1. Partnering
with you to secure the Jewish future
2008/09 Performance Report
Jewish Agency for Israel

2. leading partnering with purpose
As we celebrate our 80-year journey, we’re not looking back—we’re looking
forward. For eight decades, the Jewish Agency has convened the Jewish people
in an unmatched global partnership with a singular purpose: securing the
future of a connected global Jewish people with a strong Israel at its heart.
Created in 1929 as the “working government” of a people without a state, with
little more than vision and commitment in hand, that was a tall order. Always
future-focused, we have made history together. As the pioneering force in the
establishment of the State of Israel, and today, as the Jewish world’s most
connecting collaborating effective nonprofit, our global partnership has brought more than 3 million
Jews home to Israel since 1948. We are the leader in partnering the people of
Israel with communities and donors worldwide to meet today’s challenges,
reaching deep into the heart of disadvantaged communities to promote
opportunity and create truly transformative change for Israel’s at-risk youth.
Together, we are making Israel a living part of Jewish communities around the
world. Forging peoplehood. Innovating to connect the Jewish world’s new
generations through powerful, transformative experiences. No other
organization has accomplished more and adapted to emerging challenges with
greater impact. Impact made possible through your annual campaigns around
the world. But one of the many things we have learned along the way is that
there are no timeouts. A year ago, if we had a discussion on the hot spots in the
Jewish world it would have been vastly different from the one we need to have
today. Who is going to be there as global issues unfold? Who will bring the
extraordinary force of a united, caring global community to the table? You.
Figuratively and quite literally, you power this global partnership that continues
to be one of the greatest strategic assets of the Jewish people.
Every generation has taken its turn at the wheel. Now it’s yours.

3. As the war
against civilians
in southern Israel
partnering in times of crisis escalated last
In Israel and across the globe, in times of crisis and peril,
you are part of the Jewish world’s first responder team. year, you stood
by their side.
For more than 40,000 children living in the
shadow of fear, that meant at least one day
with no ‘code red,’ no sirens, no rockets.
Learn more at www.jewishagency.org/crises
2 Jewish Agency 2008/09 Performance Report

4. partnering in times of crisis standing by the side of Israelis under siege and
rescuing Jews around the world when lives are at risk.
You provided You saved lives
immediate aid to in 10 countries
Israelis victimized last year; in 15
by continuing countries during
violence. the past decade.
No red tape, no waiting. Immediate Where will we be needed next? No one
help for immediate needs. knows. But we do know we’ll be there.
monItorIng JewIsh communItIes At rIsk
There are over 60,000 Jews living in countries where
they are at risk. Life is increasingly tenuous for the
remnants of Jewish communities living in Arab
countries. Less obvious but equally troubling is the
situation in many countries that are experiencing
a convergence of economic collapse and rising
anti-Semitism, or those that have cut all diplomatic
ties with Israel. The Jewish Agency continuously
Last year you brought this family monitors the situation around the world, ready to
from Yemen home to Israel. act. Ready to keep the promise that any Jew, for
any reason, can make Israel home. Last year, the
same day that Russian bombs fell on Georgia, we
put that promise into action, moving in to rescue
Jews in imminent danger. Just one example of the
lifesaving work you make possible.
“ It is difficult to convey the utter fear, the
terror, and the emotional and physical
devastation of a rocket attack ...”
Read the story of this mother of two young
children at www.jewishagency.org/michal VIctIms of terror fund crIsIs counselIng remote leArnIng for kIds renoVAtIng bomb shelters
10 508 dilapidated
As Kassam rocket fire on the As attacks escalated and
southern part of Israel escalated, Our absorption schools closed in the south, the
the Fund—established by the centers in the line of fire Israeli business community led shelters in the South
United Jewish Communities Israel had special crisis management our partnership in providing that were deemed unsuitable
Emergency Campaign and Keren workshops for adult residents to hundreds of computers to for use were renovated. Your gift
Hayesod—established an help them navigate Operation children having to transition from leveraged a 2:1 match by the
emergency component to provide Cast Lead and a range of group classroom to remote learning. Ministry of Housing, enabling us
immediate financial assistance for and individual counseling to to equip these shelters.
urgent initial needs. In just the help both young children and wArtIme hotlInes were set up
last six months, some 111 victims adolescents deal with anxieties. for both absorption center residents Your support is
received this aid, totaling in excess and staff for additional support. making a difference
of $100,000. Since 2006, the Fund for victims of terror.
has allocated some $6 million in Learn more at
direct aid nationwide. www.jewishagency.org/crises
4 Jewish Agency 2008/09 Performance Report

