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.”

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

Overall Rating ***
Organizational Efficiency: Program Expenses 79.6%
Administrative Expenses 13.1%
Fundraising Expenses 7.2%
Fundraising Efficiency $0.06
(AMIT spends 0.06 to raise $1.)
Efficiency Rating ****

Organizational Capacity:
Primary Revenue Growth 20.0%
Program Expenses Growth -8.5%
Working Capital Ratio (years) 0.92
(AMIT can sustain itself for 0.92 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, Arnold Gerson,
was $287,158 which was 3.58% of expenses. For purposes
of comparison, compensation for Ruth Messenger, the
President of the American Jewish World Service, was
$218,625 which was 0.76% of expenses.

As of fiscal year 2007, AMIT had net assets of $17,798,411
(up from 17,487,511 in 2006) and total assets of $19,998,800
(up from $19,420,466 in 2006.) AMIT had investments of
publicly traded securities of $3,128,290 (990 Tax return –
line 54a) and it had investments of other securities of $83,772
(line 54b). AMIT had cash non- interest bearing
investments of $1,033,960 (line 45) and savings and temporary
cash investments of $3,541,875 (line 46.) It had pledges
receivable less allowance for doubtful accounts of $12,500
(line 48b.)AMIT had fixed assets of land, buildings and
equipment less accumulated depreciation of $10,580,195
(line 57c) and other investments of $0 (line 56.)

PET (Philanthropy Economic Transparency) Index:
According to this blog’s financial transparency rating
system of information provided by the nonprofit on its
own website, AMIT has a transparency rating of 3 stars
(6 stars is the highest rating.) Of the following six
items, AMIT provide items 1, 2 and 4 of the following
metrics on its website:
1) The nonprofit’s Charity Navigator rating
2) A breakdown of the nonprofit’s expenses
3) The nonprofits most recently filed 990 tax return
4) The nonprofit’s annual report
5) The nonprofit’s audited financial statement
6) The nonprofit’s investment philosophy

DISCUSSION:
As of fiscal year 2007, AMIT was a financially
efficient nonprofit with high organizational capacity.
Though AMIT had no direct exposure to Madoff
investments, the downturn on Wall Street will cause
its donors to reduce their support. As of fiscal year
2007, a small percentage of its net assets (17%) were
in publicly traded securities and a larger percentage
(25%) were in safe liquid assets; this conservative
investment strategy combined with its good working
capital ratio of 0.92 years will help AMIT weather
the Wall Street meltdown and allow it to continue to
provide support for educational and social services
in Israel.


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. Though AMIT does provide financial information
on its web site, in order to reach out to more selective donors,
AMIT should be even more transparent about its finances.
AMIT should provide an audited financial statement and its
most recently filed tax return on its web site.