CharityWatch's rating of Hadassah includes the financial activities of the entities included in the Hadassah, The Women's Zionist Organization of America, Inc. and Related Entities audited consolidated financial statements for the year ended December 31, 2024. All material intercompany transactions have been eliminated in the audit consolidation. Along with Hadassah, The Women's Zionist Organization of America (HWZOA), the entities included in its 2024 consolidated audit are: Hadassah Medical Relief Association,
Inc. (a New York not-for-profit corporation) (HMRA), Hadassah International, Ltd. (a Bermuda exempted
company) (HIL), The Hadassah Foundation, Inc. (a New York not-for-profit corporation)
(Hadassah Foundation), Hadassah Offices in Israel Ltd. (an Israeli not-for-profit organization) (HOI),
Fabulous Finds LLC (a Delaware limited liability company and for-profit entity) (Fabulous Finds), Hadassah
Medical Organization (an Israeli not-for-profit organization) (HMO), Hadassah International Israel Ltd. (an
Israeli not-for-profit organization) (HII), Hadassah Stiftung Deutschland (an unincorporated foundation
under German law) (Hadassah Foundation Germany), Hadassah Mexico, A.C. (a Mexican non-profit
association) (Hadassah Mexico), and Hadassah Switzerland (a Switzerland association) (HS). 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 they are not included in Hadassah's audited consolidated financial statements.
According to the Hadassah consolidated audit of December 31, 2024 (Note 1, Organization):
"...In Israel, in addition to supporting activities at HMO, HWZOA, and HMRA support a variety of projects
conducted by unconsolidated entities. Hadassah-supported Youth Aliyah villages provide housing,
education, and support to disadvantaged Israeli and immigrant youth. Young Judaea sponsors camps,
clubs, activities, and Israel programs to connect young people with Israel and the Jewish community.
Together with the Jewish National Fund, HWZOA and HMRA build parks and reservoirs, make parks
disabled-accessible, and support reforestation projects. In the United States, HWZOA members are engaged in a variety of educational, advocacy, and community
service initiatives. Engagement programs include women’s health and wellness programs for heart health
and breast cancer; book and author discussions; professional council programs; women’s empowerment
initiatives; and Jewish and Zionist education. Hadassah members help to shape public policy through
advocacy work on important issues, including U.S.-Israel relations, combating antisemitism through
education, women’s health equity, infertility, civic engagement, and issues related to the Jewish
community. With members in nearly every congressional district, Hadassah mobilizes advocates to build
relationships with their elected officials through meetings with legislative offices, letter writing and phone
call campaigns, and other outreach. HMRA is a not-for-profit corporation, incorporated in the state of New York on June 10, 1925, and is a
supporting organization of HWZOA with the same mission as HWZOA. HWZOA is the sole member of
HMRA; the Board of Directors of HMRA consists of the members of the Executive Committee of HWZOA
and the Officers of HMRA are the National Officers of HWZOA. HMRA is an organization exempt from
federal income taxes under the U.S. Internal Revenue Code Section 501(c)(3) and also qualifies as a
Type 1 supporting organization, as described in the U.S. Internal Revenue Code Section 509(a)(3). HIL is a Bermuda-exempted company limited by guaranty incorporated on August 25, 1995, which, among
other things, coordinates Hadassah’s international units, raises funds for HMO and develops exchange
programs between HMO and medical institutions around the world. The members of the board of HIL are
composed of members of the National Board of HWZOA and/or the Board of Directors of HMRA,
international representatives from HIL units, and those who are not affiliated with a HIL unit but have
special expertise. The sole corporate member is HMRA. Hadassah Foundation, founded on June 1, 1998, is a supporting organization of HWZOA and engages in
activities that support or benefit HWZOA and/or such other charitable organizations whose operations are
consistent with HWZOA’s charitable mission of supporting innovative and creative programs in Israel and
within the American Jewish community, which focus on issues of particular importance to women, their
health, education and well-being, and the health and well-being of their families. HOI is registered in Israel as a Public Benefit Company. Included among HOI’s shareholders are HWZOA,
HMRA, and Fabulous Finds. HOI’s primary objectives are to act on behalf of and in the interests of
HWZOA, to promote HWZOA and its affiliated institutions in Israel, to promote activities on behalf of
HWZOA in the areas of health, education, and welfare throughout Israel, to seek fundraising opportunities,
and to represent HWZOA to the Israeli public. HOI has been recognized under the Israeli Income Tax
Ordinance (New Version) as a “public organization” and as a “not-for-profit organization” under the Value
Added Tax Law – 1975 and as a “Public Institution” according to section 46 of the Income Tax Ordinance,
so that it can receive donations and the donors can receive tax credits.
