Yeshiva University

Mission:
Now in its second century, Yeshiva University (YU),
http://www.yu.edu/, ranks among the nation's leading academic
research institutions. It embraces the heritage of the best
of western civilization, along with the ancient traditions of
Jewish law and life. YU's undergraduate schools and
divisions include Yeshiva College, Stern College for Women,
and Sy Syms School of Business. We bring wisdom to life
by combining the finest, contemporary academic education
with the timeless teachings of Torah. Our 7,427 students
can choose from a full spectrum of undergraduate and
advanced degrees, at any of our four U.S. campuses or our
campus in Israel.

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

Overall Rating Four Stars****

Organizational Efficiency:
Efficiency Rating Four Stars ****
Program Expenses: 94.5%
Administrative Expenses: 2.9%
Fundraising Expenses: 2.5%
Fundraising Efficiency: $0.06
(YU spends $0.06 to raise $1)

Organizational Capacity:
Capacity Rating Four Stars ****
Primary Revenue Growth: 5.6%
Program Expenses Growth: 9.4%
Working Capital Ratio (years): 0.75 years
(YU can sustain itself for 0.75 years
without generating any new revenue.)
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 their programs and services over the
long haul.

Compensation for its president, Richard Joel, was
$689,124 which represents 0.11% of expenses.
Percentagewise, this is a very low figure.
As of 2006, YU had net assets of $1,902,047,022.
Of this figure, YU had investment-securities
assets of $1,511,846,995 and fixed assets of
land, buildings and equipment less accumulated
depreciation of $427,654,364.

Discussion:
YU’s working capital ratio of 0.75 years is a measure
of its reserve of liquid funds in excess of current
liabilities that is available as a margin of safety
against future financial uncertainty and such random
shocks, as the Wall Street meltdown and the Madoff
affair, to which its flow of funds is subject.
According to a letter sent to the YU community from
President Richard Joel, the damage caused by these
“random events” has caused the YU endowment to
drop; it was $1.7 billion in January and is now
$1.2 billion. Most of the loss was due to the
Wall Street meltdown, NOT from the Madoff scandal.
As YU has received four star organizational efficiency
and organizational capacity ratings, YU is well
positioned to weather this economic downturn.

Recommendations:
Due to the lack of financial transparency on Wall
Wall Street, and by Madoff, the public has become
more selective to giving to non-profits. Since
YU has received the highest ratings from Charity
Navigator, YU needs to publicize this favorable
information. YU should publicize that its president
receives compensation that is very low percentage
wise.In addition, YU should also provide
easy access to its financial statements and
tax returns. YU should provide access to this
information on the homepage of its website,
http://www.yu.edu/.

Next week’s blog: The American Jewish Congress