Report of the 2010 Allocations to the Community

Susan Fisher, Federation President
Laurie Barnett, Chair, Allocations Committee
Ron Perry, Co-Chair, Allocations Committee
May 26, 2010

Introduction
In 2010, the Federation was faced with a second straight year of reduced allocations due to the continuing economic slump.  The Annual Campaign closed at $1,410,000, a $55,000 decrease from the actual close of $1,465,000 in 2009.  While this alone puts significant stress on our system, in 2009 the Federation was able to take several steps to mitigate the pain of an 11% drop in the campaign.  The Humanitarian Award Dinner raised $45,000, which was available for distribution, and we borrowed $27,000 from the Federation reserve fund.  In addition, the Israel/Global Jewish Communities allocations were reduced by 25% ($125,000) in favor of meeting local needs, and the Federation budget was cut by $51,000.  In contrast, the collective reductions to all local agencies combined totaled less than $50,000.

In 2010, the absence of additional funding from a Humanitarian Award Dinner, and the undesirability of delving further into reserves, combined with the shortfall in campaign resulted in a total shortage of more than $100,000.  After cutting the Israel/Global Jewish Communities budget so deeply last year, there was reluctance to continue using this allocation as a bank to fund local shortages. 

These factors required the Federation to think creatively about how to best satisfy community needs while staying true to the global mission of the Federation and the wishes of our donors.  In the end, we were forced to reduce most allocations by approximately 9%.

While these allocations are based on the performance of our 2010 Annual Campaign, which began in the fall of 2009 and ended in the spring of 2010, they represent Federation support for the program year beginning in September 2010 and ending in August 2011.

The Process
In January, allocations request forms were sent out to all of our beneficiary agencies and were returned by early March.  Agencies were informed that the campaign at that time was essentially flat and that their requests should reflect that reality, but there were no guarantees. 

In March, subcommittees of the Allocations Committee plus additional community members invited for this purpose made site visits to each beneficiary to hear in a more detailed fashion about the challenges and achievements of each organization.  On March 23, all the site visit groups convened and reported on their visits creating a comprehensive picture of all the accumulated information.  Issues requiring additional clarification were raised and shared with the beneficiaries as needed.

During the third week of April, on successive evenings, every beneficiary came and made a formal presentation to the entire Allocations Committee during which any remaining issues could be explored.  At these meetings it was clearly explained that there was going to be a significant shortage of allocable dollars for the reasons explained in the Introduction to this document.  It was also explained that a formal request had come to the Federation from donors requesting that we once again revisit the question of spending $100,000 annually on security for the JCC and JFS buildings.

On Sunday, April 18th, the Allocations Committee met again to determine the allocations recommendations.  The recommendations were discussed and approved by the Federation Board on May 17th.

The Allocations
Federation allocations can generally be divided into three categories: allocations to support national Jewish agencies, allocations to support the global Jewish community and allocations to support local Jewish needs.

Allocations to support national Jewish agencies
There are three allocations that fall under this category.

Birthright Israel
Birthright Israel is a national program supported by a combination of the Israel government, the Jewish Agency for Israel (JAFI), national Jewish Foundations and Federation allocations to provide a free Israel experience to Jewish college students, age 18-26, who have never been to Israel.  Birthright has provided the first Israel experience for more than 200,000 young Jews from the U.S. and 52 other countries.

Requests to federations for this program are based on a national fair share formula.  While this is an extraordinarily effective program worthy of support, the Federation determined that level funding of $5,000 is the most we could afford in support of this program.

09/10 Allocation--$5,000

10/11 Request--$9,317

10/11 Allocation--$5,000   

Difference 09/10 – 10/11--$0 

     
Jewish Council on Public Affairs (JCPA)
The JCPA is the national umbrella organization for Jewish Community Relations Councils.  They serve as the national voice for federation councils, provide backgrounders and serve as advisors to local communities when issues or activities of concern to the Jewish community arise locally.  This allocation represents our dues and enables us to access the services of the organization.

