(U.S.) Federal prosecutors secured guilty pleas Friday from a Tel-Aviv based banker and a New York based rabbi for their involvement in a decade-long international tax-evasion scam centered around an Orthodox Jewish sect that defrauded the U.S. government of millions in tax revenue.

Joseph Roth, 66, an account manager for Israel-based United Mizrahi Bank, and Rabbi Moshe Zigelman, 60, admitted to their parts in a scheme in which people made bogus tax-exempt donations to charitable organizations related to Spinka, an Orthodox Jewish sect.

Read more from the Los Angles Times.

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We often speak of the Millenial generation and their distancing from the current structures of the Jewish communal world while blazing their own paths. Now a look at a recent study of their parents’ generation.

America’s baby boomers are in a collective funk. Members of the large generation born from 1946 to 1964 are more downbeat about their lives than are adults who are younger or older, according to a new Pew Research Center Social and Demographic Trends survey.

Not only do boomers give their overall quality of life a lower rating than adults in other generations, they also are more likely to worry that their incomes won’t keep up with inflation — this despite the fact that boomers enjoy the highest incomes of any age group.

And what about the implications for fundraising from this demographic?. According to the Agitator:

Make no mistake. When the largest and most wealthy generation of donors is in a near-Prozac stage and scared to death of their financial future in a society they perceive is going to the dogs, it’s not good news for fundraisers.

Acquisition suffers because they’re reluctant to make new commitments. Retention suffers because the generally skeptical nature of Boomer generation is turbo charged by fear of the future…In short, they’re skittish, disappointed, and they bail far more quickly than either the Seniors or the Newbies.

Is it any wonder acquisition and retention rates for many organizations hit the downward skids at the same time the Boomer generation succeeded the blindly-loyal Seniors as the majority of America’s donors?

You can read more from the Pew Research Center here. And we’ll keep you posted as more information is released this summer about current donor trends.

While we are on the subject of Boomers, take a look at this story from USA Today on how this generation is contributing to society.

Boomers’ new jobs give back

Baby boomers who came of age in the era of John F. Kennedy’s civic call to arms are now, in the second half of their lives, not just asking themselves what they can do for their country, but they’re actually doing it.
A new telephone and Internet survey, touted as the first of its kind, indicates millions of boomers are either quitting their old jobs or coming out of retirement to pursue new careers that not only give them personal meaning but also contribute to society.

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I sat down with Richard Marker during his recent trip to Israel. Richard was here to address the International Conference of Keren Hayesod the next afternoon. These are his reflections.

What did I learn from the international philanthropists?

They were from Latin America, Canada, Europe, Israel, South Africa, and Australia. All of them committed to philanthropy, and all of them eager to learn. My job – to translate the transformative elements of 21st Century philanthropy [and identity] to folks who successfully mastered the 20th. I was to address the challenges of the generations.

What was so refreshing, for me, was their openness. There was much less dismissiveness and defensiveness than one might have imagined. After all, these were people who had earned the right to be leaders – in their own communities, in their nations and international organizations. They had put their time, energy, and money on the table for many years. And they were being challenged by, of all things, an American. It would hardly have surprised me had they responded otherwise – they wouldn’t have been the first group of senior funders who have wished that the world would be as it used to be, and that the organizations they built would be embraced by their offspring.

There were a couple of areas about which there was some disagreement, to take but one example, about the significance of tax policies are to private giving. And there were clear cultural differences between different parts of the world.

But more than disagreement was genuine concern and puzzlement. For them, as for most senior communal leaders, commitment means loyalty and affiliation as the manifestations of identity. What does it mean to believe in a cause, they asked, if younger people don’t feel that they need to “belong” or have long term financial commitment or even the sense of responsibility to work for an organization? Isn’t organizational involvement the very manifestation of caring for a cause or community? Otherwise, isn’t it simply an indulgence.

Of course, those of us in this world accept that this is precisely the intergenerational divide. For newer funders, loyalty persuades less than performance, and proven results trump marketing messages. Why support an organization just because it has been around for a while and once may have been great? And why support [reputed] bloated bureaucracies when direct targeted grants will go directly to those in need?

What I found most moving was that the group of senior philanthropists I was meeting with had already accepted that the world was moving beyond them. As one of their most respected leaders emphasized, in his concluding comments on my words: “in my family, we have been having these discussions for a long time. Our philanthropy has changed because of it. The younger members simply don’t want to do it my way any longer.” These leaders really do care about being relevant and not just being honored. They really do want to find ways to convey their deepest values and caring to those who follow.

For the last several years, in my teaching and talking, I have spoken about a time of transition – between that which was to that which will be. This session with these 100 international philanthropists persuaded me that that isn’t the question any longer. It is the new era which already fully defines us.