5. Last year you
gave 200
partnering to strengthen Israel and empower change Ethiopian-Israeli
A strong Israel will reflect the collective best efforts of the
Jewish people. You are indispensable to that effort. preschoolers a
critical head start
not just in school,
but in life.
The results? A 26% increase in their
knowledge and command of Hebrew,
reading and writing.
Read the evaluation at www.jewishagency.org/yesodot
6 Jewish Agency 2008/09 Performance Report

6. partnering to strengthen Israel and empower change
2,477 young You supported
immigrant 31 young
soldiers communities
discovered transforming
the richness of Israel’s social
their Judaism and geographic
because of you. periphery.
Of those not born Jewish, 85% opted Empowering change for thousands of
to continue with conversion studies. at-risk youth in the Negev and Galilee
Young social change activists have come
together to form educational communities to
infuse underdeveloped areas of the Negev and
Galilee with a new energy and capacity. While
each community embraces its own model,
“ I love the learning and the people. I feel that I its enterprising college students and recent
know so much more about what it means to buIldIng A new lIfe In IsrAel lIVIng the AlIYAh dreAm exPlorIng AlIYAh oPtIons PAVIng the wAY for success post-army adults are committed to giving
be Jewish and an Israeli ...” Aliyah remains Israel’s lifeblood— 172 parents of lone immigrant The new ALIYAH JOb CEnTEr back to the community, the majority working
Read the story of this young soldier participating in
NATIV at www.jewishagency.org/margarita
especially at this critical stage of
building a modern democracy.
At the Jewish Agency, we’re there
15,441 newIsrael
immigrants came to
soldiers from the FSU had an
incredible one-week reunion with
provided in-depth personalized
employment services, advisors
with disadvantaged youth. Today, 1,700 young
pioneers in 31 urban and rural communities are
working with 30,000 children in these areas.
each step of the way. Many young
immigrant soldiers and students in 2008, including 3,210 from north their children in Israel through and an information-rich portal
come to Israel on their own from America, strengthening communities our KESHET program. into the job market in Israel.
the former Soviet Union on one of
our unique aliyah programs to build across the country. 191 young adult olim from
a better life for themselves in Israel.
Once here, our full continuum of
support includes programs like the
12,400 newcomers living in one of 32
absorption centers are transitioning
80,000 people
in the FSU, 5,200-plus
Ethiopia were put on a fast track
to education through our KEDMA
NATIV Jewish identity program,
to life in Israel through a range of in France and 2,400 in north absorption program.
which solidifies their connection to
the Jewish state and our heritage, acculturation programs; 9,000 new America explored aliyah 1,549 olim families and singles
and the Wings program, providing immigrants learned Hebrew in our possibilities through fairs,
assistance for lone soldiers before connected to a community-wide
their army discharge. ulpan sites. community activities, seminars network of support through our
and individual counseling. national AT HOME TOgETHEr Whether new immigrants or
850 young people from the FSU born and bred Israelis, these
started new lives on their own in volunteer program with veteran
olim and Israelis. young people constitute
Israel through our young-adult the most important human
aliyah frameworks. capital of the Jewish people
and the State of Israel.
Learn more at
www.jewishagency.org/youngcommunities
8 Jewish Agency 2008/09 Performance Report

