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P.E.F. Israel Endowment Funds, Inc. Annual Report 2010

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P.E.F. Israel Endowment Funds, Inc. Annual Report 2010 P.E.F. Israel Endowment Funds, Inc. Annual Report 2010 President’s Report PEF continues to provide a means for individuals, foundations and charitable institutions to recommend grants to approved Israeli charities at no expense to the donor. Since our inception in 1922, we have contributed over $1 billion to registered charities, originally in the British Mandate and since 1948 in the State of Israel. We currently approve over 1,200 Israeli charities (Amutot) only a portion of which are listed in this report. In the past year we have added over 100 new charities who save the expense and distraction of creating and managing their own US 501(c)3 friends organization. Many of our registered charities count PEF as the source of critical support and we have many times been instrumental in providing the seed money for what have become significant Israeli non-profits. We have 87 donor advised funds set up with a minimum of $100,000. Together with our general fund, these funds account for $113 million in funds under our management. An annual fee (3/4 of 1%) is deducted from our funds to cover our modest (less than 2% of grants) overhead. Direct donations as small as $25 are accepted from donors without a PEF fund and distributed without any deductions or processing fees. We do not accept credit cards nor host a state-of- the-art web site. We do not have a fundraising budget or otherwise publicize our activities. We do accept grants and bequests and we manage the investment of our charitable funds and monitor our charities with incomparable efficiency. We have a dedicated staff of five who manage our back-office, bookkeeping and donor services, as well as registration and compliance of our charities. PEF does not have a paid executive 3 director or director of development. All management decisions are made at the committee level by our volunteer trustees, who in addition to their committee responsibilities are expected to travel (at their own expense) to Israel to visit charities and provide oversight on PEF projects. In addition to serving our donors and registered charities, PEF is currently running a number of exceptional programs which are funded by a combination of donor advised funds, direct contributions and our general fund. • Dental Programs - The Children’s Dental Care Program began in 1998 to provide children between the ages of 7-9 with complete and comprehensive dental care free of charge. PEF worked with an existing dental clinic in Jerusalem and senior representatives at the Ministry of Health and Ministry of Social Welfare. The Hadassah School of Community Dentistry serves as inspector for quality control. The program is designed to make the dental experience pleasant for the children, many of whom are visiting a dentist for the first time in their lives. Every one of these children is examined, treated and taught dental hygiene (often in the presence of a parent and other family members, who benefit as well). The project includes recalling children six months after their last treatment for a new examination and further treatment where necessary. This program is now administered in Be’er Sheva, Bat Yam, Haifa and Kiryat Ata in addition to now two clinics in Jerusalem: a total of 17 chairs. From its inception and through the year 2010 our program has treated 14,860 children with the 2011 budget providing new care for another 1,510 children (at $400/child) and 3,950 recalls of children already treated (at $200/child). In addition to our juvenile dental program, we also fund a smaller but growing dental program for Ethiopian teens. 4 With national awareness about the need for dentistry rising partly through the thousands of children entering dental clinics such as ours, the government of Israel began to consider putting dental services into the health services basket. In July 2010 the government began to insure dentistry for children under age eight through the “Kupat Cholim”. As a result, the PEF Children’s Free Dental Care Program continued to fill the void by raising the entrance age of the program to eight to twelve years old. • College Scholarship Program - PEF began distributing these scholarships to students in the 2000-2001 academic year. Initially 70 scholarships of $4,000 per year were distributed with the aim of providing lower income and financially challenged students with support so that they could focus more on their studies and less on supporting themselves and their families. The universities are responsible for selecting and vetting students. PEF provides checks directly to the students with the assistance of the Israel Free Loan Association (IFLA) which oversees the distribution. Following a bequest by Alfred and Anna Grey in 2008, scholarships have been considerably increased in number and amount. In the past year we provided over 300 scholarships at $7,000 per scholar to students at eight different Universities