Sunday, June 28, 2020

JAFI AGONISTES

The Jewish Agency for Israel is facing a financial catastrophe. It's financial resource development arm, the Jewish Agency International Development or JAID, is in ruins, its most recent CEO -- gone, unreplaced. Its partner, the Jewish Agency North America, with an invigorated lay leadership, has an ambitious program of engagement on its emerging agenda...but who will listen let alone embrace? And, while at one time (seems so long ago) it could rely upon the national Jewish organization to be its advocate (with advocacy for the Joint Distribution Committee as well)); that advocacy ended informally years ago and formally last year with JFNA turning that role back to JAFI and JDC, washing its hands, as it were, of responsibility. And the United Israel Appeal, which had dipped its toe into the shallow end of the pool with an embryonic advocacy effort, had all of its functions absorbed within JFNA effectively ending its historic roles beyond vetting federation allocations.

So, at this moment in time, when advocacy, when making the case for funding the Jewish Agency's work was already in crisis as Federation allocations had already collapsed to the lowest levels in history, COVID-19 effectively shut down the federation funding "system." Anyone who does not understand that the impacts of the pandemic will include federations further turn inward in Dystopian ways, just cannot see what is happening in front of their very eyes.

Chevre, these are the worst of times. 

In case you hadn't noticed, these are no longer the times of Max Fisher, z'l, or Marvin Lender, Richie Pearlstone, or of the beloved Rabbi Herb Friedman or Irving Bernstein. This is no longer the era of commanding figures who could or, more important, would rally the communities to a cause greater than themselves supported by the Steve Nasatirs, Steve Hoffmans and John Ruskays, by professionals who understood and could articulate the global needs of the Jewish People. Ain't nobody rallying anybody any more.

These are the times of a collapsed Keren Ha'Yesod, the fund-raising arm for the Jewish Agency around the world other than in the United States -- KH as it is called is a fund-raising arm that raises no funds yet retains its voting privileges for 20% of the Jewish Agency Board. KH's Board includes some wonderful leaders -- men and women who have served on the JAFI Board in some instances for at least 30 years. (Did I mention the funds they raise barely covers the Keren Ha'Yesod organization's overhead leaving almost nothing to allocate to JAFI itself?) Some -- the Koschitzky Family comes to mind -- demonstrate their commitment annually in beautiful ways but KH lay and professional leadership have wholly failed to leverage the signifcant gifts KH has received to broaden the base and increase the pot.

And, lurking always, is the WZO, the World Zionist Organization, surely one of the most bizarre and controlling shadows in organized Jewish life. A decade ago the Jewish Agency leadership determined to reform its organizational structure and eliminate the WZO's particpation in its governance. Placing the negotiation of that reorganization in clearly the wrong hands, JAFI traded millions in annual grants to the WZO in consideration of which the WZO gave up its power to elect JAFI officers -- there was no change in WZO's ownership of the JAFI Board for the WZO continued and continues to appoint 50% of the Board and control 50% of the ownership of JAFI, 50% of the vote and contributes not a dollar to JAFI's Budget. And, in the decade since this a "worst deal of the century," WZO has positioned itself as a direct competitor of the Jewish Agency because: (1) they can; and (2) in Israel "conflict of interest" doesn't appear to exist even as a concept.

This balagan leaves the Jewish Agency facing a most serious financial crisis approaching the catastrophic. Let's review: allocations from the federations through JFNA will approach collapse after year-after-year low point after low point; funding from Keren Ha'Yesod will also reach a nadir; the WZO will continue to fund only its own activities, many of which conflict with the Jewish Agency's own work. This will leave JAFI at the mercy of the Government of Israel and the funds it allocates to the Agency's work on the Goverment's behalf. And, lurking like an immense black cloud over all of this is the JAFI pension debt obligation; the debt about which no one speaks.

