Jewish Philanthropy Facts on the Occasion of Israel's 60th Birthday

The past decade has seen an explosive growth
of foundations. This has occurred due to two
factors. First, the United States has experienced
16 years of economic growth due to the
establishment of new industries in technology
and financial services. Second, changes in the
tax laws, including a reduction in capital gains
and dividend taxes and incentives for
contributing appreciated assets to charities,
have encouraged foundation growth.

Though Jews comprise only 2% of the population,
we are disproportionately represented among the
wealthiest Americans has noted by lists such as
the Forbes 400 richest Americans. Many baby
boomer Jews, though not present on these lists,
are accumulating wealth. Jewish tikkun olam and
cultural emphasis on philanthropic giving as
exemplified by Bill Gates and Warren Buffet have
led to the establishment of many new foundations.
These foundations exist as private foundations, as
donor advised funds managed by financial institutions
like Fidelity Investments, and as philanthropic
foundations administered by Jewish Federations and
organizations.

Gary Tobin and Aryeh Weinberg recently published
“A Study of Jewish Foundations” for the Institute for
Jewish and Community Research. Their study was
based on the foundations’ most recently filed tax
returns (either 2004 or 2005.) Non-profit institutions
have a longer time to file tax returns than the individual.

For Definitional purposes, a “Jewish Foundation” is
a foundation established by a Jew without taking into
account the individual’s level of practice or identity.

Facts (from the Tobin-Weinberg study):

Of the 100 largest foundations in the United States,
eight were founded by Jews. Total assets of Jewish
foundations is about $17 billion.

There are 45 foundations with assets of more than
$2 billion. There are two Jewish foundations with
assets of more than $2 billion, the Annenberg
Foundation and the Harry and Jeanette Weinberg
Foundation. In either 2004 or 2005 (depending on
which was their most recently filed tax return), Jewish
foundations made grants totaling $1.2 billion.Most
Jewish foundations gave most of their grants and a
majority of their dollars to non-Jewish causes and
institutions:
21% of total dollars went to Jewish organizations
79% of total dollars went to non-Jewish organizations.

7% of the total dollars given by Jewish foundations to
Jewish organizations ($1.2 billion) went to Israel
related organizations ($79 million.)

The Harry and Jeanette Weinberg Foundation is the
second largest Jewish foundation with total asset of
$2 billion. It awarded grants totaling $98,674,000 of
which 52% went to Jewish organizations. It gave more
in total dollars to Jewish organizations than any other
Jewish foundation.The Avi Chai Foundation has total
assets of $649 million. It awarded grants totaling
$38,774,000 of which 98% went toJewish organizations.
It also gave more total dollars ($12,019,940) to Israel
related causes than any other foundation.

The Ted Arison Family Foundation USA, Inc. gave the
highest percentage (88% = $2,931,280) of donated dollars
to Israel related causes than any other foundation.

The Ronald S. Lauder Foundation has total assets of $67
million. It awarded grants of $2,915,000 million of which
100% went to Jewish organizations.

The Steinhardt Philanthropies have total assets of $15 million.
It awarded grants of $15,076,000 of which 58% went to
Jewish organizations.

The Annenberg Foundation is the largest Jewish
foundation with total assets of $2.6 billion. It awarded
grants totaling $256,384,000 of which 0% went to Jewish
organizations.

The Soros Fund Charitable Foundation has total assets of
$96 million. It awarded grants of $4,258,000 of which 1%
went to Jewish organizations.

Following are other Jewish foundations which gave less
than 10% of their donated dollars to Jewish organizations:
The Maltz Family Foundation, The Arthur M. Blank Family
Foundation, The Picower Foundation, The Lerner
Foundation, The Rady Family Foundation, The Michael
and Susan Dell Foundation, The Sandler Family Supporting
Foundation, The Evelyn and Walter Haas, Jr. Fund, The
Pritzker Foundation, The Weingart Foundation, The Weill
Family Foundation, The Broad Foundation, and
The George Kaiser Family Foundation.

With as little as $5000, any person or family can set up a
family foundation in the form of a donor advised fund with
Fidelity Investments. The website for Fidelity Investments
is http://www.fidelity.com/ and its telephone number is 800-Fidelity.
The Jewish Communal Fund (of New York) has a minimum
contribution of $5,000. However, the minimum contribution
for children is $1,800. The website for the Jewish Communal
Fund is http://www.jewishcommunalfund.org/.
Its telephone number is 212 752-8277.