Richard Marker serves as an advisor to foundations, independent funders, and not-for-profit organizations; and is a Senior Fellow in Philanthropy at NYU’s George Heyman Jr. Center for Philanthropy. He specializes in strategic philanthropy and planning.

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WUJS Arad, established in 1968 to provide a one year pluralistic program in Israel for recent college grads, is now history.

At a meeting this past Sunday night, the Hadassah WUJS Arad Company voted to permanently close the program in Arad later this summer.

Young Judaea is currently in the process of re-engineering the program to open this September in Jerusalem.

WUJS Arad has enjoyed a long history and a sterling reputation. The Ulpan program was continually rated one of the tops in Israel. The feeling of community among the participants and alumni has been first rate. 8000+ participants have passed through the sleepy dessert town of Arad; the best guess is 25% have made Israel their home. WUJS Arad is not only responsible for many marriages, but also boasts several 2nd generation participants. (more…)

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an editorial from this week’s Forward worth circulating:

Ehud Olmert’s stock with the Israeli public has fallen so low these days that virtually anything Olmert says or does is taken to be a cynical ploy to save his job. That’s a pity, because the Israeli prime minister has had some very good ideas of late…

…One of his best ideas surfaced in a June 22 address to the governing board of the Jewish Agency for Israel. In the address, Olmert called for a “new paradigm” in Israeli relations with the Jewish Diaspora…

…Skeptics say that Olmert no longer has time or sufficient authority to get a project of this magnitude rolling. That may be true, although Olmert has frequently surprised his detractors. It’s also said that Israel won’t be able to find the needed millions in its strapped budget, and that the Jewish Agency is too calcified to transform itself in the manner required. Again, very possibly true, but beside the point. Responsible observers have been predicting for years now that the world’s Jewish community is facing demographic and cultural disintegration in the coming decades, unless something like a miracle occurs. It’s time to start organizing that miracle.

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Two participants from different sides of the Atlantic offer their views on the recently concluded ROI120 Summit.

from the London Jewish Chronicle:

What the next generation wants

It seems we are on the verge of what Malcolm Gladwell calls “the tipping point”, with Jewish events to suit all interests. The emphasis will be on highly individualised, minority projects — not “one size fits all” schemes and events.But when it comes to nurturing individuals, the returns are about reaching out to disenfranchised Jews rather than showing bottom-line profits.

Although it’s hard to measure the growth of spiritual capital, the sheer number of active participants in Jewish programmes suggest we’re on the right track.

and this from Yavnet: Jewish Wisdom at Your Fingertips:

This entertaining second link was written by JT Waldman who in addition to being a participant at the ROI Summit is a Fellow this summer at the PresenTense Institute for Creative Zionism.

JT is working on a project titled: YAVNET and the Tagged Tanakh – A start-up endeavor from the Jewish Publication Society dedicated to creating dynamic online experiences around Torah. You can learn more here.

ROI Global Summit For Young Jewish Innovators

Recently, 120 up-and-coming members of The Tribe from twenty-eight different countries ascended to Jerusalem to network, consume lots of wine, and “innovate.” With a third of the constituents hailing from Israel, another third from North America, and the remainder from the global village stretching from New Delhi to Krakow, one fact was abundantly clear at the ROI 2008 Summit : South American Jews have more fun!

Somehow the analytical and social hang-ups that plague most of the Jewish world dissolve in laughter and clapping around these jovial people. In the closing forum of the summit, primary evidence from participants as well as statistical data gleaned from surveys conducted during the summit confirmed this reality. Judeos Latinos gozan la vida y el Judaísmo!

Even with a full range of 20-30something heebs from around the world—including hedge funders, Youtube celebrities, the complete LGBT spectrum, organizational reps from Hillel, AJC, Hadassah, and The Sochnut—these Judeos were, in many ways, the magnetic bonds of the five day summit. Their approach and demeanor as a group was infectious and refreshing, pointing to what is most lacking in Jewish innovation (in my humble opinion): JOY!

Over the course of five days, we painted murals in immigration absorption centers, divided into tracks related to our fields of expertise, and rubbed elbows with tech entrepreneurs, philanthropists and each other. And all the while, like amino acids fueling our collective body, the Judeos delighted and thrived within the formal programming and informal activities.

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from NTEN, the Nonprofit Technology Network:

Texting, Facebook, Email, Blogs, MySpace, Aaaargh!

As you probably already know, the answer is to use all of these communication channels. You may have heard the term Marketing Mix. This term means something different today than it did in the days of old media, but there are still some valuable lessons to be learned by analyzing your marketing mix.

The way I learned it, a Marketing Mix describes the various messages that a company disseminates through selected marketing channels. Traditionally, the communications were pushed (one way communication) through channels like television, radio, newspapers, and maybe direct mail. The options in the 80s and 90s were vastly different from the tools available to an organization in 2008. So how should an organization evaluate their marketing mix today?

Click here to read more.

