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2008 Jewish Agency Annual Report


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2008 Jewish Agency Annual Report

  1. 1. Partnering with you to secure the Jewish future 2008/09 Performance Report Jewish Agency for Israel
  2. 2. leading partnering with purpose As we celebrate our 80-year journey, we’re not looking back—we’re looking forward. For eight decades, the Jewish Agency has convened the Jewish people in an unmatched global partnership with a singular purpose: securing the future of a connected global Jewish people with a strong Israel at its heart. Created in 1929 as the “working government” of a people without a state, with little more than vision and commitment in hand, that was a tall order. Always future-focused, we have made history together. As the pioneering force in the establishment of the State of Israel, and today, as the Jewish world’s most connecting collaborating effective nonprofit, our global partnership has brought more than 3 million Jews home to Israel since 1948. We are the leader in partnering the people of Israel with communities and donors worldwide to meet today’s challenges, reaching deep into the heart of disadvantaged communities to promote opportunity and create truly transformative change for Israel’s at-risk youth. Together, we are making Israel a living part of Jewish communities around the world. Forging peoplehood. Innovating to connect the Jewish world’s new generations through powerful, transformative experiences. No other organization has accomplished more and adapted to emerging challenges with greater impact. Impact made possible through your annual campaigns around the world. But one of the many things we have learned along the way is that there are no timeouts. A year ago, if we had a discussion on the hot spots in the Jewish world it would have been vastly different from the one we need to have today. Who is going to be there as global issues unfold? Who will bring the extraordinary force of a united, caring global community to the table? You. Figuratively and quite literally, you power this global partnership that continues to be one of the greatest strategic assets of the Jewish people. Every generation has taken its turn at the wheel. Now it’s yours.
  3. 3. As the war against civilians in southern Israel partnering in times of crisis escalated last In Israel and across the globe, in times of crisis and peril, you are part of the Jewish world’s first responder team. year, you stood by their side. For more than 40,000 children living in the shadow of fear, that meant at least one day with no ‘code red,’ no sirens, no rockets. Learn more at 2 Jewish Agency 2008/09 Performance Report
  4. 4. partnering in times of crisis standing by the side of Israelis under siege and rescuing Jews around the world when lives are at risk. You provided You saved lives immediate aid to in 10 countries Israelis victimized last year; in 15 by continuing countries during violence. the past decade. No red tape, no waiting. Immediate Where will we be needed next? No one help for immediate needs. knows. But we do know we’ll be there. monItorIng JewIsh communItIes At rIsk There are over 60,000 Jews living in countries where they are at risk. Life is increasingly tenuous for the remnants of Jewish communities living in Arab countries. Less obvious but equally troubling is the situation in many countries that are experiencing a convergence of economic collapse and rising anti-Semitism, or those that have cut all diplomatic ties with Israel. The Jewish Agency continuously Last year you brought this family monitors the situation around the world, ready to from Yemen home to Israel. act. Ready to keep the promise that any Jew, for any reason, can make Israel home. Last year, the same day that Russian bombs fell on Georgia, we put that promise into action, moving in to rescue Jews in imminent danger. Just one example of the lifesaving work you make possible. “ It is difficult to convey the utter fear, the terror, and the emotional and physical devastation of a rocket attack ...” Read the story of this mother of two young children at VIctIms of terror fund crIsIs counselIng remote leArnIng for kIds renoVAtIng bomb shelters 10 508 dilapidated As Kassam rocket fire on the As attacks escalated and southern part of Israel escalated, Our absorption schools closed in the south, the the Fund—established by the centers in the line of fire Israeli business community led shelters in the South United Jewish Communities Israel had special crisis management our partnership in providing that were deemed unsuitable Emergency Campaign and Keren workshops for adult residents to hundreds of computers to for use were renovated. Your gift Hayesod—established an help them navigate Operation children having to transition from leveraged a 2:1 match by the emergency component to provide Cast Lead and a range of group classroom to remote learning. Ministry of Housing, enabling us immediate financial assistance for and individual counseling to to equip these shelters. urgent initial needs. In just the help both young children and wArtIme hotlInes were set up last six months, some 111 victims adolescents deal with anxieties. for both absorption center residents Your support is received this aid, totaling in excess and staff for additional support. making a difference of $100,000. Since 2006, the Fund for victims of terror. has allocated some $6 million in Learn more at direct aid nationwide. 4 Jewish Agency 2008/09 Performance Report
