New Method of Allocating Funds for Work in Israel Approved by U.i.a.

Implementation of the new method of allocating American Jewish philanthropic funds for the work of the Jewish Agency in Israel was voted this week-end at a meeting of the board of directors of the United Israel Appeal, it was announced at a press conference here by Dr, Dewey D. Stone, national chairman of the UIA and Dr. Nahum Goldmann, chairman of the Jewish Agency in Jerusalem.

The two Zionist leaders also outlined the details of the reorganization under which the Jewish Agency for Israel in Jerusalem, and the Jewish Agency for Israel,Inc.in New York become separate bodies.Dr.Goldmann stressed that the Jewish Agency for Israel, Inc–has entered into an agreement with the Jewish Agency for Israel in Jerusalem, under which “the latter will be the sole agent for the implementation of the projects supported by the American corporation.”

“I am happy to know that the American corporation will carry the name Jewish Agency for Israel, Inc.” Dr. Goldmann stated. “The name Jewish Agency, which dates back to a clause in the British Mandate over Palestine as formulated in 1921, has over the past three decades become a synonym for pioneering for the saving of lives, and the upbuilding of a flourishing community out of the swamps and deserts of the Jewish homeland. It is a name which has spelled ‘hope’ in the DP camps of Europe and pride in our Jewish heritage among Jewish communities around the globe.”

Dr.Goldmann recalled that once before, in 1929,the Agency had sought to broaden its base by inviting the participation of the so-called “non-Zionists,” These efforts, however, had been premature and were doomed to failure.”I believe that this new attempt to broaden the base of active participation in our task which is reflected in the composition of the new board of the Jewish Agency for Israel, Inc.,will be a blessing for our work and for the American Jewish community for many years to come,” he stated.

DEWEY STONE NAMED CHAIRMAN OF JEWISH AGENCY IN U.S.

The officers of the new board of the Jewish Agency for Israel, Inc. were announced at the press conference. They are: Dewey D. Stone, chairman; Mrs, Rose L. Halprin and Joseph Meyerhoff, vice-chairmen; Max M. Fisher and Abraham Goodman, treasurers; and Louis Segal, secretary.

The executive committee consists of Morