December 29, 2008 | Read Time: 2 minutes
Should donors help the nonprofit victims of Bernard Madoff’s alleged Ponzi scheme?
A new Web site, titled They Need Us Now, has been set up to raise money for charities that have been hurt financially because donors who supported them lost major investments with Mr. Madoff.
Lucy Bernholz, a philanthropy consultant, praises the effort, though she cautions that it’s unclear who is operating it.
“It is a great idea, I hope it is legit. It was also put together fast – the Madoff scandal only came to light 10 days ago,” she writes on her blog, Philanthropy 2173.
About three dozen large Jewish foundations have also joined together to aid Mr. Madoff’s victims, many whom were Jewish nonprofit groups, reports The Washington Post.
But Bob McInnis, executive director of an anti-hunger group in Calgary, Canada, questions whether the nonprofit world should be rushing to aid the nonprofit groups that invested with Mr. Madoff.
“While I appreciate the good works of these organizations, I am concerned about their ability to steward resources entrusted to them,” he says in response to Ms. Bernholz on her blog.
“Before we (I) sink good money after good money into any of these charities, I would want to understand how they were induced into a ponzi scheme and what culpability they should accept,” he says. “To draw focus away from other well-managed and diligent organizations who were more prudent is an even greater catastrophe.”
Indeed, Connecticut’s attorney general is examining whether board members of charities in the state shirked their fiduciary responsibility to protect charitable assets by placing investments with Mr. Madoff or other funds that invested with him, reports The Chronicle.
What do you think? Should donors support the charities hurt by Mr. Madoff? Click on the comments link below to share your thoughts.