09/10 Allocation--$1,500

10/11 Request--$1,500

10/11 Allocation--$1,500

Difference 09/10-10/11--$0      

Jewish Federations of North America (JFNA)
JFNA, formerly called UJC, is the national umbrella organization for all federations.  It provides numerous support services for the federation world and serves as the primary policy and professional training body.  In addition, JFNA is the liaison between American Jewry and the Jewish Agency for Israel (JAFI) and the Joint Distribution Committee (JDC), the two primary service organizations to Jewish communities in Israel and around the world.  These two organizations are also the recipients of our Israel and Global Jewish Communities (formerly called Israel/Overseas) allocations.  Among services provided by JFNA that the Ann Arbor community has benefited from in recent years are:  Executive Director search services, Continuing Professional Education seminars for staff, mission planning services in Israel, assistance for local travelers to Israel, sponsoring the General Assembly and Lion of Judah conferences, administering the Partnership 2000 program, hosting the Federation website and providing national marketing and consulting services.

This allocation represents our dues to JFNA, which are decided by a three-year rolling fair share formula based on population and campaign results.  There was an 18% reduction in our dues from 2008 to 2009, primarily due to cutbacks in the national organization.  We had hoped that our dues obligation would be reduced yet again based on campaign results.  However, our results actually matched the national average and so there was no impact on our dues formula.  We have been informed by JFNA that our dues will be unchanged from last year.

09/10 Allocation--$54,979

10/11 Request--$54,979

10/11 Allocation--$54,979

Difference 09/10-10/11--$0

Allocations to support Israel and Global Jewish Communities
A year ago we introduced the term “Israel and Global Jewish Communities” to replace “Israel/Overseas” because it better reflects the true nature of this allocation.  The majority of funding from this line goes to two organizations, JAFI and JDC.  For complete information about the activities of these organizations, go to their respective websites, JAFI.org and JDC.org. 

JAFI has traditionally been responsible for the rescue and resettlement of vulnerable Jewish populations in Israel, immigration services for all other people who choose to make aliyah, support and integration services for new immigrants, preparatory services in those countries Jews are leaving from, and as the liaison organization between Israel and Jewish communities around the world.  In recent years, they have become the primary creator of Zionist Education materials and programming for the Diaspora as well.

In the past year, JAFI has refocused its mission.  With the mass immigrations from the former Soviet Union and Ethiopia completed and a decline in the number of Jews in need of “rescue,” (though smaller instances such as Jewish communities in Yemen and Georgia still come up from time to time) JAFI has moved strengthening Jewish identity and Israel/Diaspora ties to the top of its agenda.  This shift in mission emphasis on the part of JAFI is important, not only because of the work product it represents, but also because it broadens the number of programs that can now legitimately fit under this line.

JDC is the primary global support organization serving at-risk Jewish communities around the world who do not plan to leave their current countries of residence.  Hundreds of thousands of Jews in the FSU, Eastern Europe, South and Central America as well as Asia rely on the services of the JDC for their survival.  JDC also provides outstanding social service programs for vulnerable populations in Israel.

Because JAFI and JDC often provide complementary services to the same populations in and outside of Israel, their programs are well coordinated.

The Israel and Global Jewish Communities allocation is the vehicle through which Diaspora communities fulfill the mitzvah of  “Kol Yisrael Arevim Zeh ba Zeh.” (All Jews are Responsible, One for the Other.) 

A portion of the Israel and Global Jewish Communities allocation is designated by the Ann Arbor Jewish Federation for the support of programs chosen specifically because they reflect the values and interests of our community.  Federation staff and volunteers review the programs, make site visits, and communicate with the programs.  The emphasis of these programs is Arab/Jewish coexistence and addressing the needs of particularly vulnerable populations.  This portion of the allocation is called “Elective Funding” since we elect the programs that are funded.  There has been a gradual shift in recent years to concentrate the programs funded through Elective Funding in our Partnership 2000 region of the Central Galilee in order to strengthen Ann Arbor’s presence in the region and leverage the impact of our funding.

The majority portion of the Israel/Global Jewish Communities allocation goes directly to JFNA for disbursement to JAFI and JDC and is called “Collective Funding” because it is combined by JFNA with the allocations from every other federation in the nation.  The combined funding makes up the bulk of the overall budgets for JAFI and JDC.  The proportional distribution of the funding between JAFI and JDC is negotiated by JAFI and JDC with JFNA.  Traditionally, JAFI has received 75% of the Collective Funding allocations and JDC has received 25%.

