Ailing economy may lead to federation cutbacks

Campaign shortfall makes budget cuts to agencies likely

Howard Gases, left, executive director of the Jewish Federation of Monmouth County, said the organization may have to impose budget cutbacks to its member agencies. Federation board president Elise Feldman said the necessity of the probable cuts will be a “painful process.”

Howard Gases, left, executive director of the Jewish Federation of Monmouth County, said the organization may have to impose budget cutbacks to its member agencies. Federation board president Elise Feldman said the necessity of the probable cuts will be a “painful process.”

Photos by Jill Huber

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The economic downturn and a drop in donations from a few major donors have led the Jewish Federation of Monmouth County to consider a major cut to its beneficiary agencies

The federation’s 2007 campaign raised $2.3 million, which is $300,000 more than was projected for 2008. As of the writing of this article, the campaign stands at $1.8 million.

“But we need at least a $2 million 2008 budget,” Howard Gases, the federation’s executive director, told NJ Jewish News. “And even if we reach the $2 million mark, we’ll still have to impose a 30 percent funding cutback.”

Among the agencies and services likely to feel the pinch in 2009 are the Jewish Family & Children’s Service of Greater Monmouth County; the Jewish Community Centers in Deal and Manalapan; the kosher meals-on-wheels program, which provides 20,000 meals each year; geriatric services, programs, and other services for Holocaust survivors; and tuition assistance to the Solomon Schechter schools in Marlboro and Howell, Hillel Yeshiva in Ocean, and the Yeshiva at the Jersey Shore in Deal. Also likely to be affected are federation allocations to the Jewish Agency for Israel and the American Jewish Joint Distribution Committee, both of which have offices in New York City; Taglit-Birthright Israel; and the Crossroads Center, a Jerusalem facility that provides services to troubled teens and a counseling service for Israeli victims of terror.

The allocations process is under way and will be reviewed at the federation’s Jan. 20 board meeting, Gases said. The federation also may create a new funding model that will underwrite programs, rather than agencies, he added.

“We’re taking a hard look at the funding we do,” said Gases. “The beneficiary agencies are all extremely important to the Jewish community here and abroad. Community needs are critical.”

Although the projected budget cuts are scheduled to go into effect this month, they will not take place in some instances and won’t be as severe in others if the federation is able to raise several hundred thousand dollars “immediately,” Gases said.

“It hurts to propose budget cuts, when our purpose is to build and strengthen the community,” he said, adding that the beneficiary agencies themselves will have to decide which of their programs and services to eliminate or curtail.

Gases said several large donations the federation has regularly received in past years were not forthcoming during the federation’s 2008 campaign. Some of these donors have been severely affected by the state of the economy, he said.

In fact, the funds from the federation’s largest annual donor were not received in 2008, Gases said. (The name of the donor and the amount of the contribution are confidential.)

“Aside from some minuscule grant money, we have no other sources to tap into,” said Gases. “Most of the agency’s funds come from the Jewish community.”

‘Scaling back’

Despite the ailing economy, however, federation president Elise Feldman of Farmingdale is hoping some members of the community will come through. “A certain segment of the population is affected by the problems in the economy and the stock market, but their lifestyle won’t change,” Feldman told NJJN. “They could still make a donation that won’t impact that lifestyle. I hope when they realize how badly the money is needed, they will step up and offer assistance.”

Since November, the beneficiary agencies have made presentations to the federation detailing their funding requests. Each is a deserving recipient, Gases said, “but we can’t provide a full allocation if the money isn’t there.”

The prospect of introducing across-the-board budget cuts will be a painful process, said Feldman.

“It’s particularly tough to take this kind of action when the economy is down and many people have lost their jobs or other sources of income,” she said. “It means it will be harder for the beneficiary agencies to do what they do if we don’t have the resources to fill the funding gap.”

Budget cuts will leave their mark on the Jewish community, especially if there are reductions in tuition assistance for the county’s Jewish day schools, she said.

“We’ve worked so hard to build the Jewish community in Monmouth County,” said Feldman. “The elimination or reduction of educational programs will have an impact that could result in a loss of knowledge of Jewish traditions and culture.”

But the “extraordinary generosity” of the county’s Jewish community may yet save the day, said Sheri Tarrab of Holmdel, the federation’s campaign chair.

“We’re hoping for an 11th-hour mitzva,” she said. “In the past, whenever community members became aware of an emergency, they were there to help. And even in the midst of the current economic situation, some have made donations instead of buying a new toy or luxury item, while others made holiday donations by scaling back on gifts to family and friends.”

Some donors may elect to make an additional gift to the federation in the spirit of tzedaka and tikun olam, she said. The board also has reached out to prospective new donors, she added.

“There are people who are willing and eager to help,” said Tarrab. “Some have suffered significant loss of income, but they still want to help those who are even less fortunate. They truly care, and they haven’t forgotten us.”


Agency seeks ways to ‘keep revenue flowing’

THE JEWISH FAMILY & Children’s Service of Greater Monmouth County may feel the brunt of the economic woes for 2009.

The agency received a $212,500 allocation from the Jewish Federation of Monmouth County in 2008; the expected 2009 allocation amounts to $150,000, said Paul Freedman, the agency’s executive director. As a result, JF&CS is facing a $62,500 funding reduction (a 25 percent cut) for the new year, he said.

However, JF&CS plans to use money from its reserve funds to prevent any service cutbacks in 2009, Freedman told NJ Jewish News. The agency also opened a second thrift shop in Long Branch in November; the original thrift store is still operating in Asbury Park, where the JF&CS main office is located.

“We hope the second store will eventually provide new revenue streams,” said Freedman. “We’re also going to ramp up our direct mail campaign, intensify efforts to attract more private donors, and try to reduce our overhead expenses.”

To that end, the agency is researching the availability of new office space with lower rents for its branch offices in western Monmouth County, he added.

The agency’s 2008 budget totaled $1.3 million, and the projected budget for 2009 is the same, Freedman said.

“We’re strategizing right now to figure out ways to keep our revenue flowing,” said Freedman. “It’s an ongoing process, and agencies like JF&CS are not recession-proof. Human services that deal with the poor and disenfranchised always suffer the most. We’re trying to be optimistic, but 2009 is going to be a difficult year. But we’ll rise to the occasion. Hopefully, these challenges will equal new opportunities.”

Because of the economic crisis, more people are expected to seek services provided by JF&CS, such as the distribution of food and clothing, counseling, and employment assistance, Freedman said.

“We’d like to establish a $10,000 emergency fund that will provide cash grants to those in dire straights because of the economy,” he said. “This money will have to come from private donations.”

The agency will continue to provide services that represent Jewish values, such as generosity, compassion, and helping those in need, Freedman said.

“We’re proud to offer programs and services that reflect these traits, and we have an important role in the community. We have to be visible and responsive. We have a great staff and board, and they are committed to the people we serve.”

— JILL HUBER

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