ii~-,;~'-~ . ~~;:-::--' ". t>~ ;{ ...:­ ~ ~­ DOES THE DIASPORA INFLUENCE ISRAEL? ~~. 'l-' !( THE CASE OF THE RECONSTITUTED JEWISH AGENCY ~, I ~; CHARLES S. LIEBMAN i ~­ i':­ ~." THE question'of what role and how much method is to explore the use or lack of ;>•. ~. influence diaspora Jewry should or use by diaspora Jewry of instruments and ;.: should not have in shaping Israel's public institutions which on the surface, at least, II t-. provide the opportunity for the exercise ~'. policy has received increasing attention in ~,­ both Israeli and diaspora circles in the past of influence. Such an institution, par ex­ ~,.~ few years. In point of fact, Israel has consi­ cellence, is the reconstituted Jewish Agency. dered diaspora Jewries' needs in formulat­ The Founding Assembly of the ~econsti. l ing its public policies, but they have been tuted Jewish 'Agency took place in June f' diaspora "needs" as defined by Israel. 1971. The agreement on the reconstitution If,,· .' was approved in February 1970 by the ~" World Jewry has exercised very little in­ major participants-the Zionist General .. t-' fluence on Israeli policy in the sense that t: it has pressured Israel into adopting poli­ Council on behalf of the World Zionist cies which Israel would not have adopted Organizations; the United Israel Appeal in the absence of diaspora pressure. Inc. (UIA), the recipient organization with­ There are various methods for attempting in the United States of funds raised for Israel through the agency of the United ..) to understand this phenomenon. One such ~ Jewish Appeal; and the Keren Hayesod, the :~ major fund raising agency for Israel in Professor Charles Liebman heads the Depart­ countries outside the United States. In ment of Political Studies at Bar-I1an University, other words, the Jewish Agency repre­ Ramat Gan, and is the author of studies on s~nts the World Zionist Organization and Jewish life in America. the major Jewish donors to Israel. The This is a revised version of part of a 'manu­ script, Pressure Without Sanctions: The Influence good will and cooperation of these don­ 'i-, of World Jewry In Shaping Israefs Public Poli­ ors is vital to the State of Israel. But ...­ cy. The chapter, published here for the first to understand what the reconstituted JA time, was prepared prior to the Yom Kippur ".: is, what it can do with respect to Israeli ~~ War. policy, atJ,d equally important what it does The author wishes to thank his colleagues of j the Center for Jewish Community Studies for not and cannot do, we must briefly review ,-1 . ,helpful comments and suggestions. the background of its creation. I~> (.!. ,~.... ",iJ.' ~. ki\· t1-.:"'~. _ . DOES THE DIASPORA INFLUENCE ISRAEL? 19 Nahum Goldmann's efforts to expand their local community could offer. Many As we noted, virtually and broaden the JA to include non-Zionist federation leaders were acquiring a new community in the United S as well as Zionist bodies met with limited self-image of themselves as people respon­ form of a federation or success in the 1950's. Goldmann's efforts sible for initiating, planning and coordinat­ fund. These funds run c were directed primarily at enlisting the ing programs at the local level rather than paigns for local, national at major American Jewish organizations. AI· simply funding ongoing programs, and they Jewish needs. In the last fe' though he failed to secure their participa­ transfered this new self-image to their three quarters of this mone tion at the political level, changes took Israel activities. Finally, an increased con­ international Jewish needs, place in the 1960's which,increased Ameri­ fidence in their own Americanism permit­ has been transferred from t - can Jewish participation at the technical ted federation leaders to allow themselves tion and welfare fund ca level. First of all, CJFWF leaders at the the luxury of also being involved in the United Jewish Appeal. OnI: national and local levels were seeking, on affairs of another country3. City did the UJA run an inc at least a modest scale, forms of coopera­ A second reason for the increased par­ but after the Yom KippUl tion with Israel that went beyond just ticipation of American fund raising leaders of Greater New York and "sending money". They felt they had in WZO-JA activity at the technical level of Jewish Philanthropies of knowledge and experience to offer Israel came as a consequence of American tax cided to merge into a single and they sought some framework to ex­ laws. The Internal Revenue Service of the Jews in New York and press their increased sense of partnership United States Department of Treasury re­ major beneficiaries of UJA with Israel2• quires that funds raised in the United States Joint Distribution Committl There were a variety of reasons for this for expenditure outside the