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from Bloomberg.com:

Olmert Corruption Probe Prompts Campaign Law as Donations Rise

The spotlight on Talansky and Olmert may make fund-raising for Israeli organizations more challenging, said Seymour Reich, former president of the Conference of Presidents of Major Jewish Organizations. Jews outside Israel give about $2 billion a year to Israeli groups, said Michael Jankelowitz, spokesman for the Jerusalem-based Jewish Agency, citing Bank of Israel figures.

Potential donors will likely be “more careful and cautious and ask for more clarification of what the rules are before they give,” Reich said in a phone interview from New York”. A lot of clarity is needed here when you have people soliciting and offering funds.”

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From Main Street to China, the recently released Giving USA report is making news. In fact, the high number of articles in the press and on the blog-o-sphere points to an apparent high interest in the world of giving.

As we posted on Monday, U.S. charitable giving reached an estimated $306.4 billion in 2007, exceeding $300 billion for the first time. I am slowly beginning to make my way through the various pie-charts and graphs, and will have additional observations, but here are some quick stats, all unadjusted for inflation:

• That was a 3.9% increase from 2006 in total giving; it is felt the increase is largely attributable to stock market performance in early 2007, overall growth in the GDP, and increases in corporate and personal income
• Individual giving increased 2.7%
• Corporate gifts rose 1.9%
• Foundation giving increased by 10.3% to $38.52 billion dollars; charitable bequests grew by 6.9% to $23.15 billion (more…)
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  Tags: trends

The JAFI BoG meeting concluded yesterday with a slew of resolutions. More than one Board member shared with me that all the various budget discussions and cutback decisions made for a particularly difficult week. Not the least of it is long existing programs are in the process of disappearing off our communal landscape. While many of these decisions are certainly the correct ones, those of us with ties to a closing program “feel the pain”.

(updated: to include the approved budget resolution JAFI_Budget_June08)

Lost in the shuffle, and we were reminded of this by Richie Pearlstone, is that for eight of the past nine years JAFI has maintained a balanced budget. Additionally, JAFI has been able to retire over $250. million in long-term debt. Both are notable achievements. This, however, did not make the decisions any easier; the problems are real. But also need to be taken in perspective.

Some of the ‘tachelis’ decisions for the coming year include:

• increase income by $8.5 million
• reduce administrative expenses by a further $7.5 million
• cut programs by $13-16 million (the actual resolution figure is a bit confusing)

In keeping with the above, it was also decided that any program, or activity, slated for closure in 2009, will be terminated immediately, subject to existing contractual commitments. Additionally, all new transactions are frozen - at the minimum until the 2009 budget is approved in November. Tough medicine.

As Richie indicated on Sunday, JAFI could ‘afford’ this one year budget shortfall, but for 2009 a balanced budget is needed.

While there is a general consensus that to a certain extent JAFI needs to re-invent itself, they have a storied past that has significantly contributed to both Israel and the wider Jewish world. Hopefully, all of these changes will help ensure a bright future and allow JAFI to refocus its mission and place particular emphasis on core programs including closing the educational gaps here in Israel and the ‘Aliyah by Choice’ initiative.

Related to all the financial discussions taking place was PM Olmert’s Sunday morning speech, and how this may effect Diaspora - Israel relations and funding priorities.

Here are two recent press articles dealing with the proposed initiative:

from yesterday’s Jerusalem Post:

Analysis: Israel’s leaders awaken to a new Jewish world

The official organs of the Jewish Agency are thrilled and unabashedly gratified at the government’s new initiative to start investing in the Diaspora, to “change the paradigm” of the Israel-Diaspora relationship.

The agency issued a statement saying it “salutes” Prime Minister Ehud Olmert for his “vision” in the “historic address” he delivered Sunday to the agency Board of Governors meeting in Jerusalem, where he announced the new initiative.

The gratitude is real. There is palpable relief among agency officials that the government’s new initiative, which could bring hundreds of millions of shekels and much prestige to programs connecting the Diaspora and Israel in the coming years, is being conducted together with the agency, which is seen by an uncomfortably large number of Jews as a politicized and outdated leviathan.

from this morning’s Haaretz:

Israel-Diaspora relations in the post-Olmert era: Uncertainty abounds

Two days after Prime Minister Ehud Olmert’s “paradigm changing” speech on the relationship between Israel and the Diaspora, members of the Jewish Agency board of governors were still unsure how the new direction would actually manifest itself, whether the agency would have sufficient funding, and more to the point, what its are chances if Olmert’s days as prime minister are numbered.

Two days after Prime Minister Ehud Olmert’s “paradigm changing” speech on the relationship between Israel and the Diaspora, members of the Jewish Agency board of governors were still unsure how the new direction would actually manifest itself, whether the agency would have sufficient funding, and more to the point, what its are chances if Olmert’s days as prime minister are numbered.

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