Sunday, July 18, 2010

YESHIVA UNIVERSITY

Mission: “Now in its second century, Yeshiva University (YU) 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. Nearly 7,000 students, including 2,798 undergraduates, from 38 states and 55 countries, study at YU's four campuses.” (Charity Navigator Website: http://www.charitynavigator.org)

FINANCIAL EFFICIENCY EVALUATION:
According to Charity Navigator, YU has an overall rating
of four stars (four stars is the highest rating.) Charity
Navigator provides the following breakdown of YU based on 990 tax returns through fiscal year 2008:
Overall Rating ****
Organizational Efficiency: Program Expenses 92.7%
Administrative Expenses 4.2%
Fundraising Expenses 3.0%
Fundraising Efficiency $0.06
(YU spends 0.06 to raise $1.)
Efficiency Rating ****

Organizational Capacity:
Primary Revenue Growth 9.1%
Program Expenses Growth 8.1%
Working Capital Ratio (years) 0.62
(YU can sustain itself for 0.62 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 President, Richard Joel was $834,000 which was 0.12% 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. Percentagewise, these are very low compensation figures for a nonprofit president.

Analysis of Form 990 Tax Return
:
As of fiscal year 2008 (2007 990 tax return), YU had net assets of $2,057,154,163 (down from 2,187,792,963 in FY 2007) and total assets of $2,500,472,720 (down from $2,621,680,265 in FY 2007.) YU had investments of publicly traded securities of $264,895,491 (990 Tax return – line 54a) and it had investments of other securities $1,136,265,612 (line 54b). YU had cash non- interest bearing
investments of $333,959 (line 45) and savings and temporary
cash investments of $14,486,928 (line 46.) It had pledges
receivable less allowance for doubtful accounts of $10,687,105
(line 48b.) YU had fixed assets of land, buildings and
equipment less accumulated depreciation of $718,709,728
(line 57c) and other investments of $17,730,142 (line 56.)

FINANCIAL TRANSPARENCY EVALUATION:
According to our PET (Philanthropy Economic Transparency)
Index, this blog’s financial transparency rating
system of information provided by the nonprofit on its
own website, YU has a transparency rating of 2 stars
(6 stars is the highest rating.) Of the following six
items, YU provides items 3 and 5 of the following
metrics on its website:

1) The nonprofits most recently filed 990 tax return
2) The nonprofit’s audited financial statement
3) The nonprofit’s annual report
4) The nonprofit’s investment philosophy
5) A breakdown of the nonprofit’s expenses
6) The nonprofit’s rating from Charity Navigator

Discussion:

As of fiscal year 2008, YU was a financially
efficient nonprofit with high organizational capacity.
The recent financial turmoil on Wall Street 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 YU is financially transparent in that it does disclose financial information on its web site, in order to reach out to more selective donors, YU should be even more transparent about its finances. YU should provide an audited financial statement and its most recently filed tax return on its web site