Federations start to feel recession’s bite

TORONTO — The recent economic downturn has had an impact on Canadian Jewish federations, but the effect is less dramatic than in the United States, where three of the largest federations have announced significant layoffs over the past few weeks.

Linda Kislowicz

Linda Kislowicz, executive vice-president of UIA Federations Canada (UIAFC), told The CJN last week that the impact here varies from community to community.

Some Canadian UJA campaigns show slight decreases while others are “holding,” she said. American federations have been hit harder, in part because their campaigns begin later in the year, she added.

Canadian campaigns typically start in August or September, Kislowicz said, and the full scope of the recession only became evident later. As well, she said, the American economy has been hit “way harder.

“We have concerns, certainly, about next year.”

Kislowicz noted that there have been some reductions in budget allocations, both locally and nationally. They range from less than five per cent to between 12 and 15 per cent, she said.

The UIAFC budget has been cut almost 15 per cent, with a resulting 10 per cent cut in national allocations. As well, a total of five UIAFC positions have been cut in Toronto and Israel since the beginning of March. Four people are  no longer working for the organization, and the other position was cut by reducing hours, Kislowicz said.

In Toronto, 10 full-time jobs were eliminated from the Centre for Enhancement of Jewish Education (the Mercaz) in early March, but the move did not have to do with the economic downturn, federation spokesperson Howard English said at the time. The federation has announced an additional $500,000 for tuition subsidies, and “hopefully, enhanced funding for supplementary schools and special education.”

Seymour Epstein, who was the federation’s senior vice-president for Mercaz until April 8, was offered a senior position with the federation, but is no longer with the organization as of that date.

There was also one federation staff position eliminated outside the Mercaz, but English would not confirm whether it was a staff or contract position, citing confidentiality of personnel information. He said that there “are no cuts anticipated at this time.”

Plans to demolish the Bathurst Jewish Community Centre  and replace it with a new facility called the Prosserman JCC are expected to proceed this fall. The BJCC will remain open until Sept. 27, English said.

The estimated cost of the building a year ago was $160  million, of which $85 million in cash donations had been raised at the time.

Toronto’s campaign revenue for this year stands at $62.5 million and is expected to reach $65 million, just under last year’s total of $66 million, said English. Totals for the Jewish Foundation of Greater Toronto are not yet being made public.

In Montreal, Federation CJA has had to cut programs and jobs because of the economic situation (see related article).

Kislowicz said, “We need people to understand that we need everyone to participate and stretch even in times when it might be hard. In times like these, our focus is on protecting those who need our help.”

There is a double whammy of “growing needs, and in some cases diminished capacity,” she said.

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Since the beginning of March, the Jewish federations in New York, Cleveland and Atlanta have laid off between 11 per cent and 25 per cent of their professional staffs. Each organization cited shrinking donations because of the economic downturn as the reason behind the moves.

Howard Rieger, the president and CEO of the federation system’s national organization, the United Jewish Communities, expressed significant concern for the system and UJC’s own well-being as an organization that relies on dues from increasingly cash-strapped federations.

His comments follow a run of layoffs at major federations, among them:

• On March 11, the country’s largest federation, the UJA-Federation of New York, which raised some $153 million in its annual campaign last year, announced that it was cutting 52 employees – slightly more than 11 per cent of its staff. The federation is 10 per cent behind in its fundraising pledges compared to the previous year and 12 per cent behind on collections, and has seen its $675-million endowment shrink by 25 per cent.

• The same day, the Jewish Federation of Greater Atlanta laid off 14 employees in an effort to cut 19 per cent from its operating budget – the second round of layoffs that the federation has faced, according to UJC staff members.

• On March 5, the Jewish Federation of Greater Cleveland announced that it had laid off 25 staffers as part of a plan to trim $600,000 from its operating expenses in the face of a $3-million budget shortfall. Donations to the federation’s annual campaign reportedly are down by about $5 million, and its endowment funds have decreased in value by 29 per cent.

Rieger is warning that the federations are dangerously close to putting their operations in jeopardy if they have to cut more.

It’s a message that hits close to home for the UJC.

In May, the UJC cut 37 jobs in an effort to reduce its budget from $40.2 million to $37 million, and it’s facing more cuts in the near future.

The organization is under intense pressure from the federations it serves to cut its budget even further.

Rieger has offered to slice the budget another 10 per cent and is waiting to see if that will be sufficient for the federations. The decision could be made over the next several weeks, as the UJC is set to hold budget meetings soon in Chicago.

With files from Jacob Berkman, JTA