U.S. must, in The latter receives well ove change of attitude. Some philanthropic order to qualify for tax exemption, be ex­ the money collected for ove leaders who were once indifferent or even pended under the supervision of a non­ der a rather complicated fo antagonistic to Zionism had turned into governmental agency which is controlled not concern us here. enthusiastic sympathizers of Israel. Others by the American fund raisers. The organi­ Thus, the bulk of the t were searching for new outlets and broader zation established in 1960 to meet the re­ by Jewish federation and horizons for Jewish activity and were un· cently tightened requirements of the Trea­ goes to the UIA. The UIA satisfied with the focus of activity which sury Department concerning American tax fers its funds to the Jewisl exempt organizations operating overseas, ever, in accordance with lJ was the organization today known as the Service requirements, the U 4. ly turn the money over to 1 The CJFWF (Council of Jewish Federation United Israel Appeal Inc. (UIA) and Welfare Funds) is the roof organization of latter to do with it as it all the local Jewish Community Federation and all, the IRS requires thaI Welfare Funds in the U.S. Since it is the local fund raising organization Jewish Federations and Welfare Funds (different 3 This last point was suggested by Zelig Chinitz, the dispersal of funds. For communities use somewhat different names), who present UIA representative in Israel; interview, JA (i.e. the WZO-JA unti conduct the philanthropic campaigns for Israel September, 1972. as well as for local and other national needs, 4 The organization actually established in 1960 tion of that organization iI the leaders of the CJFWF, in fact, are the lead­ was the Jewish Agency for Israel Inc., an or­ signated as the agent of ars of American Jewish philanthropy. ganization distinct from the Jewish. Agency­ this, however, was not S1l 2 Interview with Philip Bernstein, Executive American Section, which was the American Sec­ not all of the old WZo-J vice-president of the CJFWF, March, 1973. See tion of the Jewish Agency executive. In 1966 were tax exempt. For exam .' also Zelig Chinitz, "Reconstitution of the Jewish the UIA was formed by a merger of the Jewish Agency", Jewish Frontier, 37 (December, 1970) Agency for Israel Inc. and the old Keren Haye­ activity within the United p.7. sod United Israel Appeal. encouraging immigration c 19 20 FORUM :>mmunity could offer. Many As we noted, virtually every Jewish tion of Zionist youth groups, was certainly aders were acquiring a new community in the United States has some not tax exempt. Consequently the UIA themselves as people respon­ form of a federation or Jewish welfare designated the specific programs of the lting, planning and coordinat­ fund. These funds run combined cam­ WZO-JA which it was willing to fund and at the local level rather than paigns for local, national and international it sent a representative to Israel to ensure ;g ongoing programs, and they Jewish needs. In the last few years roughly that funds were being spent in accordance is new self-image to their three quarters of this money has gone for with its mandate. ~. Finally, an increased con­ international Jewish needs, i.e. the money Thus, as early as 1960. American Jewish ;if own Americanism permit. has been transferred from the local federa­ fund raising leaders had a large voice in I leaders to allow themselves tion and welfare fund campaign to the the activities of the WZO·JA. This state­ : also being involved in the United Jewish Appeal. Only in New York ment. however. must be qualified. First of ther country3. City did the UJA run an independent drive, all. Zionists were also represented on the -eason for the increased par­ but after the Yom Kippur war the UJA U1A5. Secondly. the UIA did not initiate ~merican fund raising leaders of Greater New York and the Federation programs. It merely designated those pro­ lctivity at the technical level of Jewish Philanthropies of New York de­ grams in the WZO-JA budget which it .nsequence of American tax cided to merge into a single agency serving was willing to support. For example. the ~rnal Revenue Service of the Jews in New York and overseas. The WZO-JA activities in the United States :,Department of Treasury re­ major beneficiaries of UJA funds are the which were not tax exempt were financed Ids raised in the United States Joint Distribution Committee and the UIA. by income from countries outside the U.S. ~e outside the U.S. must, in The latter receives well over two thirds of Thus. the fact that the UIA designated ~ for tax exemption, be ex­ the money collected for overseas needs un­ those programs it wanted to support had -, the supervision of a non­ der a rather complicated formula that need very little impact on WZO-JA programs.