Last year we reduced the total Israel/Global Jewish Communities allocation by 25% or approximately $124,000 to $371,543 in order to protect our local services. This is a significant reduction in this area over several years.  For instance, in 2005 we allocated a total of $1,475,000, nearly the same as in 2009.  However, in 2005 the allocation to Israel and Global Jewish Communities was $508,125 or 34% of total allocable dollars.  In 2009, the percentage of dollars going outside of Ann Arbor fell to 28% of the total allocation.  In 2010, this percentage remained at 28%, with overseas allocations being 24% and national allocations being 4%.

The shift over the last years from global to local funding represents the growth of local services and the increased costs of supporting those services.  It is important to note, however, that there has not been a decreased need in the global Jewish community and the Allocations Committee recognizes that we shift funding to meet our local needs at the expense of others.  There are excellent arguments for shifting this balance in either direction and there are strong community advocates for both sides.  The Allocations Committee struggles annually to find the position that best reflects the mission of the Federation and the wishes of our donors, fully aware that it is impossible to satisfy everyone. 
This year the shift in mission emphasis by JAFI allowed the Allocations Committee to use more flexibility in applying some of the dollars that would normally go to JAFI towards local needs that meet the mission of strengthening Jewish identity and ties to Israel.  This resulted in the shift of nearly $20,000 that in the past went to the “Collective Funding” line of JAFI to local Israel-oriented programs.  Half of this was used to restore the Israel Scholarships line that was eliminated last year, since sending more young people to Israel clearly meets JAFI objectives.  The other half was used to create a funding line for the Michigan-Israel Business Bridge (MIBB) which was originally supported by our Federation through a special grant.  The Federation believes that the MIBB has proven itself to be an important force for creating business relationships between Israeli and Michigan companies, helping create jobs for both economies, and is a powerful force for Israel in community relations.  Its work fits both the mission of the Federation and the redefined mission of JAFI.

The “Collective Funding” portion of the Israel/Global Jewish Communities allocation is now $229,300 and the “Elective Funding” portion is $89,500.  Add in $9,700 for Israel Scholarships and $9,700 for the Michigan Israel Business Bridge and you get a total of $338,200.

Even with these innovative applications of funding, the total Israel/Global Jewish Communities allocation was reduced by $33,343 or 9%.

09/10 Allocation--$371,543

10/11 Request--$371,543

10/11 Allocation--$338,200

Difference 09-10-10/11--($33,343)

Breakdown of Elective Funding of the Israel/Global Jewish Communities Allocation

Partnership 2000

09/10 Allocation $26,000

10/11 Allocation $30,000

Partnership 2000 is the primary program through which our community connects to Israel.  Our relationship with Nahalal, our student exchange program, the Israeli teens who participate in the Maccabi games, the presence at Celebrate Israel and our community trips to Israel all take advantage of opportunities made available through Partnership 2000.  We participate in Partnership 2000 by virtue of our relationship with the Detroit Federation, which is the main funder of this relationship.

Our allocation is broken into two parts.  The first part, $10,000, goes to Detroit as our contribution to the overall costs of the program (Detroit funds this program at approximately $1 million.)  The second part, $20,000, is the budget for all of our local Israel-related activities in which Partnership 2000 plays a part.

Welfare Relief in the FSU  

09/10 Allocation  $25,000 

10/11 Allocation  $25,000

This allocation goes to the JDC in support of their relief services for the 240,000 elderly and poor Jews who they serve in the former Soviet Union.

Selah – Israel Crisis Mgmt Center 

09/10 Allocation  $15,000 

10/11 Allocation  $10,000

Selah is a unique program that assists immigrants from all countries of origin coping with life altering tragedies such as terror attacks, illness, bereavement and job loss.  Its client load is 20% immigrants from Ethiopia, 60% from the FSU and 20% from all other countries.  Our allocation helps fund programs for orphaned children being raised by relatives. 