7. partnering to strengthen Israel and empower change
You are giving
6,500 at-risk
Israeli youth the
tools to compete
on a level playing
field. What do
they think? 85%
want to do more.
And what do the overwhelming majority of
their parents think? It’s life-transforming.
The rise in the number of youth at risk is one of
the most serious social problems facing Israel.
Particularly in the Negev and Galilee, the widening
socioeconomic gap is consuming the futures of
“ My job is to support these children in every
tens of thousands of Israel’s children and youth, aspect of their life ... I help them understand
they are special.”
ages 6-18. In a community-wide response that
partners you with Israeli philanthropists, YOUTh Read the story of this young trustee working with
FUTURES is changing the equation. Key to its YOUTh FUTURES at www.jewishagency.org/moran
success is a team of young adult trustees who serve
as role models and supportive adult figures for
each child. last year 350 trustees in 32 locations
worked to develop personalized approaches
to bridge critical gaps—educational, social and
extracurricular—in order to dramatically increase
the number of youth who reach their potential.
InterVenIng for At-rIsk Youth
1,200in nET@, teens are
AdVAncIng equAl oPPortunItIes
1,000 youthoratpart participating
454are getting on a
Last year we transformed the lives
of more than 22,000 youth at risk a three-year after-school college
high risk, living full through our innovative programs. technology program with students
time in a YOUTH ALIYAH village, partners Tapuah, Cisco and Keren fast track to career success
are receiving the educational
and emotional support to not only 13,000-plus
disadvantaged students
Hayesod, in 22 communities. High
tech will be a pathway to success
through an internship at one of
142 companies participating in
heal, but to thrive. for these students. ATIDIM for Industry.
in 169 high schools, primarily in
Youth Futures trustees are
Some 857 Ethiopian-Israeli the negev and galilee, received 15,000 youth explored 78 students, committed to giving changing the equation for
students achieved extraordinary enriched educational support to new ideas in a short-term back as community professionals, Israel’s disadvantaged youth.
levels of academic success with the ensure they can compete equally educational or social program are getting advanced degrees as
support of ATIDIM programs. for the prestigious IDF Academic at nITzAnA, our educational ATIDIM Cadets for Public Service Read the evaluation at
reserves through PrE-ATIDIM. community in the negev. at Hebrew University. www.jewishagency.org/youthfutures
10 Jewish Agency 2008/09 Performance Report

8. Last year you
partnering to connect and engage new generations helped 8,200
You are leading the way in building Jewish identity, using the
power of Israel to infuse tomorrow’s leaders with enduring commitment.
young adults
from 48 countries
participate in a
long-term Israel
experience.
Future impact?
72% will volunteer in Jewish
organizations, compared to 25% of
non-participants—the foundation for
tomorrow’s Jewish communities.
Read study highlights at www.jewishagency.org/masa
Learn more at www.jewishagency.org/masa
12 Jewish Agency 2008/09 Performance Report

