American Jewish Congress(AJC) Crippled by Madoff Scandal

[Purveyor]

One of the Jewish community’s most storied national organizations revealed that it has been gutted by the financial collapse of investor Bernard Madoff, losing the vast majority of its endowment.

Officials at the 90-year-old American Jewish Congress disclosed that apparent fraud at Madoff’s investment firm had cost the organization roughly $21 million of the $24 million in endowments that supported the AJCongress and its programs. Those endowments funded roughly one-fourth of the organization’s budget which, in 2006, was $6.2 million. In the wake of the losses, the AJCongress already has commenced staff firings and the slashing of programs, but its leaders have vowed to press on.

“It’s a serious blow,” said Marc Stern, the AJCongress’s acting co-executive director. “It’s not fatal. And we’re regrouping and going to rebuild the organization. But I wouldn’t deny that it’s a serious blow.”

The losses are particularly damaging given that, by many accounts, the organization has struggled to sustain its funding and to establish a clear identity in the Jewish communal world. Some observers predicted that this latest catastrophe could be fatal.

“Congress has been hanging on for a long time, and sadly, with the loss of its endowment, I suspect it’s not going to be able to hang on anymore,” said Jonathan Sarna, a professor of American Jewish history at Brandeis University.

MORE...

THE FORWARD: http://www.forward.com/articles/14905/

[no_hypocrisy]

1. Why couldn't it have been AIPAC?

There is no God . . .

[FLAprogressive]

4. that would have been sweet

[rockymountaindem]

2. I just can't believe how many Jewish organizations invested in the same guy

He obviously targeted their sympathies for doing business with a fellow member of the tribe. Hopefully other people will step up and prevent all these groups from failing.

[KoKo]

3. I think this is a PLEA for small investors to stand up and cough up some money to save them!

After all, we are seeing that the numbers of organizations reporting going down with Madoff don't list the "principal investment" as the loss...but what Madoff "tacked onto the Principal" showing they had made huge profits year over year.

I do think that Charities that lost with Madoff are going to need some immediate funding, though.

[Ichingcarpenter]

5. I looked at their site

and their stand on Gaza. ( no comment) on that stand

But it Seems they got hoodwinked by a guy that was warned about in SEC filings
and by the Credit Swiss years ago.