PACT in Netanya (JDC)  

09/10 Allocation  $10,000 

10/11 Allocation  $5,000

PACT (Parents and Children Together) is a multi-year, holistic intervention providing comprehensive educational enrichment and community services for Ethiopian-Israeli children from birth to age six in order to foster successful integration into Israeli society.  Over 700 families use PACT services each year.  PACT is transitioning from JDC to municipal funding and therefore our allocation is being phased out.

Hand in Hand Schools  

09/10 Allocation  $10,000 

10/11 Allocation  $5,000

Hand in Hand Schools are a unique educational model in Israel that serves both Jewish and Arab Israeli students in a dual language curriculum.  Each of the four schools is served by Jewish and Arab co-Principals and each classroom has a Jewish and an Arab co-teacher.  Over 1,000 students are served in the four schools.  Our funding helps support the school in the Galilee.

Ramle Mediation Center  

09/10 Allocation  $7,000 

10/11 Allocation  $7,000

Ramle is a poor mixed-population Israeli city shared by Jewish, Muslim and Christian communities from several dozen countries of origin.  The Mediation Center is critical for training community mediators and engaging in dispute resolution for conflicts that arise both within and between the many communities that live there.  Our allocation makes up almost 8% of the Mediation Center programs for Bukharan and Ethiopian Jews.

Net@  (JAFI)    

09/10 Allocation  $0  

10/11 Allocation  $7,500

Net@: Teaching Tolerance Through Technology, is a new JAFI program in partnership with Cisco that provides intensive technology training and certification for Jews and Israeli Arabs in the Galilee.  The program is designed to promote job training in Israel’s high-tech economy, bridge gaps and encourage dialogue between Jewish and Arab Israeli youth and promote leadership and commitment to community.  Our funding will help support the program in our Partnership 2000 region in the Central Galilee.

Allocations to support local Jewish needs

Security Services
Funding security services has become in recent years one of the most controversial allocations in our community.  Following attacks on Jewish facilities in Los Angeles and Seattle, Federation created a $100,000 allocation line to pay for full-time security guards at the JCC and at Jewish Family Services and any special events during the course of the year.  The allocation has been renewed annually by the Board.

Each year, especially as our allocable dollars shrink and security becomes a larger percentage of the local allocations, there are community members who petition the Federation to eliminate security and use the money to fund program services at the agencies.  Other community members insist that security is essential.  There is also a question about whether Federation is the most appropriate body to determine whether security should be available at these agencies or not.

This year, the question was brought to the Allocations Committee once again.  It was the opinion of the Allocations Committee, later affirmed by the Federation Board, that this decision should not be a Federation decision.  The Federation Board voted that the Federation should exit the security business and that responsibility for such decisions should reside with the agencies that receive the security services. 

Therefore, the decision was made to allocate the amount paid for each of the guards to the agencies served by the guards.  This money will become a permanent addition to the base allocation of the agencies and they can determine for themselves each year whether the funding is best used for security or to fund agency programs according to the wishes of their boards, clients and staff.
 
The actual cost of the guard at Jewish Family Services is $38,000.  That money is being added to the base allocation for JFS.  The actual cost of the guard at the JCC is $52,000.  Since that guard serves both JCC and HDS, the allocation will be split evenly between the two agencies.  If they both determine that continued security is necessary, HDS will give that money to JCC which, as landlord, will continue to employ the guard.  If one agency determines the guard is necessary and the other thinks otherwise, they will need to resolve the issue between them and the Federation will do its best to assist in finding a resolution.

The actual cost of the two guards is $90,000.  Additional security costs for special events will become the responsibility of whatever agency sponsors those events.  Of the remaining $10,000 from the $100,000 allocation, $8,000 will be used to restore Jewish Summer Camp Scholarships, which were eliminated last year. 

09/10 Allocation--$100,000

10/11 Request--$100,000

10/11 Allocation--$0

Difference 09/10-10/11--($100,000)

Jewish Summer Camp Scholarships
Jewish summer camping is a proven vehicle for strengthening Jewish awareness and involvement.  Therefore, scholarships have been provided by the Federation to make Jewish camping experiences, both day camps and overnight camps, available to local Jewish children.  Last year, the need to meet increasing critical human needs with fewer dollars caused us to eliminate this allocation line.  This year, the new approach to security services, as described above, allows us to return this important support to the community.