9. partnering to connect and engage new generations
Last year you
gave 5,000 youth
in the FSU an
identity-building,
life-defining
camp experience.
88% want to come back again next year. The
impact on their community? Immeasurable.
Our unique camping experience at 40 camps
throughout the FSU continues to be an entry into
Jewish life for thousands of youth ages 8-17. Just
one part of our multiprong approach that uses the
power of Israel to ignite connection in communities
struggling with a 80% rate of assimilation.
Read the evaluation at www.jewishagency.org/FSUcamping
brIngIng IsrAel Into JewIsh communItIes Around the world
10,000 100,000
11,000 Jews in the FSU learned Hebrew 11,000 youth and 2,000 teachers in 20,000 students in formal Jewish
Some youth in 44 and Jewish culture at our ulpanim, and buenos Aires and its surroundings are education, and 2,000 children in More than
Jewish day schools and 2,000 more than 20,000 young Jews attending being enriched through our Jewish supplementary Jewish education at 66 youth were connected to Israel
in 90 Sunday schools in the FSU benefited Jewish Agency youth clubs were identity programming. centers in Argentina, are receiving the by Jewish Agency professionals in Jewish
from the power of our Jewish education. connected to our history and heritage. foundation for building Jewish lives. day schools around the world. More
than 1,000 educators served as vital
educational resources, including 400
In the FSU, 400 youth enrolled in our
SHOrASHIM (“roots”) program and other 3,000-pluseducators Through Machon Institute for Youth
Leaders from Abroad, a record 520
30,000-plus students and educators
from around the world had online and
young volunteers/educators.
Holocaust study experiences deepened worldwide Jewish young adults trained to become leaders on-demand access to Jewish Agency
their understanding of Jewish identity in had their horizons widened in our for Israel-centered education in their e-learning programming, including 20
the context of 20th century history. advanced training courses in Israel. own communities. courses at our e-academy.
engAgIng new generAtIons In trAnsformAtIVe IsrAel exPerIences
47 young north Americans volunteered
through the year-long Jewish Agency
20,000 young Jews were introduced
to Israel on short-term programs
1,400 young Israelis served in north
American summer camps, impacting tens 40,000-plus young no organization is putting
and UJC/Federation Otzma program. through the Jewish Agency-supported of thousands of youth by bringing the Jews were transformed Israel into the lives of more
Taglit-birthright Israel and our Israel vitality of Israel into the camp experience. by participating in either a short- or young people worldwide.
Experience subsidiary, including 1,800 200 young Israelis served in summer camps long-term Israel experience, including
young people from the FSU. throughout the former Soviet Union. hundreds of Eastern European youth. Learn more at
www.jewishagency.org/education
14 Jewish Agency 2008/09 Performance Report

10. Last year you
connected
11,000 young
partnering to build living bridges into the Jewish future
No matter where we live, we all share equally in securing the Jewish future. people from
You are transforming “one people” into a dynamic reality.
your partnered
communities to
one another.
In a volunteer effort connecting 550 global
communities in 45 partnerships with Israel,
you’ve set a new paradigm for partnering
with mutual impact.
Learn more at www.jewishagency.org/partnerships
16 Jewish Agency 2008/09 Performance Report

11. partnering to build living bridges into the Jewish future
You are
reimagining the
why, what and
way of Israel in
the Jewish life of
your community.
Building on existing community resources
through MAKOM, Jewish Agency professionals are
collaborating with local leaders in 13 North American
communities to imagine new ways to put Israel into
the heart of Jewish life. From creating and delivering
compelling educational, cultural and travel content, to
experiences that deepen individual and community
engagement with Israel, each multiyear strategy is
unique to the specific community but the content and
learning that develops from them are shared beyond.
Learn more at www.jewishagency.org/makom
forgIng PeoPlehood connectIng for mutuAl ImPAct mobIlIzIng Volunteers
A connection to Jewish heritage,
identity, Israel and our people
Our second annual Israel/Diaspora
business-to-business initiative to 70,000-plus Israelis 35 young Israeli volunteers from
seven Partnership 2000 regions spent
was ignited for 40,000-plus engage business leaders as agents of participated in educational, a year making Israel a vibrant part of
individuals in Jewish and social change had a six-fold increase community and economic development 13 north American communities.
Israel-oriented programs at our in the number of participants. P2K projects; an additional 130,000
people attended large-scale P2K events.
280 women from to
cultural centers in Moscow, St.
Petersburg and Kiev.
40,000 people,and Partnership 2000 steering committee communities worked
14
half of whom were youth members from around the world, P2K advance women’s health in Israel,
young adults, participated in our professionals, and mayors representing participating in PrOJECT ISHA, a
Partnership Living bridge projects to the 45 partnerships from Kiryat Shmona collaborative project initiated by Learn more about how
build people-to-people connections. to Eilat, came together to share best the Cleveland Jewish Federation
you can connect with the
practices and chart new ways to connect at global Jewish partnership.
and implemented with the Israel
conferences held in Israel prior to the UJC Association of Community Centers. Visit us at
gA general Assembly in november 2008. www.jewishagency.org/partnerships
18 Jewish Agency 2008/09 Performance Report

