But while major foundations victimized by
Madoff start to plan for an uncertain future, one thing is certain:
this scheme might ruin countless smaller organizations that rely on
funding and grants from the bigger foundations Madoff has jeopardized.

Two such smaller organizations that may face future troubles from the Madoff scandal reside in Somerville.

Youthbuild
U.S.A. is a national non-profit organization dedicated to bettering
low-income communities by employing local youth in rebuilding and
renovating properties in their community. There are more than 225
Youthbuild centers and programs in the United States, including one
located in Somerville.

Founded in Harlem in 1978, Youthbuild
U.S.A., then called the Youth Action Program, began its mission by
using local youth to renovate East Harlem tenements. By the early
1990's, the program had been replicated in 14 cities and in 1994,
Youthbuild received their first federal grant of $40 million from the
US Department of Housing and Urban Development.

The continued
success and growth of Youthbuild U.S.A. relies on grants and donations
from major organizations, including JEHT – a major private funder of
Youthbuild, who has recently suspended all grants due to the Madoff
scandal.

JEHT, an acronym for Justice, Equality, Human Dignity
and Tolerance, was a philanthropic foundation established in 2000.
According to its website, JEHT's mission was to "support programs that
promoted reform of criminal and juvenile justice systems, ensured U.S.
adherence to international law, and work to improve the voting process."

This
mission statement has since been eclipsed by the Madoff Scandal. As of
January 2009, JEHT's loss of heavy investments entrusted to Bernard L.
Madoff investment securities, has forced JEHT to close its doors and
suspend all grant making.

In October of 2004 and December of
2006, JEHT made two-year grants to Youthbuild U.S.A. totaling $625,000.
How the suspension of any future grants towards Youthbuild U.S.A. will
affect the organization have yet to be announced.

Another
Somerville based organization that may soon feel the consequence of the
Madoff scandal is the Somerville Arts Council. Serving as the local
cultural council for the city of Somerville, the Somerville Arts
Council relies on the contributions of local businesses, corporation
and foundations to fund its various art programs.

Approximately 45% of the Arts Council's budget is derived from such sponsored donations.

One
such sponsor of the Somerville Arts Council is The Carl and Ruth
Shapiro Family Foundation, another philanthropic organization that has
fallen victim to the Madoff scandal.

With assets over $320
million, it is projected that the Shapiro Family Foundation may have
lost $145 million to Madoff. Carl and Ruth Shapiro have declined to
comment about their investments and close ties to Madoff. It has been
reported Carl Shapiro considered Madoff to be a friend.

The
foundation did release a statement explaining that the organization
would not be awarding any new grants or capitol pledges in 2009. But
the statement did say that the foundation will honor its current grant
commitments and that it remains "deeply committed to playing a
continued role as a philanthropic supporter of important programs in
Greater Boston."

The Carl and Ruth Shapiro Family Foundation
sponsor a Somerville Arts Council program – "Books of Hope," a creative
writing workshop for Somerville teens in which they write, edit and
publish original works.

The Shapiro Family Foundation has
promised to help sponsor "Books of Hope" from July 2008 to June 2009.
After that timeframe, the foundation will likely be unable to continue
its sponsorship.

How the small, Somerville-based organizations
like Youthbuild U.S.A. and the Somerville Arts Council will ultimately
be affected by the rippling consequences of Madoff's ponzi scheme is
unknown. Although their continuation is not directly threatened, if
future funding becomes scarce there may be an exodus of non-profit
Somerville organizations.

With a shaky economy causing most Americans to pinch pennies, the Madoff scandal could not have come to light at a worse time.

Madoff
was arrested on December 11th 2008, after admitting to his sons that
the asset management arm of his firm was "one big lie," based on
investment fraud. He is now living under house arrest awaiting his
indictment, which is expected to occur sometime this month.