  5. 5. Last year you gave 200 partnering to strengthen Israel and empower change Ethiopian-Israeli A strong Israel will reflect the collective best efforts of the Jewish people. You are indispensable to that effort. preschoolers a critical head start not just in school, but in life. The results? A 26% increase in their knowledge and command of Hebrew, reading and writing. Read the evaluation at 6 Jewish Agency 2008/09 Performance Report
  6. 6. partnering to strengthen Israel and empower change 2,477 young You supported immigrant 31 young soldiers communities discovered transforming the richness of Israel’s social their Judaism and geographic because of you. periphery. Of those not born Jewish, 85% opted Empowering change for thousands of to continue with conversion studies. at-risk youth in the Negev and Galilee Young social change activists have come together to form educational communities to infuse underdeveloped areas of the Negev and Galilee with a new energy and capacity. While each community embraces its own model, “ I love the learning and the people. I feel that I its enterprising college students and recent know so much more about what it means to buIldIng A new lIfe In IsrAel lIVIng the AlIYAh dreAm exPlorIng AlIYAh oPtIons PAVIng the wAY for success post-army adults are committed to giving be Jewish and an Israeli ...” Aliyah remains Israel’s lifeblood— 172 parents of lone immigrant The new ALIYAH JOb CEnTEr back to the community, the majority working Read the story of this young soldier participating in NATIV at especially at this critical stage of building a modern democracy. At the Jewish Agency, we’re there 15,441 newIsrael immigrants came to soldiers from the FSU had an incredible one-week reunion with provided in-depth personalized employment services, advisors with disadvantaged youth. Today, 1,700 young pioneers in 31 urban and rural communities are working with 30,000 children in these areas. each step of the way. Many young immigrant soldiers and students in 2008, including 3,210 from north their children in Israel through and an information-rich portal come to Israel on their own from America, strengthening communities our KESHET program. into the job market in Israel. the former Soviet Union on one of our unique aliyah programs to build across the country. 191 young adult olim from a better life for themselves in Israel. Once here, our full continuum of support includes programs like the 12,400 newcomers living in one of 32 absorption centers are transitioning 80,000 people in the FSU, 5,200-plus Ethiopia were put on a fast track to education through our KEDMA NATIV Jewish identity program, to life in Israel through a range of in France and 2,400 in north absorption program. which solidifies their connection to the Jewish state and our heritage, acculturation programs; 9,000 new America explored aliyah 1,549 olim families and singles and the Wings program, providing immigrants learned Hebrew in our possibilities through fairs, assistance for lone soldiers before connected to a community-wide their army discharge. ulpan sites. community activities, seminars network of support through our and individual counseling. national AT HOME TOgETHEr Whether new immigrants or 850 young people from the FSU born and bred Israelis, these started new lives on their own in volunteer program with veteran olim and Israelis. young people constitute Israel through our young-adult the most important human aliyah frameworks. capital of the Jewish people and the State of Israel. Learn more at 8 Jewish Agency 2008/09 Performance Report
  7. 7. partnering to strengthen Israel and empower change You are giving 6,500 at-risk Israeli youth the tools to compete on a level playing field. What do they think? 85% want to do more. And what do the overwhelming majority of their parents think? It’s life-transforming. The rise in the number of youth at risk is one of the most serious social problems facing Israel. Particularly in the Negev and Galilee, the widening socioeconomic gap is consuming the futures of “ My job is to support these children in every tens of thousands of Israel’s children and youth, aspect of their life ... I help them understand they are special.” ages 6-18. In a community-wide response that partners you with Israeli philanthropists, YOUTh Read the story of this young trustee working with FUTURES is changing the equation. Key to its YOUTh FUTURES at success is a team of young adult trustees who serve as role models and supportive adult figures for each child. last year 350 trustees in 32 locations worked to develop personalized