and Colleges in Israel. Over the eleven years of the program we have given 1,266 scholarships, for a total allocation of about $8,000,000. • High School Scholarships - This past year we gave scholarships to over 200 high schools, providing funds to over 3,500 disadvantaged students, ranging from $100 - $400 per student. The funds are used to help students pay for supplies and participate in outings and school trips, which the schools do not fund. This program is administered by the schools and under the supervision of our Vice President and trustee in Israel, Dr. Shulamit Bar-Shany, and has 5 been in operation since 1962 when Prime Minister David Ben- Gurion wrote to Robert Szold, then Chairman of PEF, requesting such a program. • High School Library Program - We received a grant from the Cooper fund to benefit high schools in Israel. In addition to the High School Scholarship program, it was decided that the best way to benefit needy high schools throughout Israel was to focus on renovating libraries which would serve students both during and after school hours, touch the entire student body and provide an environment which would uplift student self esteem and favorably impact study and extracurricular learning. A typical library renovation costs up to $70,000 and requires the local municipality to submit an application including a commitment to provide prepped space, books and the hiring of a full time librarian at the school’s expense. PEF, with the help of IFLA, and under the supervision of Dr. Bar-Shany, provides funds directly to the contractors and architects involved. The resulting libraries include computer areas, periodical browsing nooks, bean bags and architectural lighting and details that could be found in the best private school. With the Cooper Fund we established 27 libraries, all in secondary schools. Milton Gottesman donated funds for 12 schools after he read about the Cooper project in our annual report. Since his passing, the Gottesman family has built and or pledged to fund an additional 200 libraries at high schools, secondary schools and elementary schools throughout Israel. The 200 libraries should be completed in 2012. PEF is a unique philanthropic institution and we at PEF are extremely thankful for the wonderful work of the charities we support, the donors we serve and our dedicated staff. 6 As the recently appointed President of PEF, I am dedicated to continue the work of my predecessor, mentor and esteemed friend, Ben Frankel who continues to provide guidance and sage advice. Ben, in partnership with our Chairman, Harvey Brecher, and the dedicated trustees serving on our Grants, Investment and Executive Committees are a constant inspiration and work daily to insure our continued success. Geoffrey Stern President 7 P.E.F PEF Israel Endowment Funds, Inc. ISRAEL ENDOWMENT Selected information taken from the Financial Report for the Year FUNDS INC. Ended November 30, 2010 as audited by Greenfield and Fortuna, LLP, Certified Public Accountants. Revenue November 30, 2010 Interest and Dividends $2,209,913 Net Gain (Losses) from Investments 6,785,052 Contributions 45,113,843 Total Revenue $54,108,808 Expenses Grants $58,918,162 General and Administrative Expenses General Fund 5 - Allocable 787,600 Incurred by Individual Funds 4,692 Depreciation 2,749 Total Expenses $59,713,203 Excess of (Expenses over Revenue) ($5,604,395) Net Worth Cash (Including Liquid Assets Funds and $3,484,120 Time Deposits in US and in Israel) Receivable from Brokers, etc. 2,076,046 Marketable Securities (Market Value) 105,518,778 Other Assets 1,733,859 Fund Balance at Market $112,812,803 8 PEF has made grants to hundreds of charities in Israel this year. When P.E.F making a contribution, please include the 9 digit ID number along with ISRAEL the name of the charity. Please contact us to verify whether a charity is ENDOWMENT FUNDS currently registered with PEF before sending a donation. INC. Below is a representative sample. A.V. Israel 58-0240802 Assists hearing impaired children. Afikim New Paths for Children at Risk and their Familes 58-0485753 Aims to provide children living in poverty and at risk with relief for their immediate needs and to guide them towards long term excellence in education. Agudat Ezra Le-Kashish 58-0008266 Day care center for the elderly in Jerusalem. Agudat Nachalat Yechiel 58-0032993 Ahavah 58-0088995 A children’s village located in Kiryat Bialik. Ahva 58-0033058 Provides social and cultural programs for the handicapped in Haifa and the north. AKIM:Israel Assn Rehabilitation of Mentally Handicapped (Jerusalem) 58-0015519 AKIM: National (Tel-Aviv) 58-0034924 Aleh-Bnei Brak 58-0040301 Daycare center for physically and mentally handicapped children. Alma Hebrew College 58-0282341 Alternativa LaOleh 58-0403459 Alut-Israeli Society for Autistic Children 58-0064335 Alyn-Orthopaedic Hospital and Rehabilitation Center 58-0015881 Alzheimer’s Association of Israel 58-0130714 AMCHA 58-0104859 The National Israeli Center for Psychosocial Support of Survivors of the Holocaust.
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