CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.
Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.
|CharityWatch's rating of Hadassah includes the financial activities of the organizations included in its audited consolidated financial statements for the fiscal year ended December 31, 2016. Hadassah's official name is "Hadassah, The Women's Zionist Organization of America."|
Along with Hadassah, The Women's Zionist Organization of America (HWZOA), the related entities included in its 2016 consolidated audit are: (1) Hadassah Medical Relief Association, Inc. (HMRA); (2) Hadassah International, Ltd. (a Bermuda Corporation) (HIL); (3) The Hadassah Foundation, Inc.; (4) The Hadassah Office in Israel (an Israeli not-for-profit entity); (5) Fabulous Finds LLC (Fabulous Finds) (a for-profit entity); (6) Hadassah Medical Organization (HMO); (7) Hadassah Stiftung Deutschland (Hadassah Foundation Germany); and (8) Hadassah Mexico, A.C.
CharityWatch's rating of Hadassah does not include the financial activities of the Hadassah chapters or the international affiliates (autonomous geographical units) other than the entities cited above, as these are not included in Hadassah's audited consolidated financial statements.
According to Note 1 of the Hadassah 2016 consolidated audit:
"In Israel, in addition to supporting activities at HMO, HWZOA, and HMRA support a variety of projects conducted by unconsolidated entities. Hadassah Academic College provides academic degree programs. Hadassah-supported Youth Aliyah villages provide housing, education, and support to disadvantaged Israeli and immigrant youth. Together with the Jewish National Fund, HWZOA and HMRA build parks and reservoirs, make parks disabled-accessible, plants trees, and supports reforestation projects."
"... HMO is a public benefit company. ...[It] operates only for public purposes, its income and property are applied solely toward the objects of the public benefit company, and it is prohibited from making the distribution of profits or any other distributions to its members... HMO owns and controls four wholly owned subsidiaries: Hadasit Medical Research and Development Company, Ltd, S.R.Y (Medical Services) Ltd., Hadassah Medical Ltd., and the Research Fund of the Hadassah Medical Organization Amuta (R.A.)."
"HIL is a Bermuda exempted company limited by guaranty incorporated in August 1995, which coordinates Hadassah's international units whose purposes are to raise funds for HMO and develop exchange programs between HMO and medical institutions around the world..."
"HMRA is a not-for-profit corporation incorporated in the State of New York on June 10, 1925 whose mission is identical to HWZOA..."
"Hadassah Foundation, founded in 1998, grants funds to charitable organizations in the United States and in Israel that have a mission to serve the needs of women and girls in the United States and Israel for the purpose of funding seed projects related to the respective organization's mission."
"Hadassah Foundation Germany was founded by HMRA in 2016 under German law whose purpose is to raise funds and direct these funds to promote science and research, medical, and public health care as well as professional training by a tax-privileged or a public corporation..."
"Hadassah Mexico, A.C. was founded in 1999 in Mexico. ... The purpose of Hadassah Mexico, A.C. is similar to the purpose of HIL regarding HMO and includes promotional activities and the development of programs, lectures, etc. in Mexico and pursuant to Mexican law."
"Fabulous Finds, founded in 2006, is managed by HWZOA, and was created for the purpose of selling donated items on eBay. Fabulous Finds is currently inactive."
Whenever practicable, CharityWatch obtains consolidated or combined audited financial statements that include all of the entities of a charity. Such an audit eliminates transactions among related entities and allows us to determine how efficiently an organization is operating on the whole.
For more information on this topic, please see our section on Treatment of Related Organizations, which can be found in the "Criteria & Methodology" section under the "About Us" navigation header.
|According to the Hadassah, The Women's Zionist Organization of America (HWZOA) & Related Entities consolidated audit of December 31, 2016 (Note 1, Organization):|
"On July 1, 2012, HWZOA transferred the programs and activities (except for the endowment funds and earnings accumulated but not yet appropriated) for Jewish youth known as "Young Judaea," Hadassah's Zionist youth movement, which include, without limitation, Young Judaea activities and programs in the United States and Israel, Young Judaea Sprout Lake Camp, Inc., Young Judaea Inc. (d/b/a/ Camp Tel Yehudah), Hadassah Youth Services Amuta, and Hadassah WUJS Arad, Ltd. (collectively, the Young Judaea Programs) to Young Judaea Global, Inc. (YJG), an independent and separate not-for-profit corporation. In 2016, the Supreme Court of the State of New York, County of New York approved the transfer of endowment funds and earnings accumulated but not yet appropriated. Accordingly, the endowment corpus and accumulated earnings of $4,664,968 and $615,816, respectively, were transferred to YJG in 2016..."
|According to the Hadassah, The Women's Zionist Organization of America & Related Entities consolidated audit of December 31, 2016 (Note 17, Recovery Agreement):|
"At December 31, 2014, HMO's [Hadassah Medical Organization's] unrestricted accumulated deficit, excluding net investment in property, plant, and equipment, approximated $218 million. In February 2014, and as a result of financial difficulties caused by continuing operational and cash deficits, HMO submitted a request to the District Court in Jerusalem (the Court) for a Stay of Proceedings status. On February 11, 2014, the Court approved the Stay of Proceedings status...for a 90-day period and required the trustees and management to conduct intense discussions with the Unions, Government and Hadassah in order to reach a recovery plan.
"On May 22, 2014, the Court approved a recovery plan for the period of seven years beginning January 1, 2014 through December 31, 2020, and canceled the Stay of Proceedings status. On June 24, 2014, a Recovery Agreement was signed by HMO, Hadassah, and the Government of Israel, which includes various operational, financial and corporate governance matters. In accordance with the agreement, HMO will pledge its assets and certain sources of income to the Government. The agreement is effective as of July 28, 2014. Net income from recovery agreement in 2016 and 2015 includes grants of $28,782,038 and $33,870,404, respectively, from the Government of Israel...
"In accordance with the Recovery Agreement, HMO received a long-term loan from [the] Government of Israel with an outstanding balance of $25,614,098 and $25,662,082 at December 31, 2016 and 2015, respectively. The loan bears interest of 3.85% annually. ... At December 31, 2016 and 2015, advances from the Government of Israel represent $16,366,524 and $15,720,848, respectively, received in advance relating to repayment of SHARAP [Hadassah's Private Medicine Service] funds."
|According to the Hadassah, The Women's Zionist Organization of America & Related Entities consolidated audit of December 31, 2016 (Note 16(b), Commitments and Contingencies, Construction Projects):|
"In January 2009, the HMRA [Hadassah Medical Relief Association] Board of Directors approved the construction of a new inpatient hospital at a total cost of approximately $300,000,000, which is expected to be fully completed in 2017. The new building will house approximately 480 beds, an intensive care unit, and departmental step-down units. At December 31, 2016, construction commitments were approximately $14,000,000."