The promised allocations are predicated on the JFNS reaching its $1.5 million campaign goal, a five percent increase from last year. Thanks to internal cost cutting measures and buoyed by an improving economy, the organization is confident it will reach its campaign goal.
The Federation has budgeted $1,334,036 to distribute during its fiscal year 2010-2011. All local agencies and organizations will receive level or greater funding than last year. (see accompanying chart).
Cohen Hillel Academy, the JCC in Marblehead and Jewish Family Service will all receive the same funding as last year. The Emergency Fund, which will be given $15,000, is now its own line item, as opposed to being a part of the JFS allocation. The North Shore Jewish Historical Society will see its allocation jump 60 percent to a total of $4,000, and the Youth to Israel program will experience an increase of $26,000 to a total of $70,000. The North Suburban JCC in Peabody will receive an additional $10,000 in funding, and the Jewish Journal will gain $2,000.
Federation has taken major steps to improve its bottom line efficiency so it can return more of the dollars it collects to the community. In addition to trimming staff in 2008, it significantly cut operating expenses in 2010 by relocating its Salem offices to the JCC in Marblehead — a move that could save the community as much as $100,000 in overhead annually.
JFNS Executive Director Liz Donnenfeld reports that over the past three years, Federation has cut overhead expenses from 40% to 30% of revenue raised — a 25% reduction. The result is that 70% of the revenue raised from the current campaign can be directed to the community.
“We have worked very hard to become a tight, lean organization,” Donnenfeld said, crediting Chief Financial Officer Marla Levy and Treasurer Marty Rogosa for keeping a careful eye on the bottom line.
“Ideally, we would like our overhead expenses to be 25 percent, but the only way we can continue to lower overhead is by increasing revenues,” said Donnenfeld, adding that she hopes the community will do its share by financially supporting the current campaign, which runs through January 31, 2011.
“We are grateful for all 1,800 donors that currently contribute to the Federation campaign. But to continue building our campaign and to maintain the support of our major donors, we must build the base of the campaign, which means we need new, younger donors to begin contributing for the first time. First time gifts of $18 are welcome and appreciated! This will make a huge impact on the Federation, which will translate into a stronger, more vibrant Jewish community,” Donnenfeld said.
For the second year in a row, the campaign has been charged with allocating a $250,000 grant from the Jim Joseph Foundation, based in San Francisco. Jerry Somers of Swampscott, who sits on the Jim Joseph Board, has been instrumental in this effort. The grant is helping North Shore families offset the cost of Jewish overnight camp, preschool and day school.
“I can’t stress how fortunate we are to have Jerry Somers as a friend of Federation,” Donnenfeld said, noting that the pursuit of grant dollars is increasingly becoming an important part of the organization’s strategy. Currently 22% of the money raised at Federation is derived from grants and directed gifts.
Direct giving is a new trend that has also influenced the campaign. “People love giving their money to specialized areas,” said Donnenfeld, who is encouraging the practice.
Donnenfeld is especially pleased with several new programs JFNS is funding, that the Journal will write more about in the coming weeks. It has allocated $44,000 for Ikkarim, a new adult education program for parents with young children that will be launched in September, and continued funding to Chagenu for joint community holiday programs. She is also excited about providing a $40,000 pool of funds for Community Innovation Grants. The idea for these grants sprang from a series of community forums the Federation held this spring. That program will also be unveiled in the fall.
Barbara Wolf contributed to this report.