American Friends Migdal Ohr

Mission:
“American Friends of Midgal Ohr (AFMO)
www.migdalohrusa.org is the North American
fundraising arm of Midgal Ohr in Israel.
Migdal Ohr is Hebrew for “Tower of Light,”
named for our ability to illuminate a path to a
better life for orphaned, abused, underprivileged,
and new immigrant children in Israel. For more than
34 years, our organization has been transforming the
lives of children from impoverished and disadvantaged
homes, where the basic need for shelter, safety, and
love could not be met. We provide over 6,500 boys and
girls with the priceless opportunity to experience
family, live each day with a sense of well being, and
gain the education and skills needed to feel safe and
live productive, rewarding lives. Migdal Ohr runs a
network of schools, including nurseries and
kindergartens; operates a foster home village for
orphaned and disadvantaged boys and girls; provides
academic and vocational studies; integrates new
immigrant children into Israeli society through
specialized curricula and after-school programs; and
reaches out to impoverished families to alleviate their
problems and create a better home environment for their
children. We admit new children as operational and
capital funds become available to build new dorms,
classrooms, and other school facilities. In this past year,
we admitted over 700 new children from impoverished
and dysfunctional backgrounds. We are very proud of our
mission—to help our children develop into happy, fulfilled
and successful adults. Today "our" children are growing up
to become upstanding citizens, fine human beings, and
leaders in the next generation of doctors, lawyers, scientists,
computer technicians, army officers, community leaders,
teachers, and rabbis.”

Recent News:
Next week, basketball Hall of Famers Rick Barry and Dr. J,
Julius Erving, will visit Israel to do what they are best known
for, shooting some hoops, and to raise money for Migdal Ohr.
Barry said that he knows how valuable playing team sports
can be for children and was quoted as saying that, "it keeps
kids out of trouble, and it teaches them perseverance,
unselfishness, and dedication. These are skills that are
important on a sports team, but also in business." On his recent
visit to New York, Mr. Barry, who is of Irish, English, French,
and Lithuanian descent, spent an afternoon touring the Museum
of Jewish Heritage and learning more about Migdal Ohr. One
fact that impressed him is that 70% of the Migdal Ohr staff are
former recipients of Migdal Ohr services. The idea for the trip
came to the executive vice president of American Friends of
Migdal Ohr, Robert Katz, after he saw the success of an exhibition
game at Madison Square Garden in October between the Knicks
and Maccabi Tel Aviv. It raised more than $1 million. Mr. Katz
hopes this trip will also raise funds: He is offering slots to
American patrons to travel with Mr. Barry and Mr. Erving, for a
suggested donation of $25,000.


FINANCIAL EFFICIENCY EVALUATION:
According to Charity Navigator
(http://www.charitynavigator.org)/
America’s leading charity evaluator, AFMO has
an overall rating of four stars (four stars is the
highest rating.) Charity Navigator provides the
following breakdown of AFMO based on 990
tax returns through 2006:


Overall Rating ****

Organizational Efficiency:
Program Expenses 82.5%
Administrative Expenses 8.2%
Fundraising Expenses 9.2%
Fundraising Efficiency $0.08
(AFMO spends $0.08
to raise $1.)
Efficiency Rating ****

Organizational Capacity:
Program Revenue Growth 18.4%
Program Expenses Growth 9.9%
Working Capital Ratio (years) 0.35
(AFMO can sustain itself for
0.35 years without generating
new revenue)
Capacity Rating ****

Organizational Capacity refers to anorganization’s
ability to sustain itselfover time. Charities that exhibit
consistent revenue and expenses growth are more
likely to sustain its programsand services over the long haul.

AFMO has new assets of $1,595,394.Compensation
for its Executive Vice President, Robert Katz, is
$200,000 which is 6.19% of expenses.

For purposes of comparison, Charity Navigator
has given the Fresh Air Fund, which provides
free summer vacations in the country to New
York City children from disadvantaged
communities, an overall rating of two stars.

Next Week’s Blog: Jewish Philanthropy Facts

American Friends of the Israel Philharmonic Orchestra

Mission:
The mission of American Friends of the Israel
Philharmonic Orchestra (AFIPO) is “to secure
the financial future of the Israel Philharmonic
Orchestra (IPO), Israel’s premier cultural
ambassador, so that it may continue to travel
throughout the world bringing its message of
peace and cultural understanding through music.
AFIPO supports the Orchestra's international
touring program, educational projects, a wide
array of musical activities in Israel and an
endowment fund to further ensure the IPO's
future. Funds raised by AFIPO help the
Orchestra initiate and strengthen existing
programs, and maintain its high standard of
musical excellence without placing a financial
burden on the IPO's budget or compromising
its long-term stability.”