Fabulous Finds, founded on September 29, 2005, is managed by HWZOA and was created for the purpose
of selling donated items on eBay. Fabulous Finds is currently inactive.
HMO, registered and located in Israel, is a provider inter alia of medical care, rehabilitation, and medical
research and operates medical schools in affiliation with the Hebrew University. HMO is engaged primarily
in providing medical services at two medical centers in Jerusalem – Ein Kerem and Mount Scopus. HMO
provides state-of-the-art treatment to nearly one million patients a year at its two hospital campuses, a
community health center, and outpatient clinics. HMO has been recognized under the Israeli Income Tax
Ordinance (New Version) as a “public organization,” as a “not-for-profit organization” under the Value
Added Tax Law – 1975, and as a “Public Institution” according to section 46 of the Income Tax Ordinance,
so that it can receive donations and the donors can receive tax credits. In accordance with HMO’s Articles
of Association and pursuant to section 345 of the State of Israel Companies Law, 1999 (the Companies
Law), HMO is a public benefit company. Pursuant to the Companies Law, a public benefit company
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 distribution to
its members (the Distribution Prohibition). The members of HMO include HMRA (the sole corporate
member of HMO), and HWZOA designees. HWZOA and HMRA as noted above have control over HMO
and are required to operate under the requirements of the above-mentioned Articles of Association and the
Distribution Prohibition. 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.). HII is registered in Israel as a Public Benefit Company. Included among HII’s shareholders are HWZOA,
HMRA, Fabulous Finds, and HOI. Among HII’s primary objectives are to raise donations in Israel to support
the objectives of HWZOA’s and for HMO and to assist in the promotion and development of healthcare
services in Israel. HII has been recognized under the Israeli Income Tax Ordinance (New Version) as a
“public organization” and as a “not for profit organization” under the Value Added Tax Law – 1975.
Hadassah Foundation Germany is a nonprofit organization 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 healthcare, as well as professional training by a tax-privileged or a public corporation. The
authorized representatives of HMRA (and, therefore, of Hadassah Foundation Germany) are currently the
officers of HWZOA.
Hadassah Mexico is a nonprofit association founded in 2000 in Mexico. The Associates of Hadassah
Mexico are HWZOA board members who elect the Board of Hadassah Mexico. The Board of Hadassah
Mexico includes members of the National Board of HWZOA. The purpose of Hadassah Mexico is similar to
the purpose of HIL regarding the support of HMO and also includes promotional activities and the
development of programs, lectures, etc. in Mexico and pursuant to Mexican law.
HS is a nonprofit organization in Switzerland founded in 2002 with a mission to financially support HMO,
promote the exchange of information, ideas, and personnel between physicians, nurses, and other
healthcare personnel of HMO and medical institutions in other countries, and inform the scientific and lay
public by means of publications and events about the research, healthcare, and teaching activities of HMO.
HS is a constituent unit of HIL and HWZOA and HIL have representatives on the board and membership of
HS. There were no significant assets, liabilities, or activities during 2023 or 2024..."
