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March 19, 1999/2 Nisan 5759, Vol. 51, No. 25
Federations report campaign donations up sharply in 1998
Phoenix among cities posting fund increases
JULIA GOLDMAN
Jewish Telegraphic Agency
and LOU HIRSH
Contributing Editor
Things are looking up for North America's most broad-based Jewish fund-raising campaign.
According to final tallies reported earlier this month, UJA Federations of North America's 1998 annual campaign brought in $763 million - up $26 million over 1997 - with 107 of the system's 189 federated Jewish communities reporting significant increases in their individual campaigns.
"Obviously, the prevailing wisdom that the campaign has not been healthy is quite wrong," commented Carole Solomon, the United Jewish Appeal's national campaign chair.
Among the federations reporting sizable increases was the Jewish Federation of Greater Phoenix. Federation Executive Vice President Art Paikowsky said Phoenix's 11 percent rise in contributions - to $4.95 million for the 1998 campaign, from $4.45 million in 1997 - ranked among the top percentage increases in the country.
Paikowsky attributed the Valley's increase to a strong economy and continued local growth, as well as growing awareness of federation programs in the community.
"People are getting behind the federation. They support what we're doing here," he said.
Federation President Neil Hiller said well-attended community events, such as last spring's Israel at 50 celebration, also are helping to raise the Phoenix federation's profile and contributing to the rise in contributions.
In addition, the rate of population and business growth in the last four years has helped make Phoenix among the nation's top five communities in terms of the rate of increase in total UJA-federation campaign contributions, Hiller said, although he noted that per-capita contributions still lag behind other communities.
Hiller added that a good national economy has also boded well for local campaign fund-raising.
"When the stock market is rising and people see that their portfolios are doing well, at least on paper, they tend to be more generous," Hiller said.
The national upswing in fund-raising, Solomon and other UJA officials said, is part of a positive trend they expect to continue into the 1999 campaign.
Money raised in the annual campaign goes to fund community agencies and projects and to the UJA, which provides money for Jewish needs around the world through the Jewish Agency for Israel and the American Jewish Joint Distribution Committee.
The 1998 annual campaign was the first to be billed under the banner of UJA Federations of North America, the new entity formed by the union of the UJA, the United Israel Appeal and the Council of Jewish Federations. The merger is expected to become final at a national meeting of federation representatives in April.
The most surprising success story at federations across the country may be the growing number of alternatives to campaign fund-raising that have evolved over the past two decades. Such alternatives include endowments and other donor-advised funds.
"Different things turn on different people," said Robert Aronson, the executive vice president of the Jewish Federation of Metropolitan Detroit. "Over the years, I think we're going to be seeing slow growth in the annual campaign if we do it right. But we could see dramatic growth in endowment" and capital campaigns.
"The dollars are there; it's a question of finding something that is right for the contributor in the area of Jewish life," Aronson said.
Whereas general contributions to campaigns are pooled and allocated according to prearranged formulas and committee recommendations, new funding options for donors put more decision-making power in their hands.
"Endowments and foundations launched 20 years ago are now in high gear," said Donald Kent, vice president for development and marketing for the Council of Jewish Federations. These new philanthropic outlets attract donors because they offer direct involvement in grant-making, tax benefits and the opportunity for personal recognition. Their contributions in turn provide federations with investment instruments.
Contrary to some fund-raisers' fears that the annual campaign would have to compete with endowments and restricted funds, the funding streams are proving to be mutually beneficial, UJA officials said. In 1998, $230 million was contributed to permanent endowments, while $900 million poured in to more than 7,000 donor-advised funds and foundations. During the same period, $540 million was contributed from endowments and foundations to specific projects and charities, including some secular charities. Of these grants, $140 million went directly into the annual campaign of the federations.
Some local federation leaders attribute new enthusiasm to efforts by community campaigns to strengthen the local Jewish community through both programming and infrastructure. Others attribute the recent improvements to greater personal attention to donors.
JTA correspondent Julia Goldman writes from New York.
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