09/10 Allocation--$0

10/11 Request--$8,000

10/11 Allocation--$8,000

Difference 09/10-10/11--$8,000

Israel Scholarships
The Federation believes that an Israel Experience plays an important role in developing Jewish identity in our youth and in teaching them about their Jewish roots.  For this reason the Federation supports Birthright Israel and has provided scholarships for local youth to participate in Israel programs in the past.  Last year, due to the economic crisis, it was necessary to cut this allocation.  This year, thanks to the new priorities set by the Jewish Agency, the Federation has determined that use of money previously dedicated to JAFI can now be used for this purpose while still supporting the mission of JAFI.  Therefore, this allocation line is being restored and funded through the Israel/Global Jewish Communities budget.

09/10 Allocation--$0

10/11 Request--$9,700

10/11 Allocation--$9,700

Difference 09/10-10/11--$9,700

Chabad of Ann Arbor
Chabad of Ann Arbor is an important element in the life of our Jewish community.  Chabad provides many services for area college students, adult education courses for the Jewish community, Shabbat and holiday services for families who are not members of any other local congregation and a summer camp for young children. This year they added a much appreciated Chanukah Wonderland activities center at the Mall.  Because Chabad receives only a small allocation from the Federation, and has not seen an increase in many years despite their increased services to the community, the Allocations Committee recommends maintaining their allocation.

09/10 Allocation--$5,000

10/11 Request--$10,000

10/11 Allocation--$5,000

Difference 09/10-10/11--$0

Jewish Educators Council
The Jewish Educators Council represents the 127 Jewish educators and 850 students receiving Jewish education in Ann Arbor.  Last year the JEC reformatted its activities from an organization that subsidized local teachers to attend conferences out of town to one that sponsored local workshops for teachers here in Ann Arbor.  The change was forced by the collapse of the Conference on Alternatives in Jewish Education (CAJE) but resulted in enabling the JEC to include more local teachers for less money.  A portion of the JEC allocation is still used to subsidize some teachers at conferences.  The Federation feels the Jewish Educators Council has done an outstanding job of using its allocation effectively.  Even so, it feels it is necessary to reduce the allocation by $2,000, essentially the amount used to subsidize attendees at conferences.  The remaining funding should still allow the local workshops to continue.

09/10 Alloction--$7,000

10/11 Request--$7,000

10/11 Allocation--$5,000

Difference 09/10-10/11--($2,000)

Keshet Ann Arbor
Keshet Ann Arbor is a unique program offering Hebrew language instruction to area high school students in a supplementary school format that is eligible for high school foreign language credit.  This is the only option available for students to study Hebrew language for high school credit.  Keshet is supported by both Temple Beth Emeth and Beth Israel Congregation.  In addition, the families of the 26 students make significant financial contributions ($350 per semester) to help support the program.  Even so, Keshet faced a severe funding shortage this year of approximately $10,000 due to underestimating costs and overestimating their fundraising ability.  This follows a much smaller shortfall a year ago.  The Federation has worked closely with Keshet over the past few months to correct the budgetary errors and hopes that Keshet can operate within its budgetary constraints in the future.

The Federation continues to believe that Keshet is a valuable service to the Jewish community and would like to see it sustained.  The Federation sees no choice but to cover the Keshet shortfall from the Federation Reserve Fund and allow Keshet to start with a clean slate next year because there is no way that Keshet can make up that amount of money.  Nor would it be fair to take these funds from the allocable dollars available to other programs that remained within their budgets.  In addition, the Federation Board will provide a financial overseer in an advisory capacity to assure that Keshet operates within its financial restraints and takes whatever steps are necessary to do so.  It may not be possible to sustain Keshet in the future if it continues to overrun its budget.  Finally, the Federation must ask Keshet to share in the reductions faced by other programs and hopes that money can be made up by adjusting teacher salaries.

