Sunday, July 24, 2016

CHAIRMAN FOR LIFE

Recently, our friend, Rabbi Yechiel Eckstein, Founder and, apparently, sole "decider" for the International Fellowship of Christians and Jews, announced that his organization (or, perhaps, he used the imperial "we"...or, more likely, just "I") would allocate $100 million to the JDC over the next, I think it was, five years, for programs, I would guess, that IFCJ Chairman for Life Eckstein determines. Don't get me wrong: it's a grand gift, and, if true, we'll see if the "deal" lasts five years without the Rabbi demanding "more" of something to continue.* Then, this week, Rabbi Eckstein began his assault on the Federation system in a puff piece appearing in Haaretz and an article in ejewishphilanthropyhttp://ejewishphilanthropy.com/ecksteins-fellowship-set-to-challenge-federations-for-local-jewish-dollars/**

In all events, I'm sure that the Joint and American philanthropists will become aware that consorting with the IFCJ always and ultimately comes with a price. An organization called "Ministry Watch" did an analysis in 2013:

"Outrageously High Fundraising and Compensation Costs - What You Need Know About Those Emotional TV Commercials Asking You to Help Impoverished Jews

"In the same way, deacons are to be worthy of respect, sincere, not indulging in much wine, and not pursuing dishonest gain." 1 Timothy 3:8
Many have no doubt seen the rather frequent and emotion-laden advertisements on Fox News asking for your donations to help struggling Jewish people around the world. The ads come from the International Fellowship of Christians and Jews (IFCJ) founded and run by Rabbi Yeckiel Eckstein. Recent ads have featured what the ministry claimed were elderly holocaust survivors in the former Soviet Union and poor Jewish people in Israel. Rabbi Eckstein is said to now have a database of over 1 million Christians who donate to his ministry, so it is clear the ads are effective in stimulating well-intentioned people to donate their money. In the most recent year, the ministry raised over $113 million dollars and millions were indeed spent meeting the needs of Jews around the world. Unfortunately, television advertising is quite expensive, which is why few ministries utilize it. Using the ministry's audited financial statements, MinistryWatch.com calculates the ministry's fundraising costs amount to 14% of its revenues, almost three times the level of the average ministry in our database. Generally Accepted Accounting Principles (GAAP), however, allow non-profits considerable leeway in how they handle fundraising expenses. Some observers put IFCJ's fundraising costs at as high as 39% after adjusting the accounting information to more realistically reflect the ministry's actual fundraising costs. This is an absurd amount of money being spent on fundraising and donors should be aware that so much of their gifts are being diverted from helping suffering Jews to instead raise more money for IFCJ.
Additionally, Rabbi Eckstein's total compensation in 2012 amounted to over $1.2 million! Moreover, compensation paid to two of Rabbi Eckstein's daughters and a son-in law amounts to over $250,000. Combining the adjusted fundraising costs noted above and his compensation, over 40% of a donor dollar goes to fundraising and Rabbi Eckstein's excessive compensation. While IFCJ clearly also does considerable good work, donors can certainly get a much better "bang for their buck" by supporting other ministries serving the Jewish people. We noted recently the good work of the Joshua Fund and would recommend donors consider it along with Bridges for Peace and Christians Friends of Israel. These are all much smaller ministries (largely because they do not use emotional TV advertising), but which send more of the donor's gift to help the actual needs that exist, while simultaneously avoiding paying their founders and CEO's exorbitant compensation. 
Given IFCJ's $116 million in annual revenues, almost all coming from small donors, it is clear that many kind-hearted Christians will respond to emotional appeals for funds believing their hard-earned money will be going mostly to good works. Unfortunately, Rabbi Eckstein's stewardship of IFCJ leaves much to be desired and over 1 million donors to IFCJ are currently being duped. Passionate pleas for help must be measured against a rational understanding of the full picture of any ministry's activities. This is where MinstryWatch.com can help donors who wonder whether they should respond to such approaches that leave out important information, like the exorbitant compensation paid from donor's donations and the massive amounts spent on TV advertising and other methods of raising funds." http://ministrywatch.com/articles/ifcj.aspx
Could it really be true that Eckstein's compensation in 2012  "amounted to over $1.2 million?" I guess that it's possible under a comparative compensation argument that goes something like this: "If Jerry Silverman could earn $765,000, what's so bad about Yechiel stuffing his pockets to the tune of $1,200,000?" Or, as we've noted before, the old Babe Ruth story: when asked whether he felt badly that he earned more than the President of the United States, he answered: "Why? I had a better year." If the numbers are true, his IFCJ has 1 million donors -- our entire federation system -- a little over 300,000 (+/-). 

