MISSION:
UJA-Federation of New York (http://www.ujafedny.org)
"cares for those in need, rescues those in harm's way,
and renews and strengthens the Jewish people in New York,
in Israel, and around the world. We reach out to the poor,
the elderly, and people in need, providing social and
humanitarian services in New York and around the world;
connect communities worldwide by aiding Jews in distress
and by strengthening and sustaining Jewish communities
from Belarus to Buenos Aires; and we support programs
to make Jewish education more meaningful, to deepen
Jewish identity, and to recruit and train dynamic
professionals to serve the community."
FINANCIAL EFFICIENCY EVALUATION:
According to Charity Navigator,
(http://www.charitynavigator.org)/
America’s leadingcharity evaluator, UJAFNY has an overall rating of four stars (four stars is the highest rating.) Charity Navigator provides the following breakdown of UJAFNY based on 990 tax returns through fiscal year 2007:
Overall Rating ****
Organizational Efficiency: Program Expenses 79.2%
Administrative Expenses 6.9%
Fundraising Expenses 13.8%
Fundraising Efficiency $0.14
(UJAFNY spends $0.14 to raise $1.)
Efficiency Rating ***
Organizational Capacity:
Program Revenue Growth 10.8%
Program Expenses Growth 11.7%
Working Capital Ratio (years) 2.68
(UJAFNY can sustain itself for 2.68 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.
Compensation for its Executive Vice President and CEO, John Ruskay was $428,000 which was 0.17% of expenses. Percentage wise, the 0.17% is a very low figure.
As of fiscal year 2007, UJAFNY had net assets of $1,070,066,000. UJAFNY had investments of publicly traded securities of $519,275,000 (990 Tax return – line 54a) and it had investments of other securities $438,208,000 (line 54b); the attached Securities Schedule (page 89 of the tax return) described most of this amount, $378,238, as Alternative Investments. UJAFNY had cash non- interest bearing investments of $7,736,000 and savings and temporary cash investments of $80,650,000. It had pledges receivable less allowance for doubtful accounts of $91,070,000. UJAFNY had fixed assets of land, buildings and equipment less accumulated depreciation of $77,212,000. In fiscal year 2007, UJAFNY operated with an excess of $30,208,000.
DISCUSSION:
As of fiscal year 2007, UJAFNY had a working capital ratio of 2.68 years. with approximately 10% of its net assets in liquid investments. Though UJAFNY had no direct exposure to Madoff investments, some of its assets in the form of pledges receivable probably had exposure to Madoff investments. Since less than 10% of its net assets are in the form of pledges, the Madoff scandal will have minimal affect on UJAFNY’s ability to fund its programs. However, since a large portion of its net assets were in the form of securities, and since most investment portfolios took a hit of at least 33%, UJAFNY will be forced to reduce the amount of funding it provides to its target programs.
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, UJAFNY should be more transparent about its finances. UJAFNY should emulate the transparency of the American Jewish World Service and provide the following information on its web site:
1) Its three most recently filed tax returns.
2) Its investment philosophy and a breakdown of the risk level of its investments.
3) It should provide its complete fiscal year 2007 financial statements, not an abridged statement.
4) It should provide the fact that it has earned an overall four star rating from Charity Navigator and it should provide a pie chart breakdown of its expenses.
5) It should provide information about its exposure to Madoff
investments on the homepage of website, especially since it had
NO exposure to Madoff.
6) It should provide information that its CEO is compensated at a rate that is a very small rate of expenses and that he took a cut in pay in the past year.
Next Week’s Blog: American Jewish World Service
Sunday, May 17, 2009
Sunday, May 10, 2009
Jewish National Fund
MISSION: “Founded in 1926, the Jewish National Fund (JNF) www.jnf.org America has been a vital part of Zionist history, achieving its goal of purchasing the land that would become the State of Israel, helping to develop that land into a thriving nation, and protecting Israel's environment. Over the past century, JNF has planted over 240 million trees, built over 180 dams and reservoirs, developed over 250,000 acres of land, created more than 1,000 parks throughout Israel and educated students around the world about Israel and the environment. As a global environmental leader focusing on Israel, JNF is committed to improving the quality of life for all who live in the Middle East.”
FINANCIAL EFFICIENCY EVALUATION:
According to Charity Navigator
(http://www.charitynavigator.org/),
America’s leading charity evaluator, JNF has an overall
rating of four stars (four stars is the highest rating.)
