Sunday, December 14, 2008

Jewish Philanthroy to Be Hit As Result of Madoff Fraud

Not being mentioned much in the press is the impact on Jewish giving that the Bernard Madoff ponzi scheme will have. All you have to do is read the names of some of the victims to see that Jewish philanthropy is going to be smacked due to the fraud.

The Wall Street Journal online says: "During golf-course and cocktail-party banter, Mr. Madoff's name frequently surfaced as a money manager who could consistently deliver high returns. Older, Jewish investors called Mr. Madoff " 'the Jewish bond,' " says Ken Phillips, head of a Boulder, Colo., investment firm. "It paid 8% to 12%, every year, no matter what."

The article continues, " Mr. Madoff handled investments for the Judy & Fred Wilpon Family Foundation, which distributed about $1 million a year in 2005 and 2006 to charities, according to its most recent federal tax returns."

The fallout from this scandal is going to be far reaching, and unfortunately for Jewish organizations who are already reeling from a slow global economy, this is another nail in their fundraising coffin.


Dan said...

You can see a preliminary list of Jewish charities taking a 'hit' here:

Aaron Katsman said...

Dan, thanks for the list. I hate to say it but this list is going to be longer