09/10 Allocation--$14,000

10/11 Request--$14,000

10/11 Allocation--$12,750

Difference 09/10-10/11--($1,250) 

Hillel at Eastern Michigan University
Hillel at EMU operates on a shoe-string budget in support of 1,000 Jewish students.  Its primary funding comes from the Detroit Federation, which is making substantial funding cuts due to its own campaign shortfalls.  This will place severe strains on Hillel’s ability to serve its students, which is especially difficult since Hillel is virtually the only Jewish presence on the EMU campus.  Hillel has been active in encouraging the creation of a Jewish Studies program at EMU and Prof. Martin Schichtman has been given the title of Director of Jewish Studies.  Hillel is also helping to create a Jewish fraternity and sorority at EMU in the hopes of engaging more Jewish students involved in Greek life.  Hillel notes that nearly 90% of EMU graduates remain in Michigan so its efforts help to build future Jewish leadership locally.  The Federation is making only a 3% reduction in light of the cuts from Detroit.

09/10 Allocation--$12,000

10/11 Request--$15,000

10/11 Allocation--$11,650

Difference 09/10-10/11--($350)

Hillel at the University of Michigan
Hillel at the University of Michigan is perhaps the finest Hillel program in the nation.  It does an outstanding job of serving the approximately 6,000 Jewish students who study there and support approximately 50 different Jewish organizations on campus.  It has a national fundraising campaign that approximates the size of the Federation campaign, but like all other Jewish organizations, Hillel’s fundraising efforts have been hampered by the economy.  In addition, it is facing a 10% cut in funding from the Detroit Federation, one of their most important funders. 
The Ann Arbor allocation is as much symbolic of our appreciation of its outstanding work as it is a meaningful part of the operational budget.  It is directed towards helping to maintain Hillel’s kosher kitchen, the only kosher food available on campus.  The Federation has chosen to maintain the current allocation to Hillel.

09/10 Allocation--$5,000

10/11 Request--$5,000

10/11 Allocation--$5,000

Difference 09/10-10/11--$0

 

Hebrew Day School
HDS shares enrollment struggles with its fellow day schools across the country.  The recession, job uncertainty and the need to reduce costs by families is putting the cost of a Day School education out of reach for many Jewish families who would otherwise choose one.  This trend is especially strong in Ann Arbor because of the good quality of our public schools.  87 students enrolled this school year and HDS was able to open with a balanced budget.  However, further reductions in enrollment are possible next year because of families leaving town for new jobs elsewhere or returning to Israel in the case of Israeli families.  Every lost student is a significant hit to the HDS budget and represents the loss of future income as well.

The entire Federation allocation is applied to financial aid and HDS supplements its financial aid with another $41,000 of its own money.  It is actively exploring new tuition and financial aid models to make enrollment more affordable and lessen its financial aid obligations but there are no easy answers.  HDS is counting on the success of a 36th Anniversary Dinner next year to help provide the financial cushion it needs.

The Federation believes it is essential that Day School education continue to be available in Ann Arbor but does not have the resources to continue to support the school at the same level.  Last year, an additional grant of $10,000 from the Humanitarian Award Dinner subsidized the base allocation of $88,888.  This year, the base needs to be reduced to $81,200, which will be supplemented by $26,000 from the security allocation creating a new base allocation of $107,200.

09/10 Allocation--$88,888 (old base) + $10,000 HAD = $98,888

10/11 Request--$98,888

10/11 Allocation--$81,200 + $26,000 (security) = $107,200 (new base)

Difference 09/10-10/11--($7,688)      $18,312 net base increase

Jewish Community Center
The Jewish Community Center is the “home base” for Jewish communal life and activity in Ann Arbor.  It runs an accredited Early Childcare Center, provides services for all ages from tots to seniors, is home to the Federation, HDS, the Washtenaw Jewish News, Jewish Cultural Society and the Reconstructionist Havurah.  The JCC’s Jewish Book Fair and Jewish Film Festival are two highlights of the Ann Arbor Jewish calendar and the Florence Melton Adult Education program is a prestigious adult education offering available to the entire community.  The ECC, which is the main revenue center for the JCC, is seeing decreased enrollment due to the economy and is generating $30,000 less than in the past.  In addition, the Melton program, which has been subsidized by grants from the Covenant Foundation and the Federation, needs additional income to offset the expiration of those grants.