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According to the Hadassah consolidated audit of December 31, 2024 (Note 13, Recovery Agreement): "In February 2014, 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 in accordance with section 350
of the Companies Law 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 (the Recovery Agreement) 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, pursuant to the terms of the recovery plan, the 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 recovery plan and Recovery Agreement, HMO
undertook to transfer to the Government all the Hospital’s rights in the properties, which do not serve for the functioning of the Hospital and undertook to pledge additional assets and certain sources of income to
the Government. The Recovery Agreement is effective as of July 28, 2014. In November 2021, as a result
of the delay in legislation due to COVID-19, the parties agreed to extend the Recovery Agreement for an
additional year. The agreement expired as of December 31, 2021. In accordance with the Recovery Agreement, HMO received a long-term loan from Government of Israel
with an outstanding balance of $35,015,018 at December 31, 2023, which included accrued interest of
$7,203,248. The loan bore interest of 3.85% annually. During the years of the Recovery Agreement
(through December 31, 2020), according to the terms of the Recovery Agreement, HMO undertook to pay
interest only and beginning in January 2021, the principal will be paid in 120 monthly installments. In
accordance with the Recovery Agreement, the aggregate net value of properties of HWZOA and of the
Hospital transferred to the Government of Israel as part of the Recovery Agreement, less NIS 150 million
(approximately $40,991,000 at December 31, 2024), will be netted off the loan balance. However, the net
value of said properties has not been agreed upon by all parties. In 2017, HWZOA appealed to Court in
order to determine the valuation. As a result of the dispute regarding the value of the properties, HWZOA,
HMO, and the Government of Israel agreed in 2017 to freeze the collection of the interest on the loan from
June 2017 to June 2018. This period was extended until June 2020. On November 1, 2020, the decision to
freeze interest and principal repayments was extended until the earlier of January 31, 2024 or the date of
settlement of the dispute between HWZOA and the Government. On May 26, 2024, a settlement agreement was signed between the Government of Israel, HMRA, HWZOA
and HMO according to which the disputes regarding the properties described above were settled
(hereinafter the “settlement agreement”) and an amendment to the Recovery Agreement between the
Government of Israel, HMRA, HWZOA, and HMO (hereinafter the “amendment to the Recovery
Agreement”) was also signed. In the settlement agreement, it was agreed that: (i)
The Government of Israel will forgive the loan granted to HMO in the amount of NIS 125.9 million
($35,015,018), including interest. (ii) All guarantees and liens pledged by the Hospital will be removed. (iii) The Government of Israel will transfer a NIS 60 million ($16,421,709 at May 26, 2024) grant for
designated development projects fund out of which 50% was transferred to HMO in June 2024 and the
remaining 50% is due during 2025. (iv) The Supreme court agreed to HWZOA’s and HMRA’s request to cancel the appeal in June 2024
without a demand for expense reimbursement. (v) In the amendment to the Recovery Agreement it was agreed that the four assets that were transferred
from HMO to the Government of Israel as part of the Recovery Agreement will be returned. In 2024, HMO recognized income of NIS 130 million (approximately $35,262,000) in respect of the
Government of Israel loan which was forgiven, and four assets were transferred as mentioned above... ...Upon signing of the settlement agreement, a second agreement came into effect between HWZOA, HMRA,
HMO, and the Israel Land Authority according to which HWZOA and HMO will transfer land in the Ein
Karem and Mount Scopus campuses for the purpose of development and advancement of planning and
commercializing residential units and commercial areas. The Israel Land Authority will market the land
under public tenders. HWZOA and HMO’s share in the consideration from marketing the land will be
managed in designated bank accounts and will be used for the future development of HMO, as approved
by HWZOA and HMRA and will not be used to finance operating expenses. Nevertheless, there are
currently significant objections to the development of the noted commercialization plans and they might not
materialize in the near future or at all."
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According to the Hadassah consolidated audit of December 31, 2024 (Note 11(c), Employees' Benefits Liabilities, HMO Severance): "HMO employee’s severance pay is covered by current deposits to the Hadassah Employee Pension
Fund. Employees who resign after attaining seniority of at least five years are entitled to, in addition to
their pension rights, compensation at the rate of 2.33% of their last salary multiplied by the years of
employment. Employees insured with HEPF who resign before reaching retirement age and who
liquidate their pension rights are entitled to full severance pay from the Hospital, part of which is to be
reimbursed by HEPF. The accrual for additional severance pay is approximately $94,281,000 and $95,953,000 at
December 31, 2024 and 2023, respectively..."
According to the Hadassah, The Women's Zionist Org. of America 2024 tax filing, Hadassah 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): "The following individuals received a severance payment during 2024: Naomi Leah Adler - $276,923 Judith Alperin - $79,627..." [Adler and Alperin had total reported compensation of $378,788 and $417,942 during 2024, respectively (IRS Form 990, Schedule J, Part II).]
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