A Wall Street veteran who retired in 2011 at age 47, Michael Lustig chatted with Jewish Communal Fund about his “encore career” volunteering with Jewish nonprofits, including UJA-Federation of New York, The Columbia/Barnard Hillel, NYLAG, and the Spanish & Portuguese Synagogue. He also shared stunning photos from his recent trip to Ethiopia. Read more to learn how that short trip impacted his worldview – and his charitable giving.
Jewish Communal Fund: Tell us about your professional background.
Michael Lustig: I worked on Wall Street for 25+ years, primarily at BlackRock, the largest money manager (currently over $3.9 trillion in assets – larger than the GDP of Germany!). My primary responsibility was managing/trading structured products and derivative securities, and I oversaw the Maiden Lane portfolio for the Federal Reserve. In 2011, I retired and now devote my time to taking classes and assisting a variety of nonprofits. It’s fulfilling and constantly interesting to do something different every day.
JCF: Can you share some of the charitable causes that are most important to you?
ML: I currently serve as President of the Board of the Columbia/Barnard Hillel, an educational institution with which I have a strong connection. I graduated from Columbia University with a major in computer science and a concentration in art history, and for the past 12 years I have lectured at Columbia Business School on the topic of fixed income derivatives. I’ve had past involvement with Youth Renewal Fund, which provides supplementary education to disadvantaged children in Israel. For my twin daughters’ B’not Mitzvah four years ago, they raised more than $20,000 for that organization.
JCF: You’re also very active at UJA-Federation, serving on several commissions and task forces. Can you tell us about that?
ML: Yes, I serve on the Commission on Jewish Peoplehood (CoJP), focusing on economic empowerment in Israel. We target populations in Israel that need help in going up the economic ladder for the ultimate betterment of the country, including Haredim, Ethiopian Israelis, and Arab Israeli citizens. We also administer a loan fund that promotes entrepreneurship among these populations in a variety of communities. One measure of our success is when we’re able to take programs that work successfully with one population and adapt them to others. I’m also active with SYNERGY, which works to strengthen synagogues by providing a host of resources and thought leadership. Additionally I serve on the NY Hillel’s Task Force and the Jewish Communal Network Commission (JCNC) Cabinet. Right now I’m working on a consulting project for NYLAG (a UJA recipient agency) focused on measuring the impact of its response and services provided in the wake of Hurricane Sandy.
JCF: You recently went on a three-day trip to Ethiopia with UJA-Federation of New York. What was the purpose of the trip and how did it impact you?
ML: Many of the projects that UJA funds as part of CoJP relate to Ethiopian Jews living in Israel, so I’ve become educated quite a bit as to the lives and needs of this population. The trip to Ethiopia took place in January, at a unique moment in history as the Ethiopian aliyah is in the process of winding down. Most of the Beta Israel, the core Ethiopian Jews, came to Israel in the mid ‘80s and early ‘90s during Operation Moses and Operation Solomon. The Jews remaining in Ethiopia are the Falasha Mura, descendants of Jews who were missionized into Christianity. They are living lives that in some ways echo what the conversos in Spain went through. There are only a few hundred Falasha Mura left in Ethiopia; those who have familial connections in Israel have been emigrating. By the end of this summer, Ethiopian aliyah will be completed and the Jewish Agency will be pulling out of Ethiopia, donating their remaining assets to the local municipality. We were accompanied on the trip by Micah Feldman, the architect/implementer of Operation Solomon, and he provided excellent context for us throughout the journey.
JCF: What is life like in Ethiopia?
ML: The comparison to our way of life almost defies description; most Ethiopians live in wood/mud huts with dirt floors, have no running water, and oftentimes a hole in the ground outside one’s residence serves as the bathroom. We visited a Jewish school where the children are learning to speak Hebrew – so we were able to communicate with them given that our Amharic was obviously nonexistent.
JCF: What was the highlight of the trip for you?
ML: The highlight was hanging out with the new Ethiopian olim in both airports, before we left Addis Ababa and when we all landed in Ben Gurion. We gave the kids little toys and stickers to play with before the flight, and helped them with their initial acclimation once we got to Israel. As the olim were waiting to be processed by the Ministry of Absorption they were presented with sandwiches – they just stared at them, unsure what to do since they had never seen a sandwich before, much less one wrapped in plastic! I now have a much better sense and empathy for what this population has lived through and where they’ve come from before getting to Israel. The only downside of this once-in-a-lifetime trip was that I’m prohibited from donating blood because I’ve been to Ethiopia; I co-run the blood drive at Ramaz, where my children go to school and am a frequent blood/platelet donor, but I’m now locked-out for a year.
JCF: How would you sum up your tzedakah (charitable giving) philosophy?
ML: I like to give to causes that have a Jewish flavor to them, promote education and/or encourage people to stand on their own financially. I am also a big believer in supporting Jewish continuity, whether that means Hillel or my local synagogue. For me, a crucial element is that my donation be spent effectively with large impact and (ideally) have a degree of leverage – where every dollar that I’m giving is creating multiple dollars’ worth of social/economic value. UJA-Federation does a fantastic job of that and is the centerpiece of my giving and focus.
JCF: How has JCF helped to facilitate your charitable giving?
ML: I’ve had a fund with JCF for more than 15 years. At the time I established the fund I was co-running the UJA campaign at BlackRock. Opening a donor-advised fund at JCF was cheaper and more efficient than starting my own private foundation, and provided tax benefits that I could easily “time.” I particularly like the fact that when I’m recommending a grant to secular charities, the donation has the word “Jewish” attached to it.