approaches to bridge critical gaps—educational, social and extracurricular—in order to dramatically increase the number of youth who reach their potential. InterVenIng for At-rIsk Youth 1,200in nET@, teens are AdVAncIng equAl oPPortunItIes 1,000 youthoratpart participating 454are getting on a Last year we transformed the lives of more than 22,000 youth at risk a three-year after-school college high risk, living full through our innovative programs. technology program with students time in a YOUTH ALIYAH village, partners Tapuah, Cisco and Keren fast track to career success are receiving the educational and emotional support to not only 13,000-plus disadvantaged students Hayesod, in 22 communities. High tech will be a pathway to success through an internship at one of 142 companies participating in heal, but to thrive. for these students. ATIDIM for Industry. in 169 high schools, primarily in Youth Futures trustees are Some 857 Ethiopian-Israeli the negev and galilee, received 15,000 youth explored 78 students, committed to giving changing the equation for students achieved extraordinary enriched educational support to new ideas in a short-term back as community professionals, Israel’s disadvantaged youth. levels of academic success with the ensure they can compete equally educational or social program are getting advanced degrees as support of ATIDIM programs. for the prestigious IDF Academic at nITzAnA, our educational ATIDIM Cadets for Public Service Read the evaluation at reserves through PrE-ATIDIM. community in the negev. at Hebrew University. 10 Jewish Agency 2008/09 Performance Report
  8. 8. Last year you partnering to connect and engage new generations helped 8,200 You are leading the way in building Jewish identity, using the power of Israel to infuse tomorrow’s leaders with enduring commitment. young adults from 48 countries participate in a long-term Israel experience. Future impact? 72% will volunteer in Jewish organizations, compared to 25% of non-participants—the foundation for tomorrow’s Jewish communities. Read study highlights at Learn more at 12 Jewish Agency 2008/09 Performance Report
  9. 9. partnering to connect and engage new generations Last year you gave 5,000 youth in the FSU an identity-building, life-defining camp experience. 88% want to come back again next year. The impact on their community? Immeasurable. Our unique camping experience at 40 camps throughout the FSU continues to be an entry into Jewish life for thousands of youth ages 8-17. Just one part of our multiprong approach that uses the power of Israel to ignite connection in communities struggling with a 80% rate of assimilation. Read the evaluation at brIngIng IsrAel Into JewIsh communItIes Around the world 10,000 100,000 11,000 Jews in the FSU learned Hebrew 11,000 youth and 2,000 teachers in 20,000 students in formal Jewish Some youth in 44 and Jewish culture at our ulpanim, and buenos Aires and its surroundings are education, and 2,000 children in More than Jewish day schools and 2,000 more than 20,000 young Jews attending being enriched through our Jewish supplementary Jewish education at 66 youth were connected to Israel in 90 Sunday schools in the FSU benefited Jewish Agency youth clubs were identity programming. centers in Argentina, are receiving the by Jewish Agency professionals in Jewish from the power of our Jewish education. connected to our history and heritage. foundation for building Jewish lives. day schools around the world. More than 1,000 educators served as vital educational resources, including 400 In the FSU, 400 youth enrolled in our SHOrASHIM (“roots”) program and other 3,000-pluseducators Through Machon Institute for Youth Leaders from Abroad, a record 520 30,000-plus students and educators from around the world had online and young volunteers/educators. Holocaust study experiences deepened worldwide Jewish young adults trained to become leaders on-demand access to Jewish Agency their understanding of Jewish identity in had their horizons widened in our for Israel-centered education in their e-learning programming, including 20 the context of 20th century history. advanced training courses in Israel. own communities. courses at our e-academy. engAgIng new generAtIons In trAnsformAtIVe IsrAel exPerIences 47 young north Americans volunteered through the year-long Jewish Agency 20,000 young Jews were introduced to Israel on short-term programs 1,400 young Israelis served in north American summer camps, impacting tens 40,000-plus young no organization is putting and UJC/Federation Otzma program. through the Jewish Agency-supported of thousands of youth by bringing the Jews were transformed Israel into the lives of more Taglit-birthright Israel and our Israel vitality of Israel into the camp experience. by participating in either a short- or young people worldwide. Experience subsidiary, including 1,800 200 young Israelis served in summer camps long-term Israel experience, including young people from the FSU. throughout the former Soviet Union. hundreds of Eastern European youth. Learn more at 14 Jewish Agency 2008/09 Performance Report
