2010 Annual Report Celebrating The New Philanthropists EnEnrichhiing and Suuppportingg Our Commum nnityy The New Philanthropists Celebrating People Who Have Made a Contribution to Our Community and Our Future Jordan Billinkoff – Continuing a Tradition of Generosity Jordan is a 21 year old student at the University of Manitoba’s Asper School of Business. He opened his Bar Mitzvah Fund in October of 2002, at the age of 13. Jordan believes in giving back to the institutions that have nurtured him. Jordan is honoured to be on the cover of this year’s Foundation Annual Report. He hopes to continue his philanthropic work and to serve as a positive role model for the youth of our community. Jason Gisser – Making an Impact Jason is 27 years old and practices law at Aikins, MacAulay & Thorvaldson LLP. In 2003 Jason was diagnosed with “Ameloblastoma”, a very rare benign oral tumor. Between 2003 and 2008 Jason underwent numerous procedures and reconstructive surgeries. In March of 2010 Jason established the Jason Gisser Fund for Oral Tumor Research. As a past recipient of the Foundation’s “Ruth and Joe Freed and Stephen Freed and Family Academic Award” Jason is honoured to be able to give back to the community in a meaningful way. Ahava Halpern – Proudly Supporting the Jewish Community Ahava is 46 years old and a graduate of Joseph Wolinsky Collegiate, where she learned the basis and importance of Tzedakah. Ahava says that her charitable giving stemmed from the example set by her parents, Esther and Sid, and through her connection to the State of Israel. She also attributes her dedication to community to her loving husband Frank Lavitt. In 2010 Ahava established a Women’s Endowment Fund at the Jewish Foundation of Manitoba and is encouraged by the wonderful work the WEF does in support of women in Manitoba. Alexander Serebnitski – Planning Ahead for Tomorrow Alex is 26 years old and has been practicing dentistry for one year. Alex was born in the Ukraine and moved to Winnipeg from Israel when he was 18 years old. Alex received numerous scholarships from the Jewish Foundation of Manitoba, assisting him in completing his studies and because of the generosity of our Jewish community, he was determined to give back. Alex established the “Serebnitski Family Fund” to assist students in their educational pursuits. Alex is a volunteer dancer with the Sarah Sommer Chai Folk Ensemble and is proud to be considered one of the new philanthropists. Liat Stitz – Sharing a Love of Music and Education Liat is 13 years old and has just completed grade 7 at the Gray Academy of Jewish Education. Liat established her Bat Mitzvah fund at the Jewish Foundation in September 2010 and in November was called to the Torah as a Bat Mitzvah. Liat is looking forward to distributing the income from her fund next year and is considering children’s charities in Israel. Liat plays piano and flag football, she goes to Camp Massad every summer and loves it. Liat hopes that using her Bat Mitzvah money to better her community will set an example for others to do the same. *2 Message From the President and CEO The Jewish Foundation of Manitoba receives and distributes the Foundation can continue doing the very important work millions of dollars every year and continues to excel because necessary to support both individuals and our community’s of a committed, engaged donor base and a talented team of many valuable service organizations. volunteers, staff and advisors. We truly care about the city of A number of new scholarships were established in 2010, most Winnipeg and the province in which we live and our Jewish notably from past scholarship recipients, reassuring us that our identity and sense of community are at the foundation of next generation is becoming engaged. As highlighted on our much of our success. The 2010 Annual Report confirms our cover, the ‘New Philanthropists’ are a symbol of the future for community’s future is indeed very bright. our community and Foundation. Some notable highlights of the year include $6.3 million in An important goal of the Jewish Foundation is to provide new donations, increasing total assets at year-end to over donors with opportunities to fulfill their philanthropic dreams. $71 million. The Foundation distributed $2.7 million in grants, By working together with them we are ensuring our most scholarships and donor-designated commitments. We are pressing and important community needs are being met. We encouraged by the growth of the Women’s Endowment Fund are grateful to our donors for their steadfast commitment as it nears the $1 million milestone. and support allowing us to be a strong foundation for the During 2010, the Foundation launched the Endowment community – thank you.you. Challenge; a matching program for organizations that is bringing new growth to many organizational endowment funds and will bring significant revenue to the Foundation over the long term. We continue to recognize