraising world are often called the "little darlings" and the envy of our secular fundraising colleagues. We have raised millions and millions of dollars for worthy Jewish causes here and abroad. Our mantra has been that major and principal gifts are easier to acquire…after all, it is measurably easier to raise $100,000 at lunch than ask 10,000 people for $10.00. We thought the leaders in Jewish philanthropy were savvy investors, but even they were misled.
Good bye major and principal gift fundraising……..Hello Grassroots!
Back to Basics We go! Get out your grassroots fundraising guide, look into life income plans for donors, invest in direct mail and extend your reach using the new Internet modalities commonly known as Viral Internet Marketing……
More importantly, should we be asking for a government bailout to those struggling agencies who give so much to the community and are now facing closure? Our seniors, our youth, our orchestras, our community centers and our food pantries deserve better than this.
Fox News reports, "Investors struggled Friday to understand how a former Nasdaq stock market chairman could hide losses of at least $50 billion in what he allegedly called "a giant Ponzi scheme." Bernard L. Madoff, 70, was arrested on a securities fraud charges. Stephen A. Weiss, a lawyer for several dozen investors, said, "he personally spoke to 30 investors" who are believed to have invested more than $ 1 million with Mr. Madoff.
The impact on philanthropy cannot be minimized. Bernard Madoff had a personal connection with Yeshiva University; federal authorities are investigating the Yeshiva endowment accounts. Additional investors include: Ellie Wiesel Foundation for Humanity; Boston's Carl Shapiro's Charitable Foundation; Julian J. Levitt Foundation; Mort Zuckerman's Charitable Trust; Norman Braman (Florida's major philanthropist lost $300 million); North Shore-Long Island Jewish Health System; Robert I. Lappin Charitable Foundation; Steven Spielberg's Wunderkinder Foundation, and U.S. Senator Frank Lautenberg's Charitable Foundation. It is a growing list where individuals and nonprofit endowments have lost millions and millions of dollars.
Add to the list the countless investors in the Royal Bank of Scotland, the Royal Bank of Canada, as well as the other two dozen or more investment portfolios that were placed with Madoff.
My colleagues are reporting that donors who have made 2008 charitable gifts to major Jewish organizations are asking for their checks to be returned if they have not yet been cashed.
What have we learned from this?
I would think that United Senator Frank Lautenberg will be leading the charge on Hedge Fund regulation. Don't you? Hedge funds were among the main victims here, along with well-heeled individual investors, nonprofit endowment funds and foreign financial companies. The rich and famous went into this blindly…and the worthy charities that they support are the sad victims.
He pulled this off despite market supervision and allegedly was turned in by his own sons.
What does the future hold for Jewish philanthropy in 2009?
I would think that major and principal gifts from Jewish philanthropists are going to be scarce well into 2010, or maybe longer. This is a "game changer" for Jewish philanthropies. Those of us in the Jewish fundraising world are often called the "little darlings" and the envy of our secular fundraising colleagues. We have raised millions and millions of dollars for worthy Jewish causes here and abroad. Our mantra has been that major and principal gifts are easier to acquire…after all, it is measurably easier to raise $100,000 at lunch than ask 10,000 people for $10.00. We thought the leaders in Jewish philanthropy were savvy investors, but even they were misled.
Good bye major and principal gift fundraising……..Hello Grassroots!
Back to Basics We go! Get out your grassroots fundraising guide, look into life income plans for donors, invest in direct mail and extend your reach using the new Internet modalities commonly known as Viral Internet Marketing……
More importantly, should we be asking for a government bailout to those struggling agencies who give so much to the community and are now facing closure? Our seniors, our youth, our orchestras, our community centers and our food pantries deserve better than this.
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