  10. 10. Last year you connected 11,000 young partnering to build living bridges into the Jewish future No matter where we live, we all share equally in securing the Jewish future. people from You are transforming “one people” into a dynamic reality. your partnered communities to one another. In a volunteer effort connecting 550 global communities in 45 partnerships with Israel, you’ve set a new paradigm for partnering with mutual impact. Learn more at 16 Jewish Agency 2008/09 Performance Report
  11. 11. partnering to build living bridges into the Jewish future You are reimagining the why, what and way of Israel in the Jewish life of your community. Building on existing community resources through MAKOM, Jewish Agency professionals are collaborating with local leaders in 13 North American communities to imagine new ways to put Israel into the heart of Jewish life. From creating and delivering compelling educational, cultural and travel content, to experiences that deepen individual and community engagement with Israel, each multiyear strategy is unique to the specific community but the content and learning that develops from them are shared beyond. Learn more at forgIng PeoPlehood connectIng for mutuAl ImPAct mobIlIzIng Volunteers A connection to Jewish heritage, identity, Israel and our people Our second annual Israel/Diaspora business-to-business initiative to 70,000-plus Israelis 35 young Israeli volunteers from seven Partnership 2000 regions spent was ignited for 40,000-plus engage business leaders as agents of participated in educational, a year making Israel a vibrant part of individuals in Jewish and social change had a six-fold increase community and economic development 13 north American communities. Israel-oriented programs at our in the number of participants. P2K projects; an additional 130,000 people attended large-scale P2K events. 280 women from to cultural centers in Moscow, St. Petersburg and Kiev. 40,000 people,and Partnership 2000 steering committee communities worked 14 half of whom were youth members from around the world, P2K advance women’s health in Israel, young adults, participated in our professionals, and mayors representing participating in PrOJECT ISHA, a Partnership Living bridge projects to the 45 partnerships from Kiryat Shmona collaborative project initiated by Learn more about how build people-to-people connections. to Eilat, came together to share best the Cleveland Jewish Federation you can connect with the practices and chart new ways to connect at global Jewish partnership. and implemented with the Israel conferences held in Israel prior to the UJC Association of Community Centers. Visit us at gA general Assembly in november 2008. 18 Jewish Agency 2008/09 Performance Report
  12. 12. a message from our leadership implications of the economic crisis in 2009 defining global Dear friends, Administrative Cuts Employee reduction We are the only global partnership governed by Jews In these turbulent from around the world and Israel. The decision-makers that guide our global partnership times, we are all $13.2 million in administrative budget cuts in 2009, 11% reduction in personnel; are your colleagues, your friends. People who care deeply challenged in ways $18.9 cut since 2006 20% since 2006 about the Jewish future. we could not have predicted a year ago. This is not just a global recession—this is a game-changer. No part of the Seats at our global partnership table Jewish world remains untouched. The bold steps that we put in place before and during this economic crisis enabled AlIgnIng to meet the future We are a very different We made these sweeping changes by building consensus the global Jewish partnership to provide a high level of organization than we were just four years ago. Our global and engaging the Jewish world’s most far-reaching and Australia service to our beneficiaries while responding powerfully to partnership has consistently remained a force for change representative Jewish leadership. As we look around 18% Canada emergency situations as they arose. As Israel was forced to specifically because of its capacity to strategically realign to the Jewish Agency global partnership table it is that Europe defend its civilian population in the South, we immediately meet new challenges, to overcome emerging obstacles, to extraordinary range of world views that enriches the Latin America leverage new opportunities. The Jewish future demands it. very nature of our partnership. Today, we are embarking 42% deployed critical resources. We deeply appreciate the South Africa on a process to evaluate the strategic plan in the context response from Federations, United Jewish Communities, As we implemented the strategic plan forged by our global Keren hayesod, the International Fellowship of Christians leadership in 2004, we refocused our work to align with our of today’s realities to ensure that we move forward from a Israel and Jews and the Israeli business community in supporting core competencies and areas where our partnership can strategic rather than a reactive perspective. 