American Jewish Joint Distribution Committee

CharityWatch's rating of The American Jewish Joint Distribution Committee (JDC) includes the financial activities of the entities included in the JDC audited consolidated financial statements for the fiscal year ended December 31, 2021.

According to the JDC 2021 consolidated audit (Note 2 re: Consolidated Financial Statements), the consolidated entities are "related through common board control and economic interest" and are listed below. All intercompany transactions and balances have been eliminated in the audit consolidation.

– The American Jewish Joint Distribution Committee, Inc.
– Joint (JDC) – Israel (CC) (Joint Israel)
– JDC International Ltd.
– Jack G. Buncher Charitable Fund for the American Jewish Joint Distribution Committee
– Swergold Family Foundation for Children in Crises
– Thalheimer Family–JDC Support Foundation, Inc.
– AJJDC Real Estate Company Limited
– Taub Center for Social Policy Studies in Israel
– Maurice and Vivienne Wohl Charitable Foundation

According to The American Jewish Joint Distribution Committee (JDC) consolidated audit of December 31, 2021 (Note 2 re: Subsequent Events):

"JDC evaluated its December 31, 2021 consolidated financial statements for subsequent events through July 20, 2022, the date the [audited] consolidated financial statements were available to be issued.

"On February 24, 2022, the Russian Federation invaded Ukraine ('the Event'), which has a significant impact on JDC's operations in the Former Soviet Union region. As of the date the [audited] consolidated financial statements are available to be issued, the state of emergency in the region continues to evolve as military activities progress. In addition to the impact of these events on JDC's branches and controlled entities operating in Russia, Ukraine and Belarus, the state of emergency is increasingly affecting ongoing activities in all other Former Soviet Union countries. In addition to providing its core services in the region, JDC is responding to the new needs of its served populations by providing evacuation services, refugee shelters and, [sic] assistance with food and medicines.

"In response to the invasion, the United Nations, the United States of America, the European Union, as well as other countries, imposed a series of restrictive measures ('sanctions') against the governments of Russia and Belarus and against certain companies and individuals. As of the date the [audited] consolidated financial statements are available to be issued, approximately $10.4 million is deposited in a Russian bank subject to U.S. sanctions. Management is in the process of requesting the consent of the Office of Foreign Assets Control to access these funds, to be used for JDC's humanitarian aid programs in the region.

"Additionally, a portion of JDC's buildings, with a net book value of $17.7 million as of December 31, 2021, is located in Russia and Ukraine. Management is currently assessing the potential impact of the Event on the net book value of these assets. As of the date the [audited] consolidated financial statements are available to be issued, no properties have been damaged.

"Management is continuing to closely monitor the situation in the affected region and is likewise continuing to evaluate the full impact of the Event on the results of JDC's operations."

According to The American Jewish Joint Distribution Committee (JDC) consolidated audit of December 31, 2021 (Note 17, Transactions with Related Parties, Supported Organizations in the Former Soviet Union ('FSU')):

"JDC carries out its programs through various organizations in the FSU. JDC made distributions of $143,788,953 and $138,905,914 during 2021 and 2020, respectively, for various program services to these organizations. These expenditures are reflected in the [audited] consolidated statement of functional expenses."

[Note: The $143,788,953 in distributions JDC made in 2021 to carry out its programs through various organizations in the Former Soviet Union, as referenced above, comprised approximately 46% of JDC's reported total program services spending in 2021.]

According to The American Jewish Joint Distribution Committee (JDC) consolidated audit of December 31, 2021 (Note 17, Transactions with Related Parties, Projects for the Public Benefit in Israel):

"JDC through Joint Israel works in partnership with the Government of Israel and other third parties to support projects in Israel for the public benefit.

ALFANAR – A company for public benefit...dedicated to the development of employment opportunities and professionalism in the Arab Sector.

HOTAM – Also known as Teach First Israel...promotes equal opportunity in Israel by developing and training a high-quality community of educators, outstanding teachers, and leaders who work together to enable every child to choose their own future, regardless of their parents' income, level of education, or social standing.

"JDC incurred expenditures on behalf of ALFANAR of $127,070 and $92,336 during 2021 and 2020, respectively. JDC incurred expenditures on behalf of HOTAM of $4,486,822 and $8,557,232 during 2021 and 2020, respectively."

According to The American Jewish Joint Distribution Committee (JDC) consolidated audit of December 31, 2021 (Note 2 re: Investments):

"Investments are recorded at fair value. JDC invests in various investment securities. Investment securities, in general, are exposed to various risks such as interest rate, credit, and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term, based on the markets' fluctuations, and that such changes could materially affect the amounts reported in JDC's [audited] consolidated financial statements."

According to The American Jewish Joint Distribution Committee (AJJDC) 2021 tax filing, JDC reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, line 4a):

"Sarah Eisenman received $234,090 from AJJDC at the time of her separation from the Organization. The total severance amount was paid in 2021."

[AJJDC reports Sarah Eisenman as Executive Director of Entwine, with total compensation in 2021 of $358,697 (IRS Form 990, Schedule J, Part II).]