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Op-Ed: Why Donors Like Chabad


This past weekend saw two mammoth Jewish gatherings take place. The first was the General Assembly for the Jewish Federations of North America, and the other was the International Convention of Chabad Emissaries. Whilst both are awe inspiring in their grandeur and both are focused on Jewish continuity, the Chabad movement continues to rapidly grow at a spanking pace and the Federations appear to be largely stagnant.

The JFNA is a well oiled machine with an established infrastructure, smooth mechanisms and operational hierarchy. By contrast, although there are a number of supporting bodies, from an organizational perspective, Chabad in some ways appears as a haphazard band of ragtag rabbis independently operating without any authoritative organizational body, with no central CEO or board of directors and no endowment, trust fund or investment portfolio.

As opposed to the Federations, there are few, if any, studies, polls, or annual reports conducted within the Chabad movement, and none are able to quantify the precise number of its members. One would be hard pressed to find a flow chart or academic assessment of Chabad’s growth, although agreement is unanimous: Chabad is growing rapidly.

Chabad institutions have attracted some of the most sophisticated and advanced business and industry leaders as donors. At the concluding banquet of the conference this week the guests included the likes of Michael Steinhardt, Guma Aguiar, Lev Leviev, Eduardo Elsztain, Ronald Lauder and many others. Gennady Bogolubov delivered the keynote speech.

At first glance one may wonder why the informality doesn’t drive away savvy investors that are used to detailed reports, due diligence and rigorous accountability. The answer is simple; when one gives money to Chabad, one can rest assured that they will see the fruits of their contribution. Donating to Chabad embodies what has become known as true venture philanthropy or entrepreneurial idealism.

Of course any shrewd investor will appreciate the value of a deal, whatever package it is presented in, especially in today’s fast paced world where giants of industry demand immediate ROI.  Chabad will deliver exactly that: instant tangible results. Donations are not swallowed up by antiquated mechanical financial infrastructures; there is no red tape, application processes, panels or mazes of bureaucracy. The Chabad institutions are focused on the immediacy of the task at hand, and are innately adverse to anything that will slow it down.

Additionally, donors can always rest assured that a donation to a Chabad establishment will support a Jewish cause. The Federations, by contrast, earmark large contributions for general humanitarian causes in the spirit of ‘Tikkun Olam,’ but with so many modern day Jewish challenges to contend with, many donors are making the statement that our own should come first.

Much of the donor interest in Chabad can be further crystallized by making a comparison to the Tea Party movement. The movement’s primary concerns include, but are not limited to, cutting back the size of government,  reducing wasteful spending, reducing the national debt and  adherence to an original interpretation of the United States Constitution.

Chabad’s primary concerns include cutting back the top-down, parochial mode of Jewish practice, maximizing the use of every philanthropic dollar, (there are no earmarks or pork barrel spending) lifting the pride and confidence of the Jewish people, and adherence to an original interpretation of Jewish law.

Chabad is a purist, entrepreneurial, visionary and versatile, completely action-oriented and results-driven organization. If you are an industrious venture philanthropist looking for immediate high returns, there is no better investment.

The Author is the director of the Algemeiner Journal and the GJCF and can be e-mailed at [email protected]

NOTE: The views expressed here are those of the authors and do not necessarily represent or reflect the views of YWN.



5 Responses

  1. Another reason is because chabad will do whatever the donor wants, to make them happy. I know first hand of a very wealthy individual who would only donate to the shuls/schools in his community if the rabbi would sit down and meet with all the other rabbis in town including conservative and reform. His reasoning was in order to promote “unity”. He also wanted that every institution should be intertwined with each other. Of course all the orthodox rabbis did not agree and he doesn’t support them. The only orthodox institution that does is chabad. While the other rabbis went with the shita of the gedolim, chabad went with their own shita. (I’m not saying they are wrong, they have their own leaders).
    There are other situations similar to this. That is why we don’t see many more donations to chabad. In short, people who donate large sums of money want to have a “say” and many rabbis are not willing to bend their principals for money. To sum it up ” Money talks”!

  2. Make no mistake about it: Yidden everywhere, of all backgrounds and at all levels of observance, are good-hearted and caring. It’s part of what makes them Jews; recognizable as the children of Abraham.

    Yet, to merit the boundless zchusim one attains by funding Torah v’Chessed, one needs to deserve it. Thus, a self proclaimed aetheist (such as one of the honored gvirim mentiones as present at the Chabad convocation) will never give a dime to authentic Torah institutions. Such people simply aren’t worthy of being the major supporters of a Lakewood, a Tomchei Shabbos, a Yad Eliezer, a Lev L’Achim or even just their local Hebrew Day School.

    Instead, their millions will go to concepts and ism’s. Chabad, Birthright, Jewish Federation programs in Uganda and the like, are evidence of the donors good intentions but earn them nominal merit. The hundreds of millions of dollars spent to enable far-flung Chabad houses to accomodate itinerant Israeli backpackers during their weekend in Timbuktoo, have not had as much impact on yiddishkeit as the thousands of dollars invested to create and maintain a successful Day School with a systematic program churning out ehrliche yidden year after year.

    Of course, every neshama ignited is priceless, but nevertheless, ‘priceless’ comes at a cost and the savvy tzedaka investor would be well advised to study where he will truly get some bang for his buck.

    The Jewish ‘donors’ of the not-yet-observant world, are heaping their well intentioned largesse on the feel-good charities and missing the point by a mile. They are buying into the expensive glitz (ads, conventions, websites) and missing the point.

    May they see the light and learn what they could accomplish by sprinkling their millions around the real Torah world and reap returns beyond imagination.

  3. “While the other rabbis went with the shita of the gedolim, chabad went with their own shita”

    And indeed as you say, there is absolutely nothing wrong with following the instructions of your own rabbis! Rov Soloveitchik z’tz’l also permitted working with the heterodox in some circumstances.

    And what works for one community might not work for others. We in the NY area where we have five Orthodox shuls in a single block don’t understand how isolated it can be to be a Jew in a small city or rural area. Old small Orthodox congregations get little to no support from outside — or at times even open warfare against them as the case of the National Council of Young Israel and the community in Syracuse shows. I’m willing to trust the rabbis on the ground on these things and not second-guess.

    “Thus, a self proclaimed aetheist (such as one of the honored gvirim mentiones as present at the Chabad convocation) will never give a dime to authentic Torah institutions.”

    I personally am aware of a self-proclaimed atheist who made a very large contribution to an Orthodox yeshiva.

    “The hundreds of millions of dollars spent to enable far-flung Chabad houses”

    Although I am not a Lubavicher, I personally know many Jews who have been brought to Torah by some of those far-flung Chabad houses.

  4. strictly yosher is unfortunately blinded by his new york parochialism. Many of these “far-flung Chabad houses” also function as THE day school of that city. I know this is the case in many out of town cities that chabad is the ONLY yeshivah ketanah, much like any other day school.It just so happens that chabad has many,many functions and this includes shcools and also chabd houses.

  5. In exchange for his gift, Chabad promises the donor magical success in business and an unconditional ticket to heaven. That’s all there is to it and the key to Chabad’s bursting bankroll.

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