40% critical needs, particularly in these financially complex times. achieve the greatest impact. That has always been the strength of this unmatched United States global partnership… the vision to see where we need to go Given the serious repercussions of the economic situation We also set out with the goal to focus our work on on the Jewish Agency and our funding partners, we the Jewish world’s new generations—we have. We set and the will to do what it takes to get there. Our task is to continue to work hard to identify and implement solutions out to reimagine the global Jewish partnership in the prepare the Jewish world’s only global partnership to lead to exact the greatest possible impact from every single context of 21st century realities. We did. Today, we are in the new era. The single most important message that Active throughout Israel dollar spent. Now, as always, our beneficiaries are our most we want you to take away is the indispensable role you partnering Israeli business and philanthropic leaders with and more than 60 countries important priority. In order to maintain budgetary balance, our worldwide partners to invest in initiatives for new play in this extraordinary partnership. around the world, we are we have slashed expenditures by $73.4 million in 2009. immigrants, children at risk, and talented young people Now, as in the past, as each generation drives this the only global organization We continue to make major reductions in personnel. Since from underprivileged regions. We made a commitment to partnership forward it leaves its mark. At this moment of focused on connecting new 2006, our permanent staff has been reduced by 20 percent engage more volunteers in our work. Today, an Israeli public incredible challenge and possibilities, it’s our turn. and as you can see from the charts on the facing page, is paving the way to success for new immigrants. generations to Israel—and administrative cuts have been just as deep. We are now to each other. implementing changes to our organizational structure to To execute the new strategies successfully, we made comprehensive changes in how we do our work. We not only reduce costs further but to increase efficiencies implemented new operational and management systems, by centralizing key functions. While we continue to make Richard L. Pearlstone hagai Meirom Each year we engage thousands a new approach to customer service, and a commitment Treasurer every effort to minimize the negative fallout on our Chair, Board of Governors of volunteers worldwide in our beneficiaries, unfortunately, we have also had to make to measure and evaluate our impact. We created a culture partnership—the only global of transparency and inclusiveness within our management major reductions in essential programs in order to be able partnership singularly focused team and among our lay leadership. We shifted key to responsibly manage these financial realities. decision-making into our major markets allowing our on securing the future of a But as we have for eight decades, we see opportunity in professionals to utilize their critical on-the-ground Shoel Silver Moshe Vigdor connected Jewish people with this moment of change and challenge. We entered this knowledge to add value to our work. We accelerated Chair, Budget/Finance Committee Director General a strong Israel at its heart. time of uncertainty stronger and more focused and are efforts to integrate our global operations and transform our positioned to emerge with even greater capability. service delivery by leveraging technology more effectively. 20 Jewish Agency 2008/09 Performance Report
  13. 13. Management Discussion & Analysis The main fiscal issue for most of 2008 was Almost all this income was derived from the payments by the the collapse in the shekel value of the U.S. dollar Government of Israel in respect to the sale of apartments owned by the Jewish Agency and by some of its major supporters during the first nine months of the year. (hereafter – Amigour Apartments) under an agreement signed in February 1999. Under the terms of the 1999 agreement, this revenue stream is expected to continue for the next six years. Although the majority of the Jewish Agency’s income is received in U.S. dollars, the majority of its expenditures are During 2008, the Jewish Agency’s accumulated deficit in net made in Israeli shekels. unrestricted assets increased by nearly $12 million, from $201 million at the end of 2007 to $213 million at December 31, 2008. During 2008 there were wild fluctuations of the shekel-dollar exchange rate, which resulted in a severe weakening of the The signal achievement of a positive working capital surplus at U.S. dollar against the Israeli shekel during most of the year, the 2004 year end has been sustained in subsequent years. as seen in the table below. Bolstered by the cash receipts from the sale of the Amigour Apartments, the Jewish Agency has enjoyed a substantial The average exchange rate for 2008 was $1=3.59 shekels as improvement in its liquidity over