The primary challenge to the JCC is the cost of maintaining the physical plant, a never-ending task in an older facility.  Last year, the JCC put on a new roof at a cost of $200,000 but may need to use its credit line to continue to finance it.  It may need a new heating plant in the near future.  In order to help meet these costs, the JCC had to raise the rent for its tenants, which has put added pressure on the budgets of the tenants. 
The Federation recognizes that the JCC is the central meeting place in the Jewish community and the operating challenges it faces.  Nonetheless, the reduction in allocable dollars this year necessitates a further reduction in its allocation.  Last year the JCC received a base allocation of $149,940 plus a $10,000 grant from the Humanitarian Award Dinner.  This year the base allocation will be reduced to $137,000 plus $26,000 representing half the security allocation for the building.  This creates a new base allocation of $163,000.

09/10 Allocation--$149,940 (old base) + $10,000 HAD = $159,940

10/11 Request--$159,940

10/11 Allocation--$137,000 + $26,000 (security) = $163,000 (new base)

Difference 09/10-10/11--($12,940)      $13,060 net base increase

Jewish Family Services
Jewish Family Services is a full service human services agency.  It offers an impressive array of services to all of Ann Arbor and is thus able to access grants and generate revenues from multiple government sources as well as community foundations and the United Way.  In addition, its newly received CARF accreditation allows JFS to begin to access revenues from third-party payers for services it previously provided without full compensation.  JFS is an efficient and nimble organization, able to respond quickly to needs as new circumstances arise and to utilize its existing resources to great effect.  JFS serves as the first responder to community needs resulting from the recession and the shrinking job market.  This has put added burdens on its staff and resources as JFS strives to meet the additional client needs caused by a new group of chronically poor clients as opposed to newly poor.  In addition, Jewish clients tend not to come to JFS until all other resources are used up making their needs more urgent than that of others.  Last year the Federation helped JFS to meet these needs by creating an Emergency Assistance Fund of $15,000 which was available to JFS as necessary to meet extraordinary needs.  $5,000 from this fund remains.

This year JFS requested an additional $45,000 to fund a transportation coordinator and an additional staff person for crisis management.   While the Federation applauds JFS for its efforts, it remains bound by the funding limitations of the Annual Campaign.  If JFS is to be able to expand its services to address all the new needs it hopes to meet, it may have to reduce services in other areas to free up the necessary resources.  In the future it will also have the option of applying the $38,000 for security that is being applied to its base allocation to its staffing needs in lieu of a security guard if that is what it feels its priorities dictate.

Last year JFS received a base allocation of $88,104 plus a $10,000 grant from the Humanitarian Award Dinner.  This year, the recommended base allocation for JFS is $80,500.  In addition, JFS will receive the $38,000 previously assigned to its security guard as part of the base allocation to use as it wants.  This creates a new base allocation of $118,500.

09/10 Allocation--$88,104 (old base) + $10,000 HAD = $98,104

10/11 Request--$143,000

10/11 Allocation--$80,500 + $38,000 (security) = $118,500 (new base)

Difference 09/10-10/11--($7,604)      $30,396 net base increase

Michigan Jewish Professionals  (JPros)
Two years ago, a grant from the Federation funded the beginning of a new organization serving all the Ann Arbor Jewish community professionals.  Under the leadership of Robin Axelrod and Mira Sussman, JPros has developed into an important vehicle for the professional staffs of our agencies, congregations and organizations to come together, work more synergistically, learn from one another and share mutual goals and frustrations. 

JPros has come to the Federation seeking a small annual allocation to enable them to continue the work that they have been doing and continue to provide in-service programs for the professionals at a time when professional development lines in budgets are all but disappearing.  The Federation, despite the funding restraints this year, recommends a $500 allocation in recognition of the efforts of our community professionals.

09/10 Allocation--$0

10/11 Request--$1,500

10/11 Allocation--$500

Difference 09/10-10/11--$500

Reserve for Unmet Pledges
The Federation bases its allocations on the pledges of its donors.  While allocations are determined in May, pledge payments are not due until December 31.  Therefore, the ability of Federation to pay out the promised allocations depends on donors fulfilling their pledges.  Each year, for a variety of reasons, a number of pledges are not paid.  To cover this shortfall the Federation holds back a reserve for unmet pledges that it can draw from to fulfill its obligations to its beneficiaries.

