"What should I do?" you wonder. The economic crisis has eroded your assets and earnings, leaving you with less money for philanthropy. The community foundation, university, hospital and museum to which you always contribute are asking you to consider an increased gift this year due to their own depressed financial situation. At the same time, a close friend introduced you to a social entrepreneur who is seeking seed money for an innovative start-up project that aims to tackle the root causes of social inequality. You consider your options. One is to continue to contribute to those institutions that are counting on you as a loyal friend and supporter, and politely decline the seed money proposal. Alternatively, you can put up the seed money for the innovative start-up project and inform the … Continue Reading
Private and Public
We think... by David Roth and Ardie Geldman What should be the relationship between the nonprofit and public sectors? What are the roles of philanthropy and government? In a democratic country, which one knows best what is in the public's best interests? Which one is most capable of meeting the public's needs? To answer these questions, we will discuss recent trends, explore the pros and cons of different government and philanthropic models, demonstrate how we see the breakdown in the roles of the nonprofit and government sectors, and offer recommendations on what the government and nonprofit organizations can do to encourage philanthropy in Israel. Background These matters have gained prominence both in the United States and Israel with the onset of the current economic … Continue Reading
Beware of Throwing Good Money After Bad
...financial due diligence can reduce risks of philanthropic giving by David Roth and Ardie Geldman Dollars are dear The ongoing economic crisis has made philanthropic dollars more precious. Demand for nonprofit programs and services and for the financial resources to carry them out far outstrips supply. Further, no one knows when the crisis will end. Nonprofits that manage to stay afloat this year on a shoestring budget may face even greater difficulties in 2010 and beyond. Simply put, there is less money available to warrant the same level of risk-taking and continuing to “do business as usual.” Throwing money away One of the greatest risks is donating money to an organization that is likely to fail in the near future. When this occurs, we can point to three losses: first, the … Continue Reading
If You Have an American Friends Organization, Do It Right
We think... The role of "American Friends of ..." organizations in overseeing their grants to the Israeli affiliate by David Roth and Ardie Gelman You may have noticed that American donors and foundations that fund programs and projects in Israel outside of the Federation/UJC framework usually make the actual contribution to an "American Friends of" organization rather than directly to the Israeli amutah (nonprofit organization). The term "American Friends of" is not statutory in nature, but rather is the common term that refers to any U.S. nonprofit tax-exempt 501(c) (3) public charity whose primary purpose is to raise funds in the United States to either carry out activities overseas or to make grants to an organization located in a foreign country. Interestingly, the overwhelming … Continue Reading
Is Support for Israel a Luxury?
by David Roth and Ardie Geldman Together with much of the world's economy, the Jewish world is a financial mess. Along with others it endured last spring's sub-prime mortgage meltdown, lived through the autumn failures of financial giants Bear Stearns and Lehman Bros. where many major supporters of Jewish and Israeli causes lost jobs, and emerged only to confront the winter's coups de grâce, the shocking and embarrassing $50 billion Madoff scandal. Consider: ...Some quarter of a million people live in Jewish households in New York City with incomes under 150% of the Federal Poverty Guidelines according to the Metropolitan Council on Jewish Poverty. ...The Jewish Federation of Metropolitan Detroit has been offering housing assistance to Jewish families to help stave off the threat of … Continue Reading
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