12. a message from our leadership implications of the economic crisis in 2009
defining global Dear friends, Administrative Cuts Employee reduction
We are the only global
partnership governed by Jews In these turbulent
from around the world and
Israel. The decision-makers that
guide our global partnership
times, we are all $13.2 million
in administrative
budget cuts in 2009,
11%
reduction
in personnel;
are your colleagues, your
friends. People who care deeply challenged in ways $18.9 cut since 2006 20% since 2006
about the Jewish future. we could not have predicted a year ago. This is not just a
global recession—this is a game-changer. No part of the
Seats at our global partnership table
Jewish world remains untouched. The bold steps that we
put in place before and during this economic crisis enabled AlIgnIng to meet the future We are a very different We made these sweeping changes by building consensus
the global Jewish partnership to provide a high level of organization than we were just four years ago. Our global and engaging the Jewish world’s most far-reaching and
Australia service to our beneficiaries while responding powerfully to partnership has consistently remained a force for change representative Jewish leadership. As we look around
18%
Canada emergency situations as they arose. As Israel was forced to specifically because of its capacity to strategically realign to the Jewish Agency global partnership table it is that
Europe defend its civilian population in the South, we immediately meet new challenges, to overcome emerging obstacles, to extraordinary range of world views that enriches the
Latin America leverage new opportunities. The Jewish future demands it. very nature of our partnership. Today, we are embarking
42% deployed critical resources. We deeply appreciate the
South Africa on a process to evaluate the strategic plan in the context
response from Federations, United Jewish Communities, As we implemented the strategic plan forged by our global
Keren hayesod, the International Fellowship of Christians leadership in 2004, we refocused our work to align with our of today’s realities to ensure that we move forward from a
Israel and Jews and the Israeli business community in supporting core competencies and areas where our partnership can strategic rather than a reactive perspective.
40% critical needs, particularly in these financially complex times. achieve the greatest impact. That has always been the strength of this unmatched
United States global partnership… the vision to see where we need to go
Given the serious repercussions of the economic situation We also set out with the goal to focus our work on
on the Jewish Agency and our funding partners, we the Jewish world’s new generations—we have. We set and the will to do what it takes to get there. Our task is to
continue to work hard to identify and implement solutions out to reimagine the global Jewish partnership in the prepare the Jewish world’s only global partnership to lead
to exact the greatest possible impact from every single context of 21st century realities. We did. Today, we are in the new era. The single most important message that
Active throughout Israel dollar spent. Now, as always, our beneficiaries are our most we want you to take away is the indispensable role you
partnering Israeli business and philanthropic leaders with
and more than 60 countries important priority. In order to maintain budgetary balance, our worldwide partners to invest in initiatives for new play in this extraordinary partnership.
around the world, we are we have slashed expenditures by $73.4 million in 2009. immigrants, children at risk, and talented young people Now, as in the past, as each generation drives this
the only global organization We continue to make major reductions in personnel. Since from underprivileged regions. We made a commitment to partnership forward it leaves its mark. At this moment of
focused on connecting new 2006, our permanent staff has been reduced by 20 percent engage more volunteers in our work. Today, an Israeli public incredible challenge and possibilities, it’s our turn.
and as you can see from the charts on the facing page, is paving the way to success for new immigrants.
generations to Israel—and
administrative cuts have been just as deep. We are now
to each other. implementing changes to our organizational structure to
To execute the new strategies successfully, we made
comprehensive changes in how we do our work. We
not only reduce costs further but to increase efficiencies
implemented new operational and management systems,
by centralizing key functions. While we continue to make Richard L. Pearlstone hagai Meirom
Each year we engage thousands a new approach to customer service, and a commitment Treasurer
every effort to minimize the negative fallout on our Chair, Board of Governors
of volunteers worldwide in our beneficiaries, unfortunately, we have also had to make
to measure and evaluate our impact. We created a culture
partnership—the only global of transparency and inclusiveness within our management
major reductions in essential programs in order to be able
partnership singularly focused team and among our lay leadership. We shifted key
to responsibly manage these financial realities.
decision-making into our major markets allowing our
on securing the future of a But as we have for eight decades, we see opportunity in professionals to utilize their critical on-the-ground Shoel Silver Moshe Vigdor
connected Jewish people with this moment of change and challenge. We entered this knowledge to add value to our work. We accelerated Chair, Budget/Finance Committee Director General
a strong Israel at its heart. time of uncertainty stronger and more focused and are efforts to integrate our global operations and transform our
positioned to emerge with even greater capability. service delivery by leveraging technology more effectively.
20 Jewish Agency 2008/09 Performance Report