Recent News:
The Israel Philharmonic Orchestra with
Zubin Mehta spent the last week of 2007
giving Chinese concert goers a taste of
authentic New Year’s cheer. The New Year’s
Eve concert was broadcast live from Beijing’s
Great Hall of the People. The program opened
with John Williams’ Olympic Fanfare as a
reminder that 2008 is to be China’s Olympic
year. The IPO paid tribute to Chinese music by
performing the Red Flag Overture by Lu Qiming.
For Tchaikovsky’s 1812 Overture the Orchestra
was joined by Chinese music students. Before
the last of three encores, Zubin endeared himself
to the Chinese audience of 6000 by wishing them
a Happy New Year in Chinese, Xin nein Hao!

The Israel Philharmonic Orchestra,
an integral part of the fabric of
the State of Israel, will deliver a
six-performance musical salute to
Israel in Israel in May, on the occasion
of the country’s 60th anniversary.

FINANCIAL EFFICIENCY EVALUATION:
According to Charity Navigator
(http://www.charitynavigator.org)/
America’s leading charity evaluator,
AFIPO has an overall rating of one star
(four starts is the highest rating.) Charity
Navigator provides the following breakdown
of AFIPO based on 990 tax returnsthrough
2006:



Overall Rating *

Organizational Efficiency
Program Expenses 61.9%
Administrative Expenses 8.8%
Fundraising Expenses 29.1%
Fundraising Efficiency $0.32
(AFIPO spends $0.32)
to raise $1.)
Efficiency Rating 0 stars

Oganizational Capacity
Program Revenue Growth -8.0%
Program Expenses Growth 3.5%
Working Capital Ratio 5.01
(AFIPO can sustain
itself for 5.01 years without
generating new revenue.)
Capacity Rating **

Organizatioinal Capacity refers to an
organization’s ability to sustain itself
over time. Charities that exhibit
consistent revenue and expenses growth
are more likely to sustain its programs
and services over the long haul.

The American Friends of the Israel
Philharmonic Orchestra has net assets of
$21,082,917. Compensation for its
Executive Director, Suzanne K. Ponsot,
was $265,266, which is 6.77% of expenses.
For purposes of comparison, the American
Jewish World Service has net assets of
$14,907,618 and compensation for its
President, Ruth Messinger, was $191,000,
which is 0.79% of expenses.

The American Friends of the Israel
Philharmonic Orchestra is not an efficient
non-profit organization in that only 61.9%
of its expenses reach its target – the Israel
Philharmonic Orchestra. Since 2003, it has
also demonstrated a decreasing rate of
revenue growth. Thus, it may have
difficulty sustaining its services to the
Israel Philharmonic Orchestra over the
long haul. In order to receive a four star
rating from Charity Navigator, AFIPO
would need to reduce its fundraising and
administrative expenses.

Next Week’s Blog:
American Friends of Migdal Ohr

Friends of the Israel Defense Forces

Mission:
The Friends of the Israel Defense Forces (FIDF)
is the American partner of the Association for
the Wellbeing of Israel's Soldiers, established by
David Ben-Gurion in 1942. The FIDF initiates
and helps support social, educational, cultural
and recreational programs and facilities for the
young men and women soldiers of Israel who
defend the Jewish homeland. The FIDF also provides
support for widows and orphans of fallen soldiers.
Today's support includes building, maintaining, and
operating 17 modern and sophisticated facilities;
establishing and renovating hundreds of clubrooms
and fitness rooms on IDF bases; and the constant
caring for each and every IDF soldier.

The Wounded Soldiers Program assists hospitalized
soldiers wounded during terrorists' attacks,
operational activities and other circumstances.
There are between 14,000-20,000 hospitalized
soldiers every year in 15 hospitals in Israel . The
FIDF and the Association for the Wellbeing of Israel
Soldiers in Israel are committed to helping and
improving the welfare of these deserving soldiers.
The soldiers are being cared for with assistance
such as: personal kits, laptops, cable television,
personal and hygiene items, access to armored
ambulances, medical simulators, medical
transportation vehicles and respiratory devises.

Recent News:
Amit Hasdai was a combat soldier in the Artillery
Corps. In 2002, when he was only 19, Amit
endured serious head injuries that left him
paralyzed on his right side. He is lucky to be alive
and credits much of that luck to his physical
therapy with horses. Now Amit can walk with
crutches and is training to represent Israel in the
2012 Disabled Olympics. In order to compete
however, Amit needs a horse of his own and the
funds for maintenance and veterinarian care.
The FIDF has decided to help Amit raise the
$65,000 necessary for him to train and
participate in the Disabled Olympics.