the past several years. The compared to an average exchange rate of 4.11 shekels to the Jewish Agency’s working capital surplus (current assets less dollar during 2007. As a result, the Jewish Agency’s cost in current liabilities) was $49 million at December 31, 2008 as dollars of shekel-denominated expenditures was 14.5% compared to $58 million at December 31, 2007. higher on average during 2008, as compared to the same shekel-denominated expenditures in 2007. The Jewish Agency’s total revenues increased by 7% during 2008 and amounted to more than $641 million, compared to In addition to the challenges encountered as a result of the $600 million in 2007. This is the highest revenue for the Jewish exchange rate, the onset of the economic crisis affected the Agency in more than 15 years. unrestricted, core income of the Jewish Agency, which in 2008 was approximately $6 million lower than its 2007 level. 2008 saw an expansion in the scope of the Jewish Agency’s operational expenses, not including financial expenses, of These two factors were the primary causes of a $29 million more than 11%. These expenditures totaled $660 million deficit from activities incurred in 2008. compared to $594 million in 2007. In parallel, the liability to the Pension Fund increased by The portion of the Jewish Agency’s operational expenses that nearly $41 million. It stood at $197 million at December 31, fell within the framework of designated projects and 2008 as compared to $156 million at December 31, 2007. This allocations, other than projects funded by the grant from the increase remained following a special contribution by the U.S. Government, amounted to $247 million compared to $234 Jewish Agency of $25 million to the Pension Fund. The million in 2007, an increase of nearly 6%. liability grew despite the fact that the actual yield received on At the beginning of the year, a historic agreement was reached the invested assets was nearly double the discount rate used with the kibbutz sector regarding the settlement of the sector’s in the actuarial calculation. debt to the Jewish Agency. As a result, revenues of nearly $31 Revenues from asset realization of $45.4 million were utilized million were booked, with the proceeds used as the seed for the improvement of the Agency’s financial position. money for an endowment fund. Jewish Agency 2008 financial highlights Volatility of the Shekel-Dollar Exchange rate 1999-2008 Working Capital Surplus / Deficit 22 Jewish Agency 2008/09 Performance Report
  14. 14. Trends for 2009 Consolidated The major challenge and focus for 2009 will be to maintain a The MASA program, which is funded jointly with the balance Sheets as of December 31, balanced budget. Due to the worldwide economic slowdown, Government of Israel, and facilitates Jewish students the Jewish Agency is facing three converging challenges: the spending an extended period in Israel, brought more than risk of declining revenues, increasing demands and underlying 8,000 young Jews to Israel during the 2007-2008 academic inflationary forces. In addition to the economic slowdown, the year, maintaining the participation levels of the preceding “Madoff “ fallout has made fundraising more difficult. Steps year. It is not expected to dramatically expand during the 2008 2007 Thousands US $ Thousands US $ have already been taken to enable the Agency to maintain forthcoming year. a balanced budget by encouraging early retirement of As a result of the continued sale of the Amigour liabilities, net of deficit in net assets veteran employees, prioritizing of the Agency’s activities and Apartments to the Government of Israel, and assuming Current liabilities undertaking a major efficiency drive. that the measures taken to maintain a balanced budget Short-term credit from banks 449 270 Despite the existing budgetary pressures, the Agency’s first are sufficient, it is expected that there will be a continued Accounts payable 102,178 121,530 priority for cutbacks will be focused on creating efficiencies. reduction of the Jewish Agency’s debt and an improvement Liability for employee rights upon retirement, net 5,000 25,000 Only when this avenue is exhausted will the Agency’s of its financial position, including its working capital. Current maturities of long-term bank loans and deposits payable 13,107 16,009 programs be affected. Offsetting this, the uncertainties in the financial markets and Total current liabilities 120,734 162,809 the decline in the Israeli economy may have an impact on Where appropriate, the Jewish Agency will continue to strive the performance of the Pension Fund, which would widen Long-term liabilities for the creation of new strategic partnerships with major Israeli the existing unfunded pension liability. Bank loans and deposits payable 53,514 62,282 donors to further support its activities. Liability for employee rights upon retirement, net 238,795 174,233 Other liabilities 15,415 16,880 Total long-term liabilities 307,724 253,395 Minority interest 256 261 Consolidated Deficit in unrestricted net assets (213,185) (200,985) Temporarily