13. Management
Discussion & Analysis
The main fiscal issue for most of 2008 was Almost all this income was derived from the payments by the
the collapse in the shekel value of the U.S. dollar Government of Israel in respect to the sale of apartments owned
by the Jewish Agency and by some of its major supporters
during the first nine months of the year.
(hereafter – Amigour Apartments) under an agreement signed
in February 1999. Under the terms of the 1999 agreement, this
revenue stream is expected to continue for the next six years.
Although the majority of the Jewish Agency’s income is
received in U.S. dollars, the majority of its expenditures are During 2008, the Jewish Agency’s accumulated deficit in net
made in Israeli shekels. unrestricted assets increased by nearly $12 million, from $201
million at the end of 2007 to $213 million at December 31, 2008.
During 2008 there were wild fluctuations of the shekel-dollar
exchange rate, which resulted in a severe weakening of the The signal achievement of a positive working capital surplus at
U.S. dollar against the Israeli shekel during most of the year, the 2004 year end has been sustained in subsequent years.
as seen in the table below. Bolstered by the cash receipts from the sale of the Amigour
Apartments, the Jewish Agency has enjoyed a substantial
The average exchange rate for 2008 was $1=3.59 shekels as improvement in its liquidity over the past several years. The
compared to an average exchange rate of 4.11 shekels to the Jewish Agency’s working capital surplus (current assets less
dollar during 2007. As a result, the Jewish Agency’s cost in current liabilities) was $49 million at December 31, 2008 as
dollars of shekel-denominated expenditures was 14.5% compared to $58 million at December 31, 2007.
higher on average during 2008, as compared to the same
shekel-denominated expenditures in 2007. The Jewish Agency’s total revenues increased by 7% during
2008 and amounted to more than $641 million, compared to
In addition to the challenges encountered as a result of the $600 million in 2007. This is the highest revenue for the Jewish
exchange rate, the onset of the economic crisis affected the Agency in more than 15 years.
unrestricted, core income of the Jewish Agency, which in
2008 was approximately $6 million lower than its 2007 level. 2008 saw an expansion in the scope of the Jewish Agency’s
operational expenses, not including financial expenses, of
These two factors were the primary causes of a $29 million more than 11%. These expenditures totaled $660 million
deficit from activities incurred in 2008. compared to $594 million in 2007.
In parallel, the liability to the Pension Fund increased by The portion of the Jewish Agency’s operational expenses that
nearly $41 million. It stood at $197 million at December 31, fell within the framework of designated projects and
2008 as compared to $156 million at December 31, 2007. This allocations, other than projects funded by the grant from the
increase remained following a special contribution by the U.S. Government, amounted to $247 million compared to $234
Jewish Agency of $25 million to the Pension Fund. The million in 2007, an increase of nearly 6%.
liability grew despite the fact that the actual yield received on
At the beginning of the year, a historic agreement was reached
the invested assets was nearly double the discount rate used
with the kibbutz sector regarding the settlement of the sector’s
in the actuarial calculation.
debt to the Jewish Agency. As a result, revenues of nearly $31
Revenues from asset realization of $45.4 million were utilized million were booked, with the proceeds used as the seed
for the improvement of the Agency’s financial position. money for an endowment fund.
Jewish Agency 2008 financial highlights
Volatility of the Shekel-Dollar Exchange rate 1999-2008 Working Capital Surplus / Deficit
22 Jewish Agency 2008/09 Performance Report

