The collapse of Bernard L. Madoff Investment Securities on December 11 and the defrauding of nonprofit entity investors to the tune of $50 billion have shocked the nonprofit and philanthropic communities. The scandal involving investments entrusted to Bernard Madoff has caused foundations to discontinue operations, with Swiss banks, prominent billionaires, asset management companies and wealthy retirees losing billions. A few nonprofits have lost virtually all their assets to what authorities describe as a Ponzi scheme that depended on new investment money to pay off on earlier investments. Charities that depended on those foundations for financing, like the Innocence Project and the UJA Federation, and wealthy donors like Norman Braman, Mort Zuckerman and J. Ezra Merkin, have had their fundraising results damaged. Some foundations had placed their money with Mr. Madoff directly; others had invested with funds that turned assets over to him; and some nonprofits had relied on a steady stream of money from donors who themselves have been hurt by Madoff. Among those affected are The Elie Wiesel Foundation for Humanity, the Ramaz School, Yeshiva University (which lost more than $100 million on investments in Madoff’s funds), the Jewish Federation of Greater Washington (losing about eight percent of its endowment), Steven Spielberg’s Wunderkinder Foundation (which supports organizations like the Cedars-Sinai Medical Center and Chabad’s Children of Chernobyl), and the Chais Family Foundation in Encino, California.