Financial Efficiency Evalution:
According to Charity Navigator
(http://www.charitynavigator.org)/
America’s leading charity evaluator, the
FIDF has an overall rating of four stars
(four starts is the highest rating.) Charity
Navigator provides the following breakdown
of the FIDF based on 990 tax returns
through 2006:

Overall Rating ****

Organizational Efficiency
Program Expenses 81.7%
Administrative Expenses 2.9%
Fundraising Expenses 15.3%
Fundraising Efficiency $0.11
(FIDF spends $0.11 to raise $1.)
Efficiency Rating **

Organizational Capacity
Program Revenue Growth 39.6%
Program Expenses Growth 52.2%
Working Capital Ratio (years) 1.27
(FIDF can sustain itself for 1.27
years without generating new revenue.)
Capacity Rating ****

Organizational Capacity refers to an organization’s
ability to sustain itself over time. Charities that
exhibit consistent revenue and expenses growth
are more likely to sustain its programs and services
over the long haul.

The FIDF has net assets of $43,332,745.
Compensation for its national director, Yehiel Gozal,
was $243,200 which is 0.71% of expenses.

For comparison purposes, Charity Navigator has
given an overall rating of two stars to the Paralyzed
Veterans of America with offices in Washington D.C.
Its mission is to maximize the quality of life for
American veterans and for all people with spinal cord
injuries or disease.


Conclusion:
The FIDF is a financially efficient non-profit
organization in that a large portion of its expenses
reach its target – Israeli soldiers. It can, however,
improve its efficiency by reducing its fundraising
expenses in half. It has demonstrated a consistent
rate of revenue and expenses growth. Thus, it is
likely that the FIDF will be able to sustain its
programs and services over the long haul.
It would be beneficial for the FIDF to publicize its
four star rating from Charity Navigator.

AMIT

Mission
“Founded in 1925, AMIT is the world's leading
supporter of religious Zionist education and social
services for Israel's children and youth, nurturing
and educating Israeli children to become productive,
contributing members of society. Our more than 70
schools and programs constitute Israel's only government
recognized network of religious Jewish education,
incorporating academic and technological studies. These
also include youth villages and facilities for children in
foster care. At present, AMIT's more than 20,000 children
come largely from impoverished and/or dysfunctional
families; significant numbers are new Ethiopian and
Russian immigrants, as well as young people of Sephardic
backgrounds.”

Recent News:
Yavne School in Paris Joins AMIT in Solidarity
with Sderot
The Yavne School, one of the most prestigious Jewish
schools in Paris with 1,400 students in kindergarten through
12th grade, has decided to join the AMIT Network's "Color
Red" Act of Solidarity with the students in the city of Sderot.
Each time the "Color Red" alarm sounds in Sderot, alerting
residents to a Kassam rocket attack, an "alarm" which is
sounded throughout the AMIT Network will now be sounded
in the Yavne School in Paris as well. Students and teachers
will stop all studies and recite Psalms together, in a show of
solidarity with Sderot’s children and residents. The Yavne
School also has invited a group of students from the AMIT
Torani Madai Elementary School in Sderot to be its guests
for ten days in Paris. The children will be hosted by families
in the Jewish community, will study with their Parisian
counterparts in the mornings, and will tour sites such as the
Eiffel Tower and Euro Disney in the afternoons.
The AMIT Network in Sderot consists of six schools and
programs enrolling almost 2,000 children from kindergarten
through post high school. Every school has a bomb shelter
and additional concrete shelters have been erected in the
school playgrounds. AMIT facilities have sustained damage
from the almost daily Qassam attacks, students have been
seriously injured, and siblings and parents killed.




Efficiency Rating
According to Charity Navigator
(http://www.charitynavigator.org/),
America’s leading charity evaluator,
AMIT has an overall rating of
four stars, (the highest rating.)
Charity Navigator provides the
following financial breakdown
of AMIT based on 990 tax returns
through 2006:

Overall Rating ****

Organizational Efficiency
Program Expenses 82.2%
Administrative Expenses 11.4%
Fundraising Expenses 6.2%
Fundraising Efficiency $0.06
(AMIT spends $0.06 to
raise $1.)
Efficiency Rating ****


Organizational Capacity
Program Revenue Growth 22.6%
Program Expenses Growth 11.3%
Working Capacity Ratio (years) 0.52 years
(AMIT can sustain itself
for 0.52 years without
generating new revenue.)
Capacity Rating ****

Organizational capacity refers to an
organization’s ability to sustain itself
over time. Charities that exhibit
consistent revenue and expenses growth
are more likely to sustain its programs
and services over the long haul.



Conclusion
AMIT is a highly efficient
non-profit organization in that a large
portion of its expenses reach its target –
Israeli children. It has also demonstrated
an upward trend in its rate of revenue and
expenses growth. Thus, it is likely to
sustain its programs and services over the
long haul.

AMIT has net assets of $17,487,511.
Compensation for its Executive Vice
President, Arnold Gerson, is $250,000
which is 2.9% of its expenses.


For comparison purposes, Charity Navigator
has given Africare an overall rating of three
stars. Africare specializes in providing relief
services to Africa.

Next Week’s Blog:
Friends of the Israel Defense Forces