donors joining Edward ShinewaldShinewald, PresidenPresidentt the Endowment Book of Life bequest program, which has grown to 640 signers in 13 years. To date these bequests have contributed one-third of the Foundation’s asset base. We can say with certainty that the generosity of our donors has ensured Marsha Cowan, CEO Jewish Foundation of Manitoba – 2010 Annual Reportporort 3 2010Highlights BUILDING CAPACITY FOR A BRIGHT FUTURE Grants and Education Awards Donations and Participation $2,701,735 in grants distributed $6,275,763 received in new contributions to 229 charitable organizations Gifts received from 14 estates for a total value of 71 students received education $4,937,460 awards for a total of $130,500 91 new named funds established Bar and Bat Mitzvah 28 individuals committed to leaving a bequest fund-holders distributed $14,940 through the Endowment Book of Life to 55 different organizations 27 young people opened Bar or Bat Mitzvah funds 14 new Women’s Endowment Funds Assets and Performance Women’s Endowment Fund capital reached $927,381 and surpassed $261,456 in grants to 61 Manitoba organizations since inception Total investments earned +8.84% FOUNDATION CUMULATIVE CAPITAL AND GRANTS Cumulative Capital: 70 $71.7 million 60 Total Cumulative grants: 50 Cumulative Capital $39,745,522 40 30 $ In Millions 20 Cumulative Grants 10 0 1996 1997 1998 1999 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 YEAR (book value 1964-2005, Market value beginning 2006) *4 Message from the Director of Finance & Operations The 2010 financial statements convey the good news that the major portion of the negative impact from the economic events of 2008 is behind us. The Foundation’s asset value exceeded $70 million thanks to the continued confidence and support of our donors. During 2010, gifts totaling $6.3 million increased the contributed capital of the Endowment Funds to $71 million. The growth provided by your endowment gifts translate to an increasing pool of income that is available to the community in the form of undesignated and designated grants and scholarships. The market recovery that commenced during 2009 contributed greatly to 2010 operating performance. The 2010 investment return of the invested capital was 8.84% (net). A positive turnaround from 2009 of +$4 million in realized capital gains enabled the Foundation to disburse and/or commit to $2.7 million in undesignated and designated grants and contribute $2 million to the 2009 operating deficit. Our objective for 2011 is to work hard to continue the positive momentum through appropriate stewardship. The Investment Committee consists of a group of volunteers that bring to the table in-depth investment and business acumen. These dedicated individuals are a highly cohesive group; setting and implementing policy in accordance with dynamic market conditions. Their efforts contribute greatly to the overall long term success of the Foundation. As part of our philosophy of “kaizen” or continuous improvement, the Foundation has recently invested in technologies that will serve to enhance our connections with the community. Our objective is always to strive for an even higher level of service and greater efficiencies. Ian Barnes, CGA Director of Finance & Operations Jewish Foundation of Manitoba – 2010 Annual Reportporort 5 May 9, 2011 2010Financial Statements Report of the Independent Auditor on the Summary Financial Statements The following financial statements are excerpted from the Jewish Foundation of Manitoba’s audited Financial Statements as reported on by PricewaterhouseCoopers. To the Board of Directors of the To obtain complete financial statements, please visit our website at www.jewishfoundation.org or call our office at (204) 477-7520. Jewish Foundation of Manitoba The accompanying summary financial statements, Summary Statement of Financial Position which comprise the summary statement of As at December 31, 2010 financial position as at December 31, 2010 and 2010 2009 the summary statement of revenues, expenses $ $ and grant commitments for the year then ended Assets are derived from the audited financial statements Current assets of the Jewish Foundation of Manitoba for the Cash 3,387,358 2,612,596 year ended December 31, 2010. We expressed Investment income receivable 296,338 297,228 an unmodified audit opinion on those financial Accounts receivable 30,175 16,755 statements in our report dated May 9, 2011. Prepaid expenses 27,915 20,723 3,741,786 2,947,302 The summary financial statements do not contain all the disclosures required by Canadian generally Other assets 7,803 7,803 accepted accounting principles. Reading the Investments - at market 66,850,872 60,746,078 summary financial statements, therefore, is not Investment in private company 706,111 747,461 a substitute for reading the audited financial Real estate 82,501 82,501 Capital assets 73,416 83,367 statements of the Jewish Foundation of Manitoba.