How Revenue is Spent at United Israel Appeal (2022)

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 Israel 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:

• JFNA and UIA operate out of the same office at 25 Broadway, Suite 1700 in NY, NY; while the Jewish Agency for Israel operates out of Jerusalem.
• The JFNA is the primary source of revenue for the UIA.
• The JFNA raised $365 million in 2022, giving $246 million in grants, most  ($169 million) to UIA.
• The JFNA has nearly $200 million in net assets.
• The UIA is housed in the same office in NY as the JFNA.
• The UIA raised about $173 million in 2022, most of which came from JFNA.
• The UIA gave out $173 million in grants in 2022.
• 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 $136 million in net assets.

Key things to know about the Jewish Agency for Israel include:

• they report total revenue of about $800 million in 2021 (nearly $500 million came from a decrease in the pension liability fund) which means the other sources of revenue were about $300 million (and rely on the FJNA and UIA for about $170 million of that);
• the Form 990 (2021) does not show that they make grants; instead they spent about $257 million on 6 expenses:  compensation ($90 million), other expenses ($42 million” described as “other functions” or “other expenses, “Aliyah” ($59 million), “Connecting World Jewry” ($42 million), and “Israel Society” ($24 million); and
• they have $939 million in net assets which was accumulated primarily by not spending as much as they received through the years and through a $500 million adjustment (decrease) in the pension liability fund.

So, if you gave $100 to the JFNA, then $67 went towards grants, primarily ($46) 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 1,350 employees, “Aliyah,” “Connecting World Jewry,” “Israel Society” and about $40 million in expenses not detailed.

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 $12 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, and other program (Aliyah, Connecting World Jewry, Israel Society) and other expenses in Israel.

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

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

To read the IRS Form 990 for the Jewish Agency for Israel (221) for the year ending Dec 31, 2021, click here.