Where Does $100 to the Jewish Federations of North America Go? (2022)

The Jewish Federations of North American (JFNA) is a New York City-based 501 (c) (3) that represents 146 federations, more than 300 network communities and 30 Jewish community foundations (that are separately incorporated).  With 174 employees, JFNA is primarily engaged in fundraising and awarding grants (primarily to United Israel Appeal – a wholly owned subsidiary organization that files a separate Form 990, and the Joint Distribution Committee).

REVENUE AND EXPENSES

In 2022, JFNA raised $365 million which primarily came from contributions ($357 million of which $8 million were government grants), program service revenue ($2 million), and gain on the sale of assets and investment income ($6 million).

Expenses totaled $285 million – 78% of revenue – and can be viewed two ways:  by broad general category (grants, program services, fundraising, and management) or by specific line item category (i.e.grants, compensation, office-related, travel and conferences, fees for services, etc). Both ways provide beneficial information with the latter approach providing more detail on how revenue was spent.

Expenses by Broad General Category

The $285 million in expenses were categorized as follows:

• $245 million (67% of revenue):  Grants
• $ 29 million (8% of revenue):  Program Services
• $ 10 million (3% of revenue):  Management
• $   1 million (less than 1% of revenue):  Fundraising

Using the above information, $100 in revenue was spent as follows:

$100:  Revenue

-$ 67:  Grants

-$  8:  Program Services

-$  3:  Management and Fundraising

$ 78: Total Expenses

 $ 22:  Revenue Remaining:  To General Fund

As illustrated above, $67 out of every $100 in revenue was used for grants while $11 out of every $100 for program services, management and fundraising.

Unspent revenue – $80 million (22% of revenue) – was allocated to the general fund.  After making adjustments for unrealized losses on investments ($16 million) and  $5 million in changes in net assets, JFNA reported $197 million in net assets at year-end (compared to $129 million the previous year).

Expenses by Specific Line Item Category

The $285 million in expenses were allocated as follows:

• $245 million (67% of revenue):  Grants
• $ 22 million (6% of revenue):  Compensation-related expenses
• $  6 million (2% of revenue):  Fees for Services (primarily other fees – no detail provided)
• $  6 million (2% of revenue):  Office-related expenses
• $  3 million (1% of revenue):  Travel and Conferences
• $  1 million (less than 1% of revenue):  Advertising
• $  2 million (less than 1% of revenue):  Other Expenses

Using the above information, $100 in revenue was spent as follows:

$100:  Revenue

-$  6:  Compensation-Related expenses

-$  2:  Fees for Services

-$  2:  Office-Related Expenses

-$  1:  Travel and Conferences, Advertising, and other expenses

-$ 11:  Total Expenses

 $ 89:  Revenue Remaining

-$ 67:  Grants

$  22:  Revenue Remaining:  to General Fund

As illustrated above JFNA spent $11 out of every $100 on expenses related to running the organization and $67 out of every $100 on grants.  The largest overhead expense is for compensation for the 174 employees who received $22 million in compensation, which equates to an average compensation of $126,000.

GRANTS

JFNA awarded $248 million in grants in 2022, most of which ($231 million ) went to four organizations:

• $169 million:  United Israel Appeal
• $ 56 million: Joint Distribution Committee
• $  6 million:  Secure Community Network, of NY, NY
• $  3 million:  American ORT, of NY, NY

The above organizations are classified as domestic organizations but it is important to point out the above organizations passed the funds through, primarily to Israel.

JFNA reported making 151 grants greater than $5,000 to 151 domestic 501 (c) (3)’s and government organizations (including the four grants listed above). The two largest are listed above. The next five largest domestic grants were made to:

• $250,000:  Jewish Family Services of Metro Detroit, of Bloomfield Hills, MI
• $250,000:  Parker Jewish Institute for Health Care and Rehabilitation, of NY, NY
• $250,000:  UJA Fed of NY, of NY, NY (note: UJA Fed of NY gave JFNA $50 million in grants in 2022)
• $187,500:  Goodman Jewish Family Services of Broward, of Davie, FL
• $157,000:  Jewish Family Services of Central NJ, of Elizabeth, NJ

ASSETS, LIABILITIES, AND NET ASSETS

JFNA reported total assets of $338 million at year-end (June 30, 2022) on the IRS Form 990 which were primarily comprised of receivables ($210 million) and cash and securities ($123 million).

Liabilities totaled $141 million, most of which ($105 million) were reported as “other liabilities” and are primarily amounts due to related entities,

Net assets were $197 million at year-end, $145 million of which are permanently restricted and $52 million unrestricted.

SUMMARY

JFNA is primarily engaged in fundraising and raised $365 million in 2022, 67% of which they awarded in grants, primarily two two organizations:  United Israel Appeal (a wholly owned subsidiary) and Joint Distribution Committee. Although these organizations are classified as domestic on the 990, the grant monies listed on the respective 990’s indicate the funds went primarily to organizations in Israel.

JFNA spent $11 out of every $100 on support functions with compensation as the largest expense. The average employee received $126,000 in total compensation although only 45 employees received more than $100,000 in total compensation.

$22 out of every $100 raised (or a total of $80 million) was added to the general fund in 2022.

On the balance sheet, assets are concentrated in receivables and $111 million in “other liabilities” are primarily amounts due to a related organization,   JFNA has $197 million in net fund assets.

To read the IRS Form 990 (2021) for the year ending June 30, 2022, click here.