National Jewish Outreach Program

MISSION: The National Jewish Outreach Program (NJOP), www.njop.org was founded in 1987, by Rabbi Ephraim Buchwald, in response to the urgent need to prevent the loss of Jews to Jewish life due to assimilation and lack of Jewish knowledge. NJOP has become one of the largest and most successful Jewish outreach organizations in the world, reaching out to Jews by offering them positive, joyous, Jewish educational opportunities and experiences. NJOP programs are presently offered at more than 3,665 locations across North America, and in 37 countries worldwide. NJOP has successfully reached close to 1,040,000 North American Jews and engaged them in Jewish life.

FINANCIAL EFFICIENCY EVALUATION:
According to Charity Navigator
(http://www.charitynavigator.org/),
America’s leading charity evaluator, NJOP has an overall
rating of two stars (four stars is the highest rating.)
Charity Navigator provides the following financial
breakdown of NJOP based on 990 tax returns through
2007:

Overall Rating: Two Stars **
Organizational Efficiency:
Efficiency Rating: Two stars **
Program Expenses: 73.4%
Administrative Expenses: 12.8%
Fundraising Expenses: 13.7%
Fundraising Efficiency: $0.13
(NJOP spends $0.13 to raise $1.)

Organizational Capacity:
Capacity Rating: Two stars **
Primary Revenue Growth: 5.1%
Program Expenses Growth: -0.2%
Working Capital Ratio (years): 0.35
(NJOP can sustain itself for 0.35 years
without generating 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 Director, Ephraim Buchwald,was $128,052 which represents 6.05% of expenses. For comparison purposes, compensation for the President of the American Jewish World Service, Ruth Messinger, was $191,000 which represents 0.79% of expenses.



As of fiscal year 2006, NJOP had total assets of $722,020. Of this figure NJOP had investments of publicly traded securities of $19,158 (in 2005, this figure was $200,174) and cash non-interest bearing investments of $100 and savings and temporary cash investments of $167,833. It had pledges receivable of $492,121. NJOP had fixed assets of land, buildings and equipment less accumulated depreciation of $18,784. Thus, in fiscal year 2006, NJOP operated at a deficit of $128,139.

As of fiscal year 2007, NJOP had total assets of $883,944. Of this figure NJOP had investments of publicly traded securities of $0 and cash non-interest bearing investments of $100 and savings and temporary cash investments of $406,190. It had pledges receivable of $437,253. NJOP had fixed assets of land, buildings and equipment less accumulated depreciation of $18,617. Thus, in 2007, NJOP operated at an excess of $84,059.


DISCUSSION:
On the 13th anniversary of the Shabbat Across America/Canada
event, NJOP should be acknowledges for its financial insight.
1) NJOP was prescient about the financial crisis of 2008. Between
2005 and 2007, it completely reduced its investments in publicly
traded securities and increased its investments in its liquid savings
and temporary cash investments.
2) As NJOP moved out of risky investments in securities, it moved
from operating at a 2006 deficit to operating with an excess in 2007.
3) NJOP had no exposure to Madoff investments.
4)However, NJOP’s ability to withstand the present economic downturn is questionable as 49% of its 2007 total assets are based on pledges. Donors’ ability to fulfill on past commitments is uncertain due to the unknown effects of the economic downturn on individual donors.

RECOMMENDATIONS: The recent financial turmoil, caused by the Wall Street and Madoff scandals, has also affected the relationship between donor and non-profit. The turmoil has caused donors to become uncertain and more selective in giving to non-profits. Non-profits that are transparent about their finances will regain the lost trust of its donors sooner than those non-profits that are not transparent about their finances. In order to reach out to more selective donors, NJOP should be more transparent about its finances.
NJOP should provide the following information on its web site:
1) It should provide its three most recently filed tax returns.
2) Since NJOP did a superb job at predicting the economic downturn, it should provide its investment philosophy and a breakdown of its investments on a semi-annual basis.
3) It should provide information about its exposure to Madoff investments on the homepage of website, especially since it had NO exposure to Madoff.

In conclusion, website visitors need to be made award of NJOP’s prescient economic forecasting.