by joe eskenazi
staff writer
A harsh critique on the state of America’s Jewish federations by San Francisco demographer Gary Tobin put local federation executives and lay leaders on the defensive — even while admitting that many of the criticisms are valid.
Tobin, president of the Institute for Jewish & Community Research, fired his salvo via a paper titled “Talking Truth About Jewish Federations,” which was released at this month’s United Jewish Communities General Assembly in Nashville.
In it, he claims that U.S. federations have marginalized themselves in the world of Jewish philanthropy and community building by clinging to antiquated and dysfunctional business models and refusing to address a rapidly shrinking donor base.
“The annual campaign, in real dollars, reached its peak in 1967, and, adjusted for inflation, the ’67 dollars reached the 1948 dollars. Other than that, the adjusted campaign is down two-thirds,” said Tobin, who has served as a consultant for more than 70 federations.
What’s more, a shrinking donor base means “you’re cutting people from participating in a way that’s good for them — when someone writes a $25 or $50 check, it connects them. But when you concentrate your campaign on just a few donors, you sustain more risk. A good million-dollar donor to an umbrella campaign makes that gift and leaves you alone. A bad million-dollar donor uses that gift as a hammer, in all kinds of ways. So you really put your organization at risk.”
But Tobin reserved his harshest criticism for the nation’s Jewish community endowment funds, singling out San Francisco’s as particularly problematic.
While the JCEF has proudly announced that it now controls nearly $3 billion, Tobin sees this as “nonsense.”
“Monies managed by the San Francisco federation are no different from monies managed by Fidelity or Schwab. The fact those dollars reside there does not mean they are going to Jewish philanthropy or will go to Jewish philanthropy. The federation does not control the grants made from those monies” —donors do — “and if you look at the grants … you will find the majority of dollars going to secular causes,” he said.
“You create an illusion when you say you have $3 billion. If I were the JCC or Jewish Home, my response would be, ‘Where is it? Give me some.’ It creates a very bad image for the federation. It makes it seem as if they are an institution with vast resources and are unwilling to share them for the very purpose for which federation exists.”
Phyllis Cook, the JCEF’s executive director, was not available for comment. John Pritzker, the S.F. federation’s president, pointed out that the JCEF distributed $200 million last year, and recently gave $10 million to the Taube-Koret Campus for Jewish Life in Palo Alto.
“If [the JCEF] is presenting the wrong image, it’s because we’re probably guilty of not having explained to the community as well as we should have how endowment works,” he said.
“Enormous gifts have been made to the community out of endowment, to both the Jewish and non-Jewish community. Isn’t it better that it comes from the Jews? If something goes to UCSF from the JCEF, people will say that’s good for the Jews.”
Philanthropist and former JCF President Richard Goldman, however, expressed support for many of Tobin’s contentions.
“Spending down endowments is something we firmly believe in. In the last four years, we gave away 10 percent a year and in the coming year we’ll give way 13 percent,” said Goldman, who operates a fund through the JCEF.
“If you’re going to brag about [controlling] $2 billion, that, to me, is frightening. Why is that money just sitting there?”
Furthermore, the JCEF’s great wealth has created a “business-model disaster,” according to Tobin. Prospective donors and beneficiary agencies don’t know who’s the boss, so to speak — the federation CEO or JCEF executive.
“Who do you go to? Who’s really in charge? It makes the organization look dysfunctional,” Tobin said.
Pritzker downplayed Tobin’s allegations of dysfunction, but did note that, following Cook’s retirement in June, the candidate who fills the federation’s vacant CEO position will lead both the JCF and JCEF — a move Tobin heavily advocates.
On other positions, federation leaders described Tobin’s paper as highlighting many of their longstanding concerns.
Loren Basch, CEO of the Jewish Community Federation of the Greater East Bay, agreed with Tobin’s claim that beneficiary agencies squabbling over “entitlements” squelches innovation and leads to repetition. The East Bay federation did away with regular allocations and moved to “grants” that are reassessed each year.
As far as expanding the shrinking donor base, Pritzker notes that the S.F.-based JCF has expanded its Business Leadership Council, which involves Jewish community members younger than 50.
“I suspect that when they read [Tobin’s paper], 95 percent of federations said, ‘Oh my God! He wrote this about us!’” Pritzker said.
CopyrightJ, the Jewish news weekly of Northern California