By AMANDA HOFFMANN
While the most direct victims of the scheme, private and institutional investors bilked out of more than $50 billion, are still reeling, so too are local institutions that depend on the philanthropy of those clients. "Clearly, the JCC, like every other nonprofit, relies on philanthropic individuals," said Arnie Preminger, president and CEO of the Barry and Florence Friedberg Jewish Community Center in Oceanside. "How many of our donors are affected, we don't know."
Preminger said that the JCC's main concern is one it can measure: the economic downturn. "We don't want to add a burden on the community we serve by raising fees," Preminger said, "but state and grant dollars are much more tenuous than they have been in the past."
The problem, Preminger contended, is that the Madoff scandal -- coming in the midst of the economic downturn -- will have people tightening their belts at a time when they expect the demand for the center's services to increase. "It's almost like a perfect storm in many ways, because one thing leads to another and they converge," Preminger said. "We'll have people losing jobs and won't be able to provide more services to help those additional people because we won't have the dollars."
Some nonprofits are facing more than just the loss of donor money, because many have either invested directly through Madoff's firm, Bernard L. Madoff Investment Securities, or in funds that turned assets over to him.
A spokesperson for the United Jewish Appeal said, "The UJA-Federation as a community of donors is much deeper, broader and vibrant than a specific donor or foundation. Our strength is drawn from a greater body of tens of thousands of donors from many industries and walks of life throughout the Jewish community." The UJA-Federation provides services including counseling, food, shelter, rent and heat assistance, child care and vocational services through a network of more than 100 agencies.
In the private sector, the Madoff scandal is another factor in recent membership dips at country clubs in Nassau County. "This is just another reason why people will leave -- it's adding to the fire," said Peggy Caponi, who works in the office at Lawrence Village Country Club. "Prior to that, we all know how the economy was going. The bottom line is recreation is not a priority anymore."
Caponi, who lives in Cedarhurst, said the Madoff scheme hit home, with friends have had to cancel plans for things like cruises because of financial concerns. "It's nothing as drastic as people selling homes," she said. "I'm sure some people are, but I don't know any."
Joan Lepelstat, a member of the Lawrence Association, said she did not know anyone in the community who had been drastically affected by the swindle. "The whole thing is horrendous," she said. "I am sure it is devastating to many people. I just don't know anyone in our community directly affected. Most people don't talk about their finances."
Lepelstat said that the community has been nervous about the state of the economy, and the Madoff story would no doubt heighten people's concerns. "I would venture there are probably a few people in the area directly affected," Lepelstat said. "I know [Madoff] managed funds for Jewish philanthropic causes, and they've been hurt."
Recently the FBI set up a hotline for Madoff's victims, at (212) 384-2359. Web sites have also been set up to assist victims, including madoff.com, which is operated by a court-appointed receiver, and sipc.org, operated by a court-appointed trustee. Updates on the case against Madoff and information for victims is also available at usdoj.gov/usao/nys/madoff.html, and at sec.gov.
Jeff Greenfield, a Rockville Centre resident who owns a Lynbrook-based insurance business, said Jewish charity causes "are getting crushed." He described a recent fundraiser at which he remarked to a fellow attendee that he looked a bit under the weather. According to Greenfield, the man responded that no one would look good after losing several million dollars.
"There's a lot of Five Towns people that were hurt badly," Greenfield said. "It's widely reported that a number of Jewish clubs have lost members this weekend."
Greenfield, expressing his opinion that Madoff is "the most hated man," added, "The scandal was a tsunami on Jewish philanthropic causes. The ripple effect goes on and on and on."
Jeff Lipton contributed to this story. Comments about it? AHoffmann@liherald.com or (516) 569-4000 ext. 269.