Can anything be done to avert the financial catastrophe? I have some thoughts, of course. Ignoring for the moment feasibility:

  • In partnership with the Government of Israel: 
    • Restructure JAFI's ownership
      • Eliminate WZO's ownership, control and appointment power while retaining and assuring JAFI Board membership for Zionist and religious movement constituencies through direct election;
      • The 50% balance of members will be prorated based upon the financial contributions of the federations and KH to the Jewish Agency Budget
    • Restructure JAFI's Pension Obligations:
      • The GOI to assume the current Pension indebtedness
      • Going forward, the Pension offered Agency employees will be consistent with best current business practices
    • Borrow the funds necessary to support a JAFI 3 year Budget
  • In partnership with the JAFI JFNA Board members:
    • Develop a plan for budget advocacy among and within the federations
    • Create and fund the implementation of an annual FRD plan through an invigorated JAID/JAFI NA
    • Led by capacity gifts from the JA Board Chair and Officers, begin an emergency campaign
  • In partnership with the JAFI KH Board members, begin an emergency fund-raising campaign to support JAFI's work and Budget; and
    • Restructure KH governance to create term limits
Ein breira, my friends...ein breira.

Rwexler

9 comments:

  1. Stipulating that your observations are correct and agreeing with your recommendations, who is going to take the lead?

    ReplyDelete
  2. What exactly does JAFI do anymore that is so critical?

    Why are they still needed?

    For Aliyah, where they have been kicked out of the English speaking world and the Ukraine?
    For campus shlichim?
    For “Jewish unity”?
    For Boogie to convene Federations worldwide?
    To invest in many failed experiments in Israel and worldwide, such as the supermarket chain that failed within 12 months, costing the NY and DC Federations about a million each?

    Or for there to be a sinecure for hundreds of ex-Labor and religious Party apparatchniks?

    And is not WZO the ultimate haven for political party cronyism?

    And which of JAFI’s critical functions could not be better absorbed by either the government or a more efficient NGO with better pre-existing governance structures?

    ReplyDelete
  3. Slight correction:
    The agreement, “the worst deal of the century” allowed JAFI to end its annual allocation to the WZO. It also required a split in the leadership in as much as from that point going forward the Chairman of the Executive of JAFI would no longer be the Chairman of the WZO.

    That’s it. Bupkes meets political Zilch.

    The WZO still has 50% of the vote to chose everything including the Chairman and Board of JAFI.

    But if you order today, we’ll throw in a free KH for 50%. The WZO also owns 50% of Keren Hayesod (KH). KH funds the WZO directly.

    If you do the arithmetic, that means that control lies 30% with JFNA, 20% with KH and 50% with the WZO. Correction: 60% with KH.

    In the mean time JAFI doesn’t care anymore about the American delegation with allocations below 80%

    ReplyDelete
  4. Typo
    Effective 60% control lies with the WZO not with KH

    ReplyDelete
  5. To Anon 8:48

    How can we get JFNA to lobby for the deconstruction of JAFI?

    That is a simpler solution to Richard’s roadmap.

    Why should JFNA or American donors be wedded to JAFI any longer?

    JAFI doesn’t even have cute paraphernalia like little blue boxes and tree planting plaques.

    ReplyDelete
  6. How about a JAFI Board Governance composition where JAFI actually appoints a percentage of its own Board members? What a concept! Perhaps then the organization could actually structure itself around prioritized and funded mandates instead of chasing after, and running behind, the parochial whims of its "owners" . . .

    ReplyDelete
  7. The fact remains that JFNA should be involved in the needed changes in JAFI's governance, strategy and funding. Instead, it has abdicated its role and appears to not care about its Israel and Overseas obligations (JDC and World ORT as well as JAFI),
    Instead, it continues to squander resources on its own Israel presence while ignoring the problems of our true operational partners in Israel.

    ReplyDelete
  8. Can anyone explain why JAFI is needed anymore?

    JAFI, WZO and Keren Kayemet were all kept as independent organizations at the formation of the new State in 1948 so that Ben Gurion could have pockets of support and funding separate from the Mapai Party (Labor predecessor) and the government.

    They are remnants of a bygone era.

    Shouldn’t they be absorbed by the government and perhaps some well-focused NGOs with transparent governance?

    And Why is JAFI still engaging in self-dealing real-estate developments like the recent news report of developing the land around Binyanei Haumah in Jerusalem with JNF, or the multi-hundred million dollar buildings around Tel Aviv University (all searchable in the Israeli press).

    Most of these real estate transactions somehow involve land that was transferred to the pension plan with no clear paper trail at the Israel Lands Authority

    ReplyDelete
  9. The Agency has lost its way or more correctly is torn between too many ways, some of which they are I'll suited for from the get go. See my short piece on the subject from last August:

    https://ejewishphilanthropy.com/the-once-and-future-greatness-of-the-jewish-agency-for-israel/

    ReplyDelete