Jewish Federation 2009-10 Allocations
to Jewish Agencies Drop 8%
 ’08 community fundraising showed largest decline in six years;
endowment income down 27% due to financial markets

 
Jewish Federation’s Board of Directors has approved a plan to distribute $9.8 million in 2009-2010, which translates to nearly 8% less than 2008. Forty-eight Jewish agencies, programs and services in St. Louis, Israel and around the world rely, in varying degrees, upon yearly funding from Jewish Federation’s community campaign.

Federation’s Board of Directors faced difficult decisions about how to distribute fewer dollars for core unrestricted allocations to agencies, programs and special projects.  The result is an across the board cut in core unrestricted allocations to agencies and programs of an overall average of nearly 6.4%, as well as cuts in funds for special targeted projects.

The Federation allocations breakdown for 2009-2010:
•        Local: $5.121M – down 7.7% from ‘08
•        Overseas: $3.871M – down 7.7%
•        National: $591,000 – down 15.2%
 
Non-profit organizations across the board are seeing reductions in donations and decreased value in investments.  “The declining economy made for one of the toughest years in our community’s history,” said Sanford Neuman, Federation Campaign vice president. “Campaign fundraising totals were down 3% from 2008. It was the first decline in six years. In addition, endowment funds declined 27% in 2008 because of the performance of the financial markets. Other Federations, most major universities and other non-profit organizations are reporting similar results.”

Unfortunately, declines in allocations come as demand for services is rising. Does this mean agencies will close? Programs end? Are some weakened so much that their effectiveness will be compromised? “Lean times mean that our agencies will have to re-examine priorities, cut costs and reduce budgets. Jewish Federation has cut its own internal expenses by 6.3% and reduced its workforce by 13%. We may need to use more volunteers and realign or consolidate programs,” said Barry Rosenberg, Federation executive vice president, who cited a recent example. “Reform Jewish Academy and Solomon Schechter received a prestigious Avi Chai grant that will fund the sharing of their operational costs,” said Rosenberg. 

As our community weathers this financial crisis, funds must also be raised to replenish the $500,000 Lifeline Fund, which was established in November, 2008, to offer food, cash assistance and interest free loans to families in economic crisis. Recently, the Lifeline Fund received a $50,000 grant from a local foundation.  

“As we work to meet the critical needs of families hurt by the economy, we must also continue work on our long range priorities. These include support for Senior Services, such as the JCC and Crown Center’s Social Nutrition (hot kosher meal) programs; Jewish identity such as Jewish education and funding for youth travel to Israel via Birthright Israel, or Global Jewish Unity and Peoplehood that includes Focus Israel, designed to strengthen the place of Israel in St. Louis’ community programming and services,” said Rosenberg.

Under Jewish Federation’s allocations process, local agencies are reviewed and funds allocated in three-year cycles. “The process this year was particularly challenging. It involved the input and hard work of approximately 60 local lay leaders representing a wide variety of ages, interest and viewpoints,” said Robert Millstone, Planning and Allocations Committee vice president.

Hillel students on a social service project

“Here’s just one example of how challenging these decisions have been,” said Millstone. “Hillel at the University of Missouri serves 700 Jewish students with only one full-time staff person.  Any budget cuts could have closed Hillel’s doors – just when the Jewish student population is increasing. Obviously, we decided not to cut Hillel’s funding. But in other cases, it was necessary to reduce allocations. The reality is our community must prioritize in order to meet the most critical needs.” 

“In the meantime, the best way to keep our community vibrant and thriving,” said Rosenberg, “is to support the 2009 Community Campaign. It is the underpinning of everything we do in our community.  Campaign contributions make it possible for our Jewish agencies to serve everyone in our community in good times and bad. So, especially now, every contribution – even a small one- makes a significant impact.” 

To date, our Community Campaign is running some $2.2 million behind last year,” said Ruth Lederman, Federation assistant executive director and director of development. “Many major donors have made gifts at the same level as last year or some with increases, despite massive cuts in their personal wealth. Our Jewish community has an incredible history of strength.  When the needs are there – we respond. Through each person’s generosity and our community’s work to collaborate and consolidate, we can emerge from this crisis as a stronger Jewish community.”

Right now, the economy may be showing signs of recovery, but Federation leaders predict the impact of the economic crisis will be long lasting and the effect on next year’s allocations could be equally serious. “Of course,” said Lederman, “this depends on the final results of the 2009 campaign and performance of our endowments.”