14. Trends for 2009 Consolidated
The major challenge and focus for 2009 will be to maintain a The MASA program, which is funded jointly with the
balance Sheets as of December 31,
balanced budget. Due to the worldwide economic slowdown, Government of Israel, and facilitates Jewish students
the Jewish Agency is facing three converging challenges: the spending an extended period in Israel, brought more than
risk of declining revenues, increasing demands and underlying 8,000 young Jews to Israel during the 2007-2008 academic
inflationary forces. In addition to the economic slowdown, the year, maintaining the participation levels of the preceding
“Madoff “ fallout has made fundraising more difficult. Steps year. It is not expected to dramatically expand during the 2008 2007
Thousands US $ Thousands US $
have already been taken to enable the Agency to maintain forthcoming year.
a balanced budget by encouraging early retirement of As a result of the continued sale of the Amigour liabilities, net of deficit in net assets
veteran employees, prioritizing of the Agency’s activities and Apartments to the Government of Israel, and assuming Current liabilities
undertaking a major efficiency drive. that the measures taken to maintain a balanced budget Short-term credit from banks 449 270
Despite the existing budgetary pressures, the Agency’s first are sufficient, it is expected that there will be a continued Accounts payable 102,178 121,530
priority for cutbacks will be focused on creating efficiencies. reduction of the Jewish Agency’s debt and an improvement Liability for employee rights upon retirement, net 5,000 25,000
Only when this avenue is exhausted will the Agency’s of its financial position, including its working capital. Current maturities of long-term bank loans and deposits payable 13,107 16,009
programs be affected. Offsetting this, the uncertainties in the financial markets and
Total current liabilities 120,734 162,809
the decline in the Israeli economy may have an impact on
Where appropriate, the Jewish Agency will continue to strive
the performance of the Pension Fund, which would widen Long-term liabilities
for the creation of new strategic partnerships with major Israeli
the existing unfunded pension liability. Bank loans and deposits payable 53,514 62,282
donors to further support its activities.
Liability for employee rights upon retirement, net 238,795 174,233
Other liabilities 15,415 16,880
Total long-term liabilities 307,724 253,395
Minority interest 256 261
Consolidated
Deficit in unrestricted net assets (213,185) (200,985)
Temporarily restricted for projects 166,117 179,333
balance Sheets as of December 31, Total deficit in net assets
total liabilities, net of deficit in net assets
(47,068)
381,646
(21,652)
394,813
2008 2007
Thousands U.S. $ Thousands U.S. $
assets
Current assets
Cash and cash equivalents 85,930 128,234
Accounts receivable 84,109 88,023
Current maturities of investments and other assets - 4,723 Hagai Meirom Shoel Silver Yaron neudorfer
Total current assets 170,039 220,980 Treasurer Chair, Budget/Finance Committee Chief Financial Officer
Investments and other assets 63,620 31,453
Fixed assets 147,987 142,380 Date of approval of financial statements: June 1, 2009
total assets 381,646 394,813
Please refer to the companion document “2008 Financial Report” to review accompanying notes that are an integral part of these financials.
2008 financial highlights
24 Jewish Agency 2008/09 Performance Report

