The folks at eJewish Philanthropy made a valiant effort to get to the bottom of the Line of Credit matter reported here uesterday. They asked JFNA if they wished to respond to them (as opposed to respond directly to the Blog). Here is the response that eJewish Philantghropy received from JFNA:
“Here are the facts: JFNA obtained a line of credit in 2006 during the Operation Promise campaign in anticipation of emergency cash needs for the expected mass influx of Ethiopian Jews to Israel. The line of credit was rarely used, and consequently was reduced over the years in accordance with good business practices. The line of credit was up for renewal in 2010. Although the issuing bank was willing to renew the line of credit, it requested new covenants in light of the new banking environment. Because of these new covenants and because the line of credit was rarely used, JFNA decided not to renew the line of credit. This decision was made after full consideration by our professional staff and knowledgeable lay leaders with financial expertise. JFNA notified our board of this decision in a timely manner at the November 8, 2010 Board of Trustees meeting. Should we need a line of credit in the future we do not at this time anticipate a problem in obtaining it.”
This "answer" puts my listening "skills" at issue -- I attended the November 8 Board meeting and heard nothing about the non-renewal of the JFNA Line. (I admit that by the end of that meeting I was in a stupor from the soporific agenda and presentations and may have missed it -- but I don't think so.)
As eJewish Philanthropy points out today -- www.ejewishphilanthropy.com -- JFNA chose not to respond to the issue raised by the Board Chair's statements at the last meeting that if JFNA at calendar year-end could not repay funds "borrowed" from the overseas allocation to satisfy JFNA costs and expenses, it would turn to its line of credit. No line of credit -- no can do.