Jewish Funders Network's Crisis Loan Fund to Help Nonprofits Hurt by Madoff Ponzi Scheme
The Jewish Funders Network announced today the launch of a Crisis Loan Fund to assist nonprofits harmed by the Madoff Ponzi scheme. With an initial pool of $5 million, The Crisis Loan Fund will provide bridge financing and interest subsidies to eligible 501(c)(3) nonprofits facing budget shortfalls as a result of the scheme. The fund was created through a collaboration of JFN members. JFN has also launched a Pro Bono Resource Bank that offers consulting services to nonprofits who are struggling in this down economy.
“The Crisis Loan Fund represents an immediate first step to aid nonprofits who are already scrambling to meet increased demand with rapidly diminished resources,” said JFN President, Mark Charendoff, “it’s our hope that philanthropists will join with JFN to continue to meet the demand in the months to come.”
Created in response to requests for assistance from nonprofits reeling from the fraudulent management of assets related to the Madoff scheme, the Crisis Loan Fund will address funding gaps caused by the scheme and made worse by current credit crisis.
Loans of $100,000 to $300,000 that can be used toward operating and program costs will be awarded based on several criteria including the strategic impact of the loan on the organization or its programs and the organization’s ability to repay the loan. Applicants must also demonstrate that they were negatively impacted by Madoff-related investments.
“This fund is a collaborative effort created by a group of Jewish philanthropists to help nonprofits affected by Madoff regardless of religious or political affiliation,” said Jeff Solomon, President of the Andrea and Charles Bronfman Philanthropies, ”It’s a unique opportunity for the global philanthropic community to come together to help shore up these struggling charities.”
The JFN Pro Bono Resource Bank will offer consulting services to struggling nonprofits. Managerial, legal, accounting, development and other resources will be made available to them by JFN’s member foundations and individual donors as well as other partner organizations.