Weathering The Storm
Timed to coincide with the various events these two weeks, the Israeli press has had a significant uptick in North American Jewish philanthropy and financial ‘doings’ related stories. Here are a few links, just some of the news stories appearing in Haaretz these past few days:
Blogger: Federations must connect with young Jews
When some people, who want to do cool and interesting things, approach the organized Jewish communities and federations, more often than not they get resistance - in terms of money, in terms of support, in terms of anything.
Perhaps the ultimate example of targeted giving came in the form of the cash-stuffed envelopes in which Long Island businessman Morris Talansky donated funds directly to Ehud Olmert.
(eJP note: for an update related to this story, see our post KKL and JNF (U.S.) at Peace)
Although 2008 has not quite come to a close, it seems clear that this year’s fundraising figures for the Jewish National Fund in the United States will make grim reading. The downturn was already evident last year, when fundraising stalled at about $44 million - down from between $50 million and $60 million just two years before.
The malaise that has been eating away at JNF-USA donations is not just an outgrowth of the global financial illness - it is a gradually worsening side effect of a bitter legal feud between the Jewish National Fund’s historic base in Israel, Keren Kayemeth LeIsrael, and its two oldest and largest affiliates, the JNF branches in the United States and Britain, over who has the rights to the JNF trademark.
The question is whether Israel can continue to swim as the second wave - the impact on real economic activity, like continued layoffs, declining manufacturing and consumption, and pain felt in every pocket - reaches its shores. Ask Bank of Israel Governor Stanley Fischer, and he will tell you that yes, Israel can.
The annual conference of Civic Leadership, an umbrella organization for Israel’s third sector, was supposed to take place next month at Kfar Maccabiah, as it does every year. But after executive director Yaron Sokolov was unable to get concrete commitments for funding there, he decided to move it to Tel Aviv University.
“Most of the groups are putting things on hold,” says Sokolov. “Businesses I’m in contact with are not making decisions. They aren’t saying that they won’t give, but they’re waiting until the situation settles in early 2009. Among other things, they want to see whether the crisis has already hit rock bottom.”
Israel has yet to feel the wrath of the global economic crisis. Despite fearsome warnings in the business pages, the actual implications of the world’s financial meltdown on the Israeli economy have so far been marginal. No Israeli bank or major company has collapsed, sparing the government from the need for economic first aid. By and large, Israelis are anxious about the coming crisis, which follows an unprecedented boom, and are waiting for a much-expected decline in real-estate prices.
Over the last few years, a wide-scale interest in reducing social gaps has turned local philanthropy into something of a trend. This could be a good thing for those who need donations now more than ever.
A Brave New Philanthropic World
It’s time to face facts. The world under globalization is becoming leaner and leaner - a process now exacerbated by the omnipresent financial crisis.
This ever-increasing economic efficiency is mirrored by another important shift - the new relationship between government, corporations and private philanthropists. We at Yesod label this “the triangle of influence” - the three primary agents of social change.
Corporations are the newest of the three agents, but are taking the lead in issues ranging from the global environment to AIDS in Africa and local economic empowerment. They bring a business mindset to the world of social change in terms of value for dollar spent, effective business models, and an institutional structure that is affecting the philanthropic world.
Complimentary to this is an increased role for municipal governments, because the more global we become, the more local we become, as national governments fail in many social areas.
Philanthropists and their new partner, corporations, are now pairing with local governments to effect the biggest change on the ground. Together, they are starting to think strategically about their dollars in terms of maximizing impact and even making a profit.
Yet, why is the Jewish world not adopting some of these broad new trends? It remains frightened. And stuck. We continue to look at our basic institutions as if change spells their destruction instead of progress. This outlook is not logical, and greatly limits the effect of our own dollars and the strength of our own efforts at change.
Think Big to Make Change Happen
The opening of the UJC’s General Assembly last night also witnessed the launch of JGooders, a groundbreaking online arena for Jewish Good Doing. Drawing on some of the best concepts from the U.S. and U.K., and focusing solely on Jewish and Israeli charities, JGooders philosophy is simple: to increase the world of good deeds and good doers by connecting social initiators with social enablers.
I had the opportunity a few days ago to sit with two of the founders, long-time communal professionals Ronit Dolev and Smadar Fogel. With the backdrop of a beautiful November afternoon at the Tel Aviv Port (highly recommended to all) watching the sun set over the horizon, I was treated to their vision, a well thought out business plan and a site demo.
Here in Ronit’s own words, A Dream Comes True; and we’ll have more on JGooders shortly.
Turning Dusk Into Dawn
by Ariel Beery and Aharon Horwitz
Once a year the Jewish world experiences an exceptional gathering of movers and shakers - and this year it is coming to Jerusalem. The General Assembly of the United Jewish Communities and Federations of North America, to be held November 16-19, will attract participants from across the spectrum of Jewish communal leadership, and, most significantly, those who invest in and foster the many activities and ventures identified with the Jewish community.
It is only natural, then, that this year’s financial crisis has got most if not all of these participants - resource providers and those who depend on them - in a bit of a haze. With uncertainty clouding the philanthropic skies, discussions in this GA’s halls are more likely to be about sustaining what exists than about seeking out new opportunities for greater growth and impact. For those whose projects lack solid financial backing, it seems closer to dusk than dawn.
But it need not be. In fact, this year’s economic crisis could provide exactly the paradigm-shifting opportunity the social sector has been waiting for. This is because, thanks to the effect of the digital age, impact costs less in absolute dollars today than it did during the last recession. Investing resources in new ideas can pay off in unimaginable ways - and so instead of rolling back financing, the Jewish community, by transforming its investment strategy, is in a position to accomplish much more than ever before. All that’s needed is an appreciation of the new opportunities that exist.
The Modern World of Social Change
The world of social change is in transition. Globally, national governments are no longer fulfilling the role of social change facilitator. In its stead, local and municipal governments are becoming increasingly powerful and effective. We see that in the response to Hurricane Katrina in New Orleans as well as with the forest fires in California in the last few years. In short, this transition is the definition of glocalization’ - the more globalized we become, the more localized we become.
Within this new reality, the increasing force of local businesses and the third sector is front and center. Foreign Affairs recently published an article on “Global Corporate Citizenship,” which argues that “companies must not only be engaged with stakeholders but be stakeholders themselves alongside governments and civil society.” Bill Gates, in his “Creative Capitalism ” article in Time Magazine August 11, 2008, calls for businesses to re-examine ways they can profit while simultaneously assisting the underprivileged and developing nations. “Government and non-profit groups have an irreplaceable role in helping [the underprivileged and 3rd world countries], but it will take too long if they try and do it alone. It is mainly corporations that have the skills to make the technological innovations work for the poor.”
This is what we call at Yesod Masad the “triangle of influence” - today governments, businesses, and the 3rd sector are working together to affect social change. The synergy between these forces is powerful enough to tackle some of the most looming problems in education, hunger, poverty, disease, and the environment, domestically and globally.
Jewish communities worldwide are all facing common Jewish issues: Jewish identity, Jewish education, demographics, lack of leadership, and anti-Semitism/anti-Israelism/fundamentalist Islam. (more…)
