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May 9, 2003/Iyar 7 5763, Vol. 55, No. 37
Federation cuts back
Campaign shortfall means reduced workforce, allocations
BETH OLSON
Staff Writer
A shortfall in the Jewish Federation of Greater Phoenix's 2002 Annual Campaign has resulted in a 24-percent reduction in personnel at federation, as well as a decrease in fund allocations to local, national and international organizations.
Contributions from the annual campaign are directed into three segments - monies sent to national and international organizations, including Israel; monies allocated locally to federation's constituent agencies; and federation's operating budget.
The 2001 Annual Campaign generated more than $5.1 million; the 2002 campaign collected less than $5 million. The shortfall of $219,820 will result in a reduction in funding of about $70,000 apiece to national and international organizations, local organizations, and federation operations, according to Fred Zeidman, assistant executive director.
An additional blow to the federation budget, according to Vicki Cabot, federation president, is a marked increase in the cost of providing medical benefits to employees.
"That was the straw that broke the camel's back," said Cabot.
Federation cut back 24 percent of its workforce, including both full- and part-time employees, effective April 28. Details about the positions being eliminated or the total number of current staff members are not being released, according to Shirley Norris, federation marketing director.
A recent printout from the federation's Web site listed approximately 30 staff members.
There will be additional federation budget cuts that have yet to be determined, according to Zeidman.
"We have to be fiscally responsible and in order to do that, we have to reduce our budget," Cabot explained. "That meant reducing our staff, our most valuable asset."
Campaign funds allocated to local organizations are divided among federation's 11 constituent agencies: Bureau of Jewish Education; Council for Jews With Special Needs; Hillel Jewish Student Center; Jewish Family and Children's Service; Kivel Campus of Care; The King David School; Phoenix Hebrew Academy; Pardes Jewish Day School; Tri-City Jewish Community Center; Va'ad Hakashruth; and Valley of the Sun Jewish Community Center.
Spokespersons from two constituent agencies declined comment until allocations are determined. Information about the allocations to constituent agencies is expected to be available at the end of June, said Norris.
"We've been telling the agencies since the beginning of the year we knew we were going to have a shortfall," said Cabot. "We've tried very hard to keep them apprised of our financial situation as things have unfolded."
Funds allocated to national and international organ-izations are 35 percent of the annual campaign, a percentage the executive board of federation decided to keep intact despite the shortfall "affirming that we have a commitment to Israel," said Cabot.
The financial struggles of nonprofit organizations are a result of the weak economy, according to Cabot.
"The economy is not doing well. Unemployment is high," said Cabot. "Everybody is looking for ways to do things better, differently, (to) be more efficient in the use of their dollars and their resources and we're no different than anybody else."
The 2003 campaign has generated $3,995,509, which is $38,000 less than the same time last year; however, there has been an 8.36 percent increase per pledge card, according to Norris. The 2003 campaign will close on Dec. 31 of this year.
Contact the writer at beth_olson@jewishaz.com.
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