Jewish agencies forced to downsize

Combined Jewish Philanthropies, an umbrella organization that helps finance several hundred local Jewish groups, gave preliminary approval yesterday to a 15 percent cut in the amount it will distribute next year. The organization had already cut its budget by 15 percent, laid off about 10 percent of its workforce, and imposed a 7 percent pay cut on senior managers and a one-week furlough for everyone making over $45,000.

The Reform Jewish movement plans to close its regional office in Needham next week. The Bureau of Jewish Education, in Newton, is debating whether to close after Combined Jewish Philanthropies cut 80 percent of its funding. Multiple organizations, from the Anti-Defamation League to Hebrew College to Facing History and Ourselves, have laid off small numbers of workers, and many others have trimmed salaries, benefits, or programs.

"The American Jewish community has probably lost 30 percent of its wealth, and we have no idea how to cut the costs of the Jewish community by 30 percent," said Jonathan Sarna, a professor of American Jewish history at Brandeis University.

Sarna said that across the nation, there are unusual signs of the impact: In addition to widespread cutbacks, a few Jewish organizations are merging with non-Jewish organizations, and some Jewish community centers are closing.

"It's a very tough time, and we're at the stage now where everybody is defending their turf," he said.

Opinions differ about whether the Jewish community, which has over the last decades established and funded an extraordinarily diverse network of schools, synagogues, and community organizations, is going through a major shakeout or a temporary belt-tightening.

The organizations are facing multiple overlapping problems: their own endowments, as well as those of charitable foundations, have lost value because of the collapse of the stock market; individual contributors are being less charitable because of job losses, portfolio declines, or just general economic insecurity; government funding for Jewish social service providers is being cut; and Jewish philanthropists appear to have been disproportionately affected by the Madoff Ponzi scheme.

Many local organizations were spared direct impact from Madoff because they pool their funds and invest them collectively through Combined Jewish Philanthropies, which did not invest with Madoff. But some have suffered indirectly because their donors were hurt by the fraud.

"There was a bubble of wealth, and the kind of philanthropy that was pouring into Jewish institutions was great," said Rabbi Daniel L. Lehmann, president of Hebrew College in Newton. "But now you have a recalibration which is going to have a dramatic impact on the landscape of the Jewish community, in terms of which institutions will survive and reinvent themselves and which won't."

Even before the stock market tanked, Lehmann's own institution had been in serious financial trouble and had layoffs and cutbacks. "There's definitely a contraction going on in the Jewish community that's very, very worrisome."

Combined Jewish Philanthropies, the most important source of funding for many Jewish organizations in Eastern Massachusetts, is not imposing an across-the-board cut on its beneficiaries. Rather, it is trying to protect its top priorities: aid for the needy and outreach to the young. The organization is protecting or expanding financial aid to Jewish day schools and to social service and job placement programs.

"The economic challenges have had an impact on contributions, which are down, and it's had an impact on our endowment, which actually did pretty well, but still suffered a loss, which means we're going to have less money to give away," said president Barry Shrage. "We are really focused on providing support for people who are poor, people who are needy, people who have lost their jobs, but we're also focused on programs that reach out to the community, engage the next generation, and insure that our community is going to have a great future."

The impact on Jewish schools and synagogues appears to be somewhat less dire, although the schools are grappling with increased demand for financial aid from families in which a parent has lost a job.

Jewish social service organizations have been hard hit because of the state's budget crisis, but have also benefited because Combined Jewish Philanthropies and some donors are prioritizing aid.

"We ended up getting support from some foundations that we've not gotten support from before," said Jerry Rubin, president of Jewish Vocational Service.

Seymour J. Friedland, chief executive of Jewish Family & Children's Service, said that while unsolicited gifts have increased, the organization has been indirectly hit by the Madoff scandal because several foundations that were contributors were forced to stop making new grants.

Jewish Vocational Services has laid off eight people and ended two programs. Jewish Family and Children's Services has laid off a small number of people and has reduced or eliminated a few programs. Jewish Family Service of Metrowest has cut salaries, but spared its lowest paid employees.

The Bureau of Jewish Education of Greater Boston, which has provided assistance to the area's 14 day schools, 32 preschools, and 70 synagogue-based afterschool programs, is trying to figure out whether it can survive without funding from Combined Jewish Philanthropies or whether it will simply assist in transferring its most successful programs to other institutions and then close its doors.

"We're going to be one of the sacrifices," said executive director Daniel J. Margolis.

Another hard hit organization is the Jewish Community Relations Council, which is entirely funded by Combined Jewish Philanthropies and is losing 20 percent of its budget. The council's executive director, Nancy K. Kaufman, said her organization will move forward "with enormous creativity."

Michael Paulson can be reached at mpaulson@globe.com.