The number of unpaid pledges has slowly been increasing over the past three years testing the limits of the reserve fund.  In 2009 the amount in the fund was increased from $25,000 in light of the increasing number of defaults.  On the advice of the Finance Committee, the Federation is maintaining the Reserve at the current amount.

09/10 Allocation--$40,000

10/11 Request--$40,000

10/11 Allocation--$40,000

Difference 09/10-10/11--$0

The Jewish Federation and the Jewish Community Foundation
The Jewish Community Foundation is a function of the Jewish Federation of Greater Ann Arbor and therefore its operating costs are included in the allocation for the Jewish Federation.

The Federation is charged with being the primary fundraising organization for the Jewish community, operating the Jewish Community Foundation, being the umbrella organization for all Jewish communal agencies and the liaison to other Jewish communities and organizations across the nation and around the world.  Federation also administers certain community-wide programs like PJ Library, the Community Relations and Israel Advocacy functions and sponsors community events like the Main Event, Celebrate Israel and the Biennial Humanitarian Award Dinner.  In addition, during this past year the Federation initiated the B’nai Tzedek Youth Philanthropy program, a student exchange program for local teens in Israel and is working with Temple Beth Emeth to organize a community bike trip in Israel.

The Jewish Community Foundation provides the opportunity for community members to create planned gifts and endowments for the long-term support of all local Jewish communal congregations, agencies and organizations as well as the Federation.  The funds have been managed and invested by the Detroit Federation Foundation and administered by the staff of the Jewish Federation of Greater Ann Arbor.  The process of transferring the Foundation investment to the Pittsburgh Federation Foundation in order to take advantage of their software system will provide significantly better and more timely services to fund holders.

Last year, in light of the reduced community resources, the Federation cut its budget by $51,000, several times the reductions imposed on any of its beneficiaries.  The community shaliach and another half-time position were eliminated and responsibilities spread to the remaining staff.  Despite taking on additional responsibilities, staff salaries were frozen, certain benefits reduced and all conference and travel and professional development eliminated. While the final reduction to the agencies last year represented only about one percent of an agency’s total budget, the reduction to the Federation budget was a full eight percent. 

Once again, the Federation will share in the need to tighten its belt.  Despite increases in rent and other fixed costs, the Federation will eliminate another half-time position and again spread those responsibilities among remaining staff.  This year, those staff will receive some compensation for the extra requirements placed upon them.  Even so, the Federation request will be $23,532 less than the prior year for a total of $535,000. 

The Federation allocation is divided into four distinct areas: Campaign/Fundraising, Program Services, Administration and Jewish Community Foundation.  The breakdown of the budget between these areas is as follows: 
Campaign/Fundraising – $142,495
Program Services - $158,711
Administration - $142,520
Foundation - $91,274

We would like to note once again that while the Federation allocation to our agencies makes up only a small portion of the agency budgets, the allocation to Federation makes up the totality of the Federation budget.  It commends the Federation for its leadership in cost reduction while maintaining its commitment to servicing the community.

09/10 Allocation--$558,532

10/11 Request--$535,000

10/11 Allocation--$535,000

Difference 09/10-10/11--($23,532)

Conclusion
Jewish communities everywhere are facing new economic realities.  Campaigns are down and resources have returned to the levels of several years ago while the infrastructure we need to maintain was expanded during more prosperous times.  We all need to adjust to these new realities and understand they may be with us for the foreseeable future.

Having fewer dollars does not necessarily mean that we cannot continue to grow as a Jewish community.  It does means we need to focus more intently on our priorities and be more creative in how we think about and how we offer the services that are important to our community.

Ultimately, it is the Federation Annual Campaign that is the engine of Jewish community life today and the Jewish Community Foundation that is the promise of financial stability for the future.  When we as donors reduce our commitments to the Annual Campaign we also reduce our abilities to meet our community’s needs.  The two are inextricably linked.

It is the Federation’s firm belief that our Jewish community will emerge from this period smarter and more efficient than we have been in the past and with a greater commitment to sustaining and growing the extraordinary Jewish life we have created and enjoy here in Ann Arbor.

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