CharityWatch REPORT
Issued December 2016

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 Jewish National Fund (JNF) is based on its audited consolidated financial statements for the fiscal year ended September 30, 2015. Included in JNF's consolidated financial statements, and therefore in CharityWatch's rating, are JNF (including the accounts of the national headquarters and all of the zone offices), as well as Beyachad Fund (R.A.) and Alexander Muss Institute for Israel Education, Inc. (AMIIE).

Beyachad Fund (R.A.) is an Israeli not-for-profit organization "that is organized to provide support to and develop areas in Israel." AMIIE d/b/a Alexander Muss High School in Israel, or AMHSI, is a Florida-based 501(c)(3) public charity that "provides an Israel educational experience to students." (See Notes 1 & 2 to the JNF Consolidated Audit of Sept. 30, 2015.)
According to the Jewish National Fund (JNF) consolidated audit of September 30, 2015 (Note 5, Contributions Receivable, Net):

"During the year ended September 30, 2015, JNF received approximately $134 million from the Dora Boruchin Trust which is included as part of bequest revenue [in fiscal 2015]..."

*NOTE: The $134 million bequest received by JNF during fiscal 2015 (noted above) is almost two-times JNF's total expenses for the year and represents over 40% of its total net assets at year-end, according to JNF's audited Consolidated Statement of Financial Position as of 9/30/2015. Therefore, in consideration that this relatively large-sized bequest was received during fiscal 2015 and that it would be unreasonable to expect JNF to spend significant amounts over a short-term period, CharityWatch has not downgraded JNF's "A" grade for having large asset reserves (i.e., "High Assets") at 9/30/2015.

CharityWatch will reassess the status of JNF's asset reserves when performing our future ratings of JNF.
According to the Jewish National Fund (JNF) tax filing for the fiscal year ended September 30, 2015, JNF reports for Loans to and/or From Interested Persons (IRS Form 990, Schedule L, Parts II & V):

"Jewish National Fund extended a loan to CEO and Executive Vice President, Russell Robinson, and to the CFO, Mitchel Rozenzweig [sic] to facilitate the purchase of real estate. The loans are memorialized with loan documents that are payable monthly."

The reported original principal amount for the above-described loans is $525,000 and $185,000, respectively, with the same amount for the balance due at 9/30/15. It is also reported that there is a written agreement for each loan, and the loans were approved "by board or committee."
According to the Jewish National Fund (JNF) consolidated audit of September 30, 2015 (Note 6, Fixed Assets, Net):

"During fiscal 2015, JNF entered into an agreement to sell a parcel of vacant property located in Fontana, California...In January 2016, JNF closed on the sale which will result in a gain in fiscal 2016 of approximately $9.7 million."

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