15. Consolidated Statements Statements of
of Operations for the Year Ended December 31, Changes in Deficit in Net Assets
Unrestricted in use Temporarily restricted
2008 2007 For operations Board designation For projects For allocations Total
Thousands U.S. $ Thousands U.S. $
Thousands U.S. $ Thousands U.S. $ Thousands U.S. $ Thousands U.S. $ Thousands U.S. $
revenues: Balance at January 1, 2007 (223,479) - 169,334 91 (54,054)
Unrestricted donations and contributions:
United Israel Appeal, Inc. 122,915 135,439
Keren hayesod – United Israel Appeal 47,129 45,539 changes during 2007:
International Fellowship 9,000 3,451
Direct donations & Spirit of Israel 662 1,303 Temporarily restricted donations and
Net assets released from restrictions: contributions received:
United Israel Appeal, Inc. 134,082 126,077 United Israel Appeal, Inc. - - 93,122 46,440 139,562
U.S. Government grant 37,508 39,827 U.S. Government grant - - 39,827 - 39,827
Keren hayesod – United Israel Appeal 54,394 43,091 Keren hayesod – United Israel Appeal - - 10,994 31,042 42,036
Direct donations & Spirit of Israel 38,003 26,100 International Fellowship - - 4,338 34,888 39,226
International Fellowship 20,515 38,720 Direct donations & Spirit of Israel - - 14,227 11,900 26,127
Other income 177,410 140,224
Total received - - 162,508 124,270 286,778
Total revenues 641,618 599,771
Released from restriction - - (149,454) (124,361) (273,815)
Cost of activities and other expenses: Net income for the year 19,439 - - - 19,439
Immigration and absorption department 120,965 114,472 Release of restricted assets depreciation expenses 3,055 - (3,055) - -
Education department 106,599 93,886
Israel department 102,517 88,622 Net change during 2007 22,494 - 9,999 (91) 32,402
Amigour social housing 24,061 23,357
Balance at December 31, 2007 (200,985) - 179,333 - (21,652)
Allocations and social programs 130,974 127,834
JAFI-wide projects and organizational activities 128,945 101,492
Support functions 34,238 32,365 changes during 2008:
Allocation to World Zionist Organization 7,300 7,800
Global management 4,330 4,256 Temporarily restricted donations and
contributions received:
659,929 594,084 United Israel Appeal, Inc. - - 59,944 65,852 125,796
U.S. Government grant - - 37,508 - 37,508
Income (deficit) from ordinary operations (18,311) 5,687 Keren hayesod – United Israel Appeal - - 21,639 32,785 54,424
Financial expenses, net (10,304) (5,315)
International Fellowship - - 2,034 17,767 19,801
Direct donations & Spirit of Israel - - 28,619 11,312 39,931
Income (deficit) from activities (28,615) 372
Total received - - 149,744 127,716 277,460
Other income (expenses):
Income from asset realization, net: Released from restriction - - (156,786) (127,716) (284,502)
Sale of Amigour apartments 44,322 43,670 Net deficit for the year (18,374) - - - (18,374)
Sale of other JAFI-owned assets 1,069 3,257 Board designation (30,800) 30,800 - - -
Increase in pension liability, net (65,950) (27,860) Release of fixed assets and
Income from Kibbutz sector agreement 30,800 - restricted assets depreciation expenses 6,174 - (6,174) - -
Other income, net 10,241 19,067 Net change during 2008 (43,000) 30,800 (13,216) - (25,416)
Net (deficit) income for the year (18,374) 19,439 Balance at December 31, 2008 (243,985) 30,800 166,117 - (47,068)
Please refer to the companion document “2008 Financial Report” to review accompanying notes that are an integral part of these financials.
2008 financial highlights
26 Jewish Agency 2008/09 Performance Report

16. With deepest
gratitude, we
recognize our valued
partners in purpose.
You make our
history-making
the Jewish Agency for Israel and you
Partnering with purpose, all over the world.
work possible.
We would like to thank each donor supporting
annual campaigns worldwide, as well as our
valued volunteer and professional partners
at United Jewish Communities and in Jewish
federations across north America, and at Keren
Hayesod-United Israel Appeal. Your enduring
commitment provides the vital support to
ensure the ongoing core work of the Jewish
Agency. Together, with our partners worldwide,
we are securing the Jewish future.
28 Jewish Agency 2008/09 Performance Report