Where Does $100 to United Israel Appeal Go (2021)?
United Israel Appeal (UIA) – a 501 (c) 3 based in New York (and an affiliate of the Jewish Federations of North America) is responsible for the allocation and oversight of funds raised by the Jewish Federations of North America and expended in Israeli by its operating agent, The Jewish Agency for Israel (a 501 (c) (3) based in Jerusalem.
So, there are three related organizations to keep in mind:
- Jewish Federations of North America (JFNA)
- United Israel Appeal (UIA)
- The Jewish Agency for Israel
Key points to remember include:
- The JFNA is the primary source of revenue for the UIA.
- The JFNA raised about $265 million in 2021, giving $217 million in grants, most to UIA.
- The JFNA has $126 million in net assets.
- The UIA is housed in the same office in NY as the JFNA.
- The UIA raised about $149 million in 2021, most of which came from JFNA.
- The UIA gave out $152 million in grants in 2021.
- The UIA sends virtually all revenue in the form of grants overseas by allocating the funds to UIA’s overseas operating agency, the Jewish Agency for Israel.
- The UIA has $141 million in net assets.
Key things to know about the Jewish Agency for Israel include:
- they report total revenue of about $400 million annually and rely on the FJNA and UIA for about $150 million of that;
- the Form 990 (2019) does not show that they make grants; instead they spent about $400 annually on 6 expenses: compensation ($88 million or 23% of revenue), other expenses ($84 million or 22% of revenue), “allocation and social” expenses ($77 million or 20% of revenue), pension fund liabilities ($57 million or 15% of revenue), other expenses ($48 million or 13% of revenue), and immigration and absorption ($42 million or 11% of revenue); and
- they have $237 million in net assets.
So, if you gave $100 to the JFNA, then $81 went towards grants, primarily to the UIA. Since, UIA had virtually no functional expenses, then most of the grant money awarded from the JFNA to UIA was spent on grants to overseas organizations via the Jewish Agency for Israel who spent the money on compensation for the 1,400 employees, fund pension fund liabilities, immigration and absorption costs, “allocation and social” costs, and other expenses.
In summary, if you want your donation dollars to go furthest, make a donation directly to the Jewish Agency for Israel (you will avoid the $15 out of every $100 used by the JFNA to cover operating expenses). But, know that those dollars will more than likely be used for compensation, pension fund liabilities, the Israel Experience, immigration and absorption costs, and other expenses in Israel.
To read the IRS Form 990 for UIA (2020) for the year ending June 30, 2021 click here.
To read the IRS Form 990 for the JFNA (2020) for the year ending June 30, 2021, click here.
To read the IRS Form 990 for the Jewish Agency for Israel (2019) for the year ending Dec 31, 2019, click here.
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