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Madoff Fall Out - Crisis Funding Package

Posted January 15th, 2009 by Gena Rotstein
in

Dexterity Consulting is offering a special package for charities affected by the Madoff scandal.

This special package includes:

  • Developing and implementing a crisis funding plan and coaching the organization's team through the process. 
  • Reviewing governance structures and working the Board of Directors to develop safe-guards around funds.
  • Developing SUSTAINABLE fundraising practices and coaching team in order to have ongoing successful campaigns.

For more information please contact Gena at info@dexterityconsulting.ca.

 

Message from Canadian Hadassah WIZO

Posted January 2nd, 2009 by Gena Rotstein
in
Dear Members, 
We know there may be some concerns about Hadassah WZOA’s (Women’s Zionist Organization of America) involvement and ensuing publicity re Madoff’s scheme.   
This is to state that Canadian Hadassah-WIZO is a separate legal entity from Hadassah WZOA.  We are affiliated with Hadassah International only.  As such, we have never held joint investments with Hadassah WZOA and have not been affected by Bernard Madoff’s Ponzi scheme in any way. 
Please find the text of the JTA article below. I rely on you to further disseminate this information as widely as possible to all our members, donors and friends.   
With best regards,
Terry 
Terry Schwarzfeld
National President, CHW
president@chw.ca

www.chw.ca

Source: JTA Breaking News, December 16, 2008

Hadassah says it lost $90 million in Madoff scandal

By Jacob Berkman · December 17, 2008

Hadassah, the Women's Zionist Organization of America, announced that it had lost $90 million with Bernard Madoff.

“We are currently in the process of investigating the exact amounts and their impact, but it appears that at the time of his arrest, Hadassah had approximately $90 million invested with his firm,” the organization said Wednesday in a statement. “Falling victim to this unprecedented fraud will require us to make necessary adjustments, but it has not in the slightest affected our commitment to our core Zionist mission. These are indeed turbulent times, but the key pillars of Hadassah remain as strong as ever.”

Madoff was one of more than two dozen firms with which its funds were invested, according to a source with knowledge of the situation.

This takes a sizable chunk out of Hadassah's endowment, which was believed to be worth around $500 million.

Hadassah was already facing tough times because of the current economic downfall, adopting cuts in its operating budget and expecting additional reductions in the coming months. The details of the yet-to-be-determined cuts are likely to become more clear following a board meeting in January.

“Now the Madoff situation compounds accelerates the matter,” said a source close to the situation.

A Hadassah spokesman said the losses connected to Madoff will Not affect the construction of a new tower at its main campus in Ein-Kerem in Israel.

The $210 million Hadassah Medical Center the Sarah Wetsman Davidson Tower was started with a $75 million gift from Detroit Piston’s owner William Davidson.  

Why Donors Stop Giving... A True Story

Posted January 1st, 2009 by Gena Rotstein
in
True story - I have a client; a small family foundation who wanted to make a donation to a medium-sized public foundation.  This family foundation offered up $30,000 a year for FIVE years, totalling $150,000.  The conversation began in September 2008 as of today (January 2nd) the recipient still has not made the transfer of funds possible. 

Several questions arise from this situation:
  1.  What is going on internally with this charity that they cannot come back with a response (yes or no) to accepting the donation?
  2.  Should the family take the offer off the table?
  3. Why would I even suggest putting an offer like this in front of an organization that does not have the capacity to manage the gift?
  4. How can this charity better manage the donation?
Read more »
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