from Boston Business Journal:
Jewish charity takes $49M investment hit
Total support and revenue at Combined Jewish Philanthropies of Greater Boston Inc. fell 65 percent in fiscal 2009 after the nonprofit suffered unrealized losses of $49.3 million on its investments.
CJP of Greater Boston reported total support and revenue of $41.1 million for the year ended June 30. That compared with $117.1 million in the year-earlier period, according to an audited financial statement recently made available.
Investment losses aside, the nonprofit’s total donor support also was hurt by the downturn in the economy, falling to $84.4 million in fiscal 2009, compared with $106.7 million in fiscal 2008. Gifts and bequests during fiscal 2009 were $40.3 million, down from $61.1 million in fiscal 2008, according to CJP’s financial statements.
CJP ended fiscal 2009 with $541.6 million in assets. Most of that amount, some $479 million, was classified as investments. Total liabilities were $77.8 million.
It’s unfortunate that this article, originally reported in the Boston Business Journal, and posted here on eJewishPhilanthropy.com narrowly focused on investment losses CJP experienced in the market this year, but did not provide sufficient context to help readers understand the strong relative investment performance of the CJP portfolio. Put simply, this article doesn’t tell the whole story. CJP successfully managed through this economic climate and has experienced strong returns even in the face of one of the most challenging economic climates of our lifetime.
The fact is CJP’s primary investment portfolio was down -8.2% for the 12-month period ending June 30, 2009. Comparatively, during that same period, the S&P 500 performance was down 26.2%. That’s remarkable performance in this market.
CJP has consistently received the highest 4-star rating from Charity Navigator reflecting CJP’s efficient and fiscally responsible management. On average, over the past 10 years, more than 86 cents of every dollar spent by CJP has supported programs and services for the community.
- David Strong, CFO, Combined Jewish Philanthropies