The Jewish engagement group Aish has laid off several employees and has twice had to delay salary payments to staff in recent months amid funding shortfalls and resulting cash-flow problems, eJewishPhilanthropy has learned. The organization confirmed the situation, saying it was primarily connected to the strengthening of the shekel, which dropped the value of its dollar-based fundraising efforts amid an increase in operating costs. 

“Like many Israel-based organizations, the past few years have brought real challenges. Global economic shifts, including currency fluctuations, have increased costs in unpredictable ways. The dramatic strengthening of the shekel against the dollar resulted in a multimillion-dollar increase in our operating costs, given that a significant portion of our expenses are shekel-based,” the organization, which is headquartered in Jerusalem, said in a statement. “These conditions, while not unique to Aish, are nevertheless realities we have had to navigate while continuing to grow and serve.”

An Aish spokesperson confirmed that a number of employees had been let go in light of the financial shortfalls. “With that in mind, and to ensure the continued strengthening of our long-term stability, we made the difficult decision to reduce a small number of positions, fewer than ten employees out of a global staff of more than 360,” the organization said. “These decisions are never easy. Each individual contributed meaningfully to our work, and we provided a high level of support to those affected through the transition, going well beyond the legal requirements.”

Last month, Aish held its annual two-day “All in for Aish” matching fundraising campaign, raising $6.8 million from “students, staff, alumni and supporters from around the world,” which the organization said surpassed its $6 million goal.

As eJP has previously reported, Israeli organizations that receive significant funding from the United States are increasingly finding themselves in dire straits, as the donations and investments they receive do not go nearly as far. A year ago, a dollar raised would have translated to NIS 3.68; today, it is worth nearly 20% less, NIS 2.95, its lowest level in more than 30 years. This drop in the value of the dollar comes as costs in Israel have stayed steady and even risen. 

These financial challenges, which Aish said it was actively addressing, come as the organization has expanded significantly in recent years under CEO Steven Burg, who joined the organization in 2015. Most significantly, this expansion has included purchasing a new eight-story property in central Jerusalem for its Gesher women’s seminary program. The group has also launched a variety of new programs, including a social media platform for Jewish college students and a “Rabbi AI” chatbot. Last year, the organization ran in the World Zionist Congress elections for the first time and merged with the religious study initiative Partners in Torah.

The expansion, alongside the financial hit of the strengthening shekel, appears to have stretched the organization too thin. 

“Our focus now is on building an even stronger and more resilient foundation for the future. This is a natural stage for organizations that experience significant growth. We are aligning our expansion with sustainable resources, strengthening our fundraising efforts, and ensuring that our infrastructure can support the continued growth of our mission,” the organization told eJP. 

In an email to staff in February, which was recently shared with eJP, the group’s chief financial officer, Jamie Feinmesser, told employees that there would be a “short delay in payroll” that month, assuring them that the organization was “approaching this carefully and putting measures in place to reduce the likelihood of this happening again.”

Earlier this month, Feinmesser again emailed staff members to inform them of and apologize for another payroll delay, citing a “significant loss” that was incurred last year. Aish declined to comment on the nature of this “significant loss.” 

On Tuesday, he informed staff that the organization had received an Israeli bank loan that would allow the nonprofit to immediately pay the salaries of Israeli staff and to pay the American employees’ salaries more quickly.

In a statement to eJP, Aish confirmed these payroll issues — the one in February affecting Israeli employees and the current shortfall only impacting American ones — and highlighted the fact that the CFO was in regular communication with staff about the matter, updating them throughout. 

“As we adjusted to these pressures, we faced a short-term cash-flow challenge,” the organization said. “That issue was addressed immediately in Israel and is currently being resolved for our U.S. employees. At every stage, there was complete transparency with our staff. Our employees are the heart and soul of Aish.” 

A spokesperson for the group said that Aish remained focused on its goal of “inspiring the Jewish people” and that it was “confident that the steps we are taking now will allow us to navigate the current challenges and continue growing and leading for many years to come.”