Shame on him, but shame on us. Oh, I forgot, neither Eckstein nor our leadership have any shame when it comes to compensation.

Rwexler

* Does JDC care where its money comes from? No more than most non-profits.
** It will be hard to believe but this Post was written over one month ago and merely scheduled for publication today.

12 comments:

Anonymous said...

Having traveled with Eckstein, I would add to the salary listed a probable unlimited budget for 5 star restaurants and hotels. 1st class air travel is a given. I don't think the smiling one, or any of the others on the Forward list, has it quite that good.

Anonymous said...

It will no doubt end badly with JDC just like with all the others - only a matter of time until an ever-growing ego appetite leads to divorce.

Anonymous said...

This organization's outrageous behavior may make it worse than ours but that doesn't make us any better. We are bad enough and we should know better which probably makes us worse than them at the end of the day. Does the Chair have anything to say about that other than that we rely on our professional staff?

Anonymous said...

Clearly Eckstein in the highest paid rabbi in the world!

Anonymous said...

The chair apparently has nothing to say about anything.

Anonymous said...

JFNA is effectively leaderless. That is to say it has a Board Chair with an expressed disinterest in performing his governance responsibilities with regard to a CEO who has proved to be day-in and day-out clueless. JFNA leaderless and clueless, what could be worse?

Anonymous said...

Ministry watch does not understand that IFCJ funnels it funds through an Israeli Amuta Keren Yedidut (holy owned and managed by the Admor Eckstein) that siphons off almost another 15% in overhead including wages and consultants

http://documents.guidestar.org.il/PDF/newfiles/fin/2014/117-99-2015-0226176.pdf

It's good to be king.

Anonymous said...

Eerily similar to accusations leveled against Joel Osteen and his "prosperity gospel." NW estimated at $56 million and lives in a home estimated to be worth $10.5 million. Or better yet, do we remember Prestor Creflo Dollar telling his flock that buying a Gulfstream G650 was necessary to help spread the word of God?

Anonymous said...

According to their 990's the IFCJ has raised over $1.4 billion over
the last 10 years for Israel, Jews in the FSU and in other communities
throughout the world. While JFNA, JAFI, JDC, ORT and other
organizations are raising less money, The Fellowship has raised more
money over the last 10 years, not taking any resources from the Jewish
community, yet all of its proceeds going to Jewish agencies or
directly to the people who need it. Egos aside, the impact of their
dollars can stand toe to toe, if not be viewed as more efficient and
more effective than some of our communal institutions delivering those
services. So, let's be sure that when we need to be so critical, we
really dig deep. We'll see that Rabbi Eckstein's salary is closer to
$460K, the IFCJ Board is playing catch up on his retirement fund and
with an average gift of $76 to realize $140 million per year, you bet
television, radio and direct mail cost more than the way some other
fundraising organizations raise money. But those who are criticizing,
certainly do not have a decade of sustained, increased results and the
kind of measurable impact IFCJ has demonstrated led by Rabbi Eckstein.
Maybe, just maybe, we can learn something.

Anonymous said...

It's a shame that Richard and others are playing the overhead-game, precisely when we need to steer everyone away from that concept.

Anonymous said...

This hasn't been about any "overhead game," it has been about the credibility of our non-profit organizations when leadership approves or does;t actually approve the payment of egregious amounts of compensation to its chief professional officers while those further down the professional organizational chart are literally living on the "leftovers." It's shameful that there are those out there, like the last Anonymous (9:49) who actually believe that they can stifle this discussion on the basis that it's about "overhead" the discussion of which is barred.

Anonymous said...

In my State, and many others of which I am aware, this organization would be stripped of its non-profit status and its Board (is there a Board?) sued for its approval of a salary out of bounds with any and all propriety.