Programs In Peril

Impact of economic crisison our beneficiaries

November 2008

www.jewishagency.org

Every year 2 million people around the world

depend on the services of the Jewish Agency

Many are now in jeopardy.

But many are now in jeopardy.

Global Economy Changes in past 2 years

ISRAEL:

•U.S. Dollar devaluation of 23% against Shekel

•6-7% increase in inflation

•Activities in Israel:75% of budget

Eastern Europe:

•U.S. Dollar devaluation of 20% against Euro

•7% increase in inflation

•Activities in Europe: 5% of budget

FSU:

•U.S. Dollar devaluation of 13% against Ruble

•30-40% increase in inflation

•Activities in FSU:10% of budget


Reality check in Israel

75% of all donations to the Jewish Agency in U.S. dollars

55% of all expenditures in shekels

23% Devaluation of U.S. Dollar to Shekel Dec 06 – Aug 08


Reality check in Israel

Total dollar budget of programs unchanged;

Shekel budget to implement has decreased dramatically.


Net result

2008: Financial challenge totaling over $20 million

2009: Extreme measure of slashing $45 million from 2009 budget


Reductions in 2009 Budget

REDUCTION

Structural changes & overhead reductions $10.0 million

Additional cuts and adjustments needed $13.0 million

Program reductions $22.0 million

TOTAL 2009 Budget Cuts $45 million

Programs in Peril


Reductions in 2009 Program Budget

Program area REDUCTION

STRENGTHENING ISRAEL through Immigration and Absorption

$10.3 million

PARTNERING WITH ISRAELIS to effect transformative change

$2.8 million

CONNECTING NEXT GENERATION with Israel and peoplehood

$6.4 million

Allocations to social programs and activities $2.5 million

TOTAL Program Cuts $22.0 million


Immigration and absorption

$10.3 million in cuts• A reduction of $3.4 million from

absorption centers budget

• $2 million cut in budget for Student Authority Scholarships in 2009


Impacting lives like Raphael, a lone soldier from France


Effecting social change in Israel

$2.8 million in cuts• A reduction of $800,000 in the

Youth Aliyah Village budget

• Priority regions cut by $700,000


Impacting lives of at-risk Israeli youth like Dvir


Connecting the next generation

$6.4 million in cuts

• A reduction of $1.7 million in the HEFTZIBA budget

• Educational Schlichim cut by $900,000


Impacting lives like Liza, a 12-year old from Khabarovsk in Russia


Facing the economic crisis

TOGETHER

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Programs In Peril