restricted for projects 166,117 179,333 balance Sheets as of December 31, Total deficit in net assets total liabilities, net of deficit in net assets (47,068) 381,646 (21,652) 394,813 2008 2007 Thousands U.S. $ Thousands U.S. $ assets Current assets Cash and cash equivalents 85,930 128,234 Accounts receivable 84,109 88,023 Current maturities of investments and other assets - 4,723 Hagai Meirom Shoel Silver Yaron neudorfer Total current assets 170,039 220,980 Treasurer Chair, Budget/Finance Committee Chief Financial Officer Investments and other assets 63,620 31,453 Fixed assets 147,987 142,380 Date of approval of financial statements: June 1, 2009 total assets 381,646 394,813 Please refer to the companion document “2008 Financial Report” to review accompanying notes that are an integral part of these financials. 2008 financial highlights 24 Jewish Agency 2008/09 Performance Report
  15. 15. Consolidated Statements Statements of of Operations for the Year Ended December 31, Changes in Deficit in Net Assets Unrestricted in use Temporarily restricted 2008 2007 For operations Board designation For projects For allocations Total Thousands U.S. $ Thousands U.S. $ Thousands U.S. $ Thousands U.S. $ Thousands U.S. $ Thousands U.S. $ Thousands U.S. $ revenues: Balance at January 1, 2007 (223,479) - 169,334 91 (54,054) Unrestricted donations and contributions: United Israel Appeal, Inc. 122,915 135,439 Keren hayesod – United Israel Appeal 47,129 45,539 changes during 2007: International Fellowship 9,000 3,451 Direct donations & Spirit of Israel 662 1,303 Temporarily restricted donations and Net assets released from restrictions: contributions received: United Israel Appeal, Inc. 134,082 126,077 United Israel Appeal, Inc. - - 93,122 46,440 139,562 U.S. Government grant 37,508 39,827 U.S. Government grant - - 39,827 - 39,827 Keren hayesod – United Israel Appeal 54,394 43,091 Keren hayesod – United Israel Appeal - - 10,994 31,042 42,036 Direct donations & Spirit of Israel 38,003 26,100 International Fellowship - - 4,338 34,888 39,226 International Fellowship 20,515 38,720 Direct donations & Spirit of Israel - - 14,227 11,900 26,127 Other income 177,410 140,224 Total received - - 162,508 124,270 286,778 Total revenues 641,618 599,771 Released from restriction - - (149,454) (124,361) (273,815) Cost of activities and other expenses: Net income for the year 19,439 - - - 19,439 Immigration and absorption department 120,965 114,472 Release of restricted assets depreciation expenses 3,055 - (3,055) - - Education department 106,599 93,886 Israel department 102,517 88,622 Net change during 2007 22,494 - 9,999 (91) 32,402 Amigour social housing 24,061 23,357 Balance at December 31, 2007 (200,985) - 179,333 - (21,652) Allocations and social programs 130,974 127,834 JAFI-wide projects and organizational activities 128,945 101,492 Support functions 34,238 32,365 changes during 2008: Allocation to World Zionist Organization 7,300 7,800 Global management 4,330 4,256 Temporarily restricted donations and contributions received: 659,929 594,084 United Israel Appeal, Inc. - - 59,944 65,852 125,796 U.S. Government grant - - 37,508 - 37,508 Income (deficit) from ordinary operations (18,311) 5,687 Keren hayesod – United Israel Appeal - - 21,639 32,785 54,424 Financial expenses, net (10,304) (5,315) International Fellowship - - 2,034 17,767 19,801 Direct donations & Spirit of Israel - - 28,619 11,312 39,931 Income (deficit) from activities (28,615) 372 Total received - - 149,744 127,716 277,460 Other income (expenses): Income from asset realization, net: Released from restriction - - (156,786) (127,716) (284,502) Sale of Amigour apartments 44,322 43,670 Net deficit for the year (18,374) - - - (18,374) Sale of other JAFI-owned assets 1,069 3,257 Board designation (30,800) 30,800 - - - Increase in pension liability, net (65,950) (27,860) Release of fixed assets and Income from Kibbutz sector agreement 30,800 - restricted assets depreciation expenses 6,174 - (6,174) - - Other income, net 10,241 19,067 Net change during 2008 (43,000) 30,800 (13,216) - (25,416) Net (deficit) income for the year (18,374) 19,439 Balance at December 31, 2008 (243,985) 30,800 166,117 - (47,068) Please refer to the companion document “2008 Financial Report” to review accompanying notes that are an integral part of these financials. 2008 financial highlights 26 Jewish Agency 2008/09 Performance Report
  16. 16. With deepest gratitude, we recognize our valued partners in purpose. You make our history-making the Jewish Agency for Israel and you Partnering with purpose, all over the world. work possible. We would like to thank each donor supporting annual campaigns worldwide, as well as our valued volunteer and professional partners at United Jewish Communities and in Jewish federations across north America, and at Keren Hayesod-United Israel Appeal. Your enduring commitment provides the vital support to ensure the ongoing core work of the Jewish Agency. Together, with our partners worldwide, we are securing the Jewish future. 28 Jewish Agency 2008/09 Performance Report