Charities Hurt in Fraud

As if things weren't looking dark enough in a world where parents are naming their kids after Nazis, we now learn that last week's arrest of Investment Manager Bernard Madoff, who was charged with operating a ponzi scheme that could end up costing investors upwards of $50 billion (yes, that's a b), is having a devastating effect on charities across the country. The Wall St. Journal reports (subscription needed) that Jewish charities are being hit especially hard:

Mr. Madoff was a central player in Manhattan's close-knit world of Jewish charities, serving both as a direct contributor and portfolio manager for individual foundations. Many of his clients are also a main funding source for charities, acting as the key donors who provide large checks necessary to keep them running.

"In the Jewish world, we've just taken a major, central player, and introduced fear and uncertainty all over the system. It's like finding out your brother is a murderer" said Gary Tobin, president of the Institute for Jewish and Community Research, which studies Jewish philanthropy. Dr. Tobin estimated the total amount of such giving in the U.S. to be as much as $5 billion annually.

In the most extreme cases, organizations affected by the alleged fraud are closing their doors.

NPR also gives an overview of the devastation.