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