Tough economy increases needs as giving slows, officials say
DEBRA MORTON GELBART
Contributing Writer
There's no doubt the Jewish community has been hurt by the recession. But Jewish nonprofit organizations in the Valley - despite increases in requests for assistance from individuals and families in the past six months - say they are mostly holding their own financially, at least for now.
Adam Schwartz, president and CEO of the Jewish Federation of Greater Phoenix, said it's too early to say whether 2009 allocations to constituent agencies will be reduced, although contributions to this year's fundraising campaign are down 2 percent compared with last year.
"We're doing everything we can to bring in the maximum amount of money to meet the changing needs of the community," Schwartz said. "And while we certainly recognize that the current economic situation is affecting many, we hope our supporters will not forget those within our community who rely on the generosity of strangers to meet their everyday needs."
Donors have until Dec. 31 to contribute to the federation (and other Jewish organizations) to get a tax deduction for 2008.
Jewish Free Loan and Jewish Family & Children's Service in Phoenix have received a joint special allocation of $15,000 from the federation to fund their tzedakah loan and "Helping Hands" programs, respectively. Each agency will receive $7,500. Jewish News reported on Nov. 28 that both programs were rapidly running out of money for the current fiscal year because of increased requests from members of the Jewish community for assistance with paying household bills.
"More than a year ago," Schwartz said, "we launched a process to work with local agencies to continually assess their changing needs. We need to be able to respond to evolving needs and the challenges we're facing." The special allocation to Jewish Free Loan and JFCS, he said, grew out of that process.
Young Jewish Phoenix, which sponsors Mazelpalooza - the Dec. 24 event for young Jewish single adults in the Valley - will donate some of the proceeds from the event to both Jewish Free Loan and Jewish Family & Children's Service, specifically to benefit the organizations' respective tzedakah fund and Helping Hands program.
Although right now many Jewish nonprofits are managing financially, the situation could be precarious months from now. "We're still ahead (in donations) of where we were last year," said Tina Sheinbein, the executive director of Jewish Free Loan, "because some major individual funds were established this year. The prognosis for us between now and February might be OK, but by June, I don't know how well we'll be doing. Even 90 days from now, I'm not sure where we'll be."
Jewish Free Loan is an affiliate agency (rather than a constituent agency) of the federation and receives no regular direct financial support from it. Jewish Free Loan has funded double the number of tzedakah loans since June of this year compared with the same period last year. With the exception of rare special allocations, Jewish Free Loan relies entirely on donations from the Jewish community for its funding.
The Jewish Community Foundation of Greater Phoenix is planning to distribute its competitive grants in 2009 at the same level as this year, said Stu Turgel, president of the foundation. "Although the market has had an impact on the Jewish Community Foundation," Turgel said, "the amount of money allocated for our competitive grant cycle won't change next year."
But for Jewish Family & Children's Service, the outlook is different. JFCS already is struggling to maintain its level of service. "I think it'll be a very rough couple of years coming up," said Michael Zent, Ph.D., the agency's president and
CEO. "We're projecting at least a 25 percent reduction in direct donations for next year. It could possibly be closer to a 50 percent reduction. A number of our programs that rely on donations could be seriously hurt." He said JFCS has begun dipping into its financial reserves to operate.
As a constituent agency of the federation, JFCS does receive an allocation. Zent doesn't know at this point if next year's funding will be less than this year's.
The Valley of the Sun Jewish Community Center is finding that belt-tightening is imperative. "We're struggling to maintain a balanced budget," said Moises Paz, president of the VOSJCC. "We're economizing wherever we can. We've reduced staffing through attrition, saving about $100,000 that way, and we've reduced operating expenses as well."
Congregations are managing, too, but their executives are concerned.
"We have seen a 10 percent increase in requests for dues relief compared to last year," said Nanci Wilharber, executive director of Temple Emanuel in Tempe. "We don't want people to leave our synagogue, so we do our best to work with congregants (who ask for a dues reduction)." She said more congregants than last year also have been asking for assistance with paying household bills, but the congregation is keeping up with these requests through careful financial management.
"We're very judicious with our resources," she said, adding that it's a balancing act between "our own fiscal responsibility and sensitivity to what congregants may be experiencing."
Congregation Beth Israel in Scottsdale also is taking a cautious approach. "I've been working closely with (the board of directors) to proactively review our operations and make adjustments to be prepared for what we are sure will be a tighter budget next year," said Terry Taubman, the executive director. "As part of this, we've not filled various staff openings and each of us is forced to do more with less due to the challenging circumstances."
Beth El Congregation in Phoenix has seen a jump in the number of requests from members for assistance with paying bills, but has not seen an increase in requests for dues adjustments. The congregation is managing financially because of the generosity of a congregant who donated $100,000 during the High Holiday appeal, said Executive Director Anne Schafer. "In spite of the economy, Beth El is doing OK - for now," she said.
Even with economic challenges, Wilharber of Temple Emanuel encourages a positive outlook. "For the sake of the community," she said, "we need to be optimistic, to face challenges together, and to give whatever we possibly can, to smooth this transition (as the economy continues to change)."