Charity Navigator provides the following financial
breakdown of JNF based on 990 tax returns through
2007:
Overall Rating: Four stars ****
Organizational Efficiency:
Efficiency Rating: Four stars ****
Program Expenses: 84.3
Administrative Expenses: 7.3%
Fundraising Expenses: 8.2%
Fundraising Efficiency: $0.08
(JNF spends $0.08 to raise $1.)
Organizational Capacity:
Capacity Rating: Four stars ****
Primary Revenue Growth: 9.3%
Program Expenses Growth: 14.9%
Working Capital Ratio (years): 0.49
(JNF can sustain itself for 0.49 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 Chief Executive Officer, Russell Robinson, was $302,531 which represents 0.67% 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. Percentage wise, these are very low figures for nonprofit organizations.
As of fiscal year 2007, JNF had net assets of $52,752,456. JNF had
investments of publicly traded securities of $15,192,853 of which 36% was invested in riskier common stock. JNF had cash non-interest bearing investments of $2,084,077 and savings and temporary cash investments of $1,192,902. It had pledges receivable less allowance for doubtful accounts of $20,629,568. JNF had fixed assets of land, buildings and equipment less accumulated depreciation of $3,939,984. In fiscal year 2007, JNF operated with an excess of $5,088,616.
JNF also runs a donor advised fund program and made grants from these donor advised funds of $710,800.
DISCUSSION:
As of fiscal year 2007, JNF had a working capital ratio of 0.49 years with approximately 1/3 of its net assets in liquid investments. 38% of
its net assets are in the form of pledges receivable after allowing for a 25% rate of doubtful accounts. Though JNF had no direct exposure to Madoff investments, some of its assets in the form of pledges receivable probably had exposure to Madoff investments. Thus, in the present economic environment, JNF will experience a higher rate of doubtful accounts.
Accordingly, JNF will not be able to fund all the programs that it has in the past; JNF will have to reduce all of its expense with a concomitant decrease in organizational capacity.
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, JNF
should be more transparent about its finances.
JNF should provide the following information on its web site:
1) Its three most recently filed tax returns.
2) 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.
4) It should provide information explaining what it means to have
an overall four star rating from Charity Navigator.
Next Week’s Blog: American Jewish World Service
FINANCIAL EFFICIENCY EVALUATION:
According to Charity Navigator
(http://www.charitynavigator.org/),
America’s leading charity evaluator, JNF has an overall
rating of four stars (four stars is the highest rating.)
Charity Navigator provides the following financial
breakdown of JNF based on 990 tax returns through
2007:
Overall Rating: Four stars ****
Organizational Efficiency:
Efficiency Rating: Four stars ****
Program Expenses: 84.3
Administrative Expenses: 7.3%
Fundraising Expenses: 8.2%
Fundraising Efficiency: $0.08
(JNF spends $0.08 to raise $1.)
Organizational Capacity:
Capacity Rating: Four stars ****
Primary Revenue Growth: 9.3%
Program Expenses Growth: 14.9%
Working Capital Ratio (years): 0.49
(JNF can sustain itself for 0.49 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 Chief Executive Officer, Russell Robinson, was $302,531 which represents 0.67% 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. Percentage wise, these are very low figures for nonprofit organizations.
As of fiscal year 2007, JNF had net assets of $52,752,456. JNF had
investments of publicly traded securities of $15,192,853 of which 36% was invested in riskier common stock. JNF had cash non-interest bearing investments of $2,084,077 and savings and temporary cash investments of $1,192,902. It had pledges receivable less allowance for doubtful accounts of $20,629,568. JNF had fixed assets of land, buildings and equipment less accumulated depreciation of $3,939,984. In fiscal year 2007, JNF operated with an excess of $5,088,616.
JNF also runs a donor advised fund program and made grants from these donor advised funds of $710,800.
DISCUSSION:
As of fiscal year 2007, JNF had a working capital ratio of 0.49 years with approximately 1/3 of its net assets in liquid investments. 38% of
its net assets are in the form of pledges receivable after allowing for a 25% rate of doubtful accounts. Though JNF had no direct exposure to Madoff investments, some of its assets in the form of pledges receivable probably had exposure to Madoff investments. Thus, in the present economic environment, JNF will experience a higher rate of doubtful accounts.
Accordingly, JNF will not be able to fund all the programs that it has in the past; JNF will have to reduce all of its expense with a concomitant decrease in organizational capacity.
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, JNF
should be more transparent about its finances.
JNF should provide the following information on its web site:
1) Its three most recently filed tax returns.
2) 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.
4) It should provide information explaining what it means to have
an overall four star rating from Charity Navigator.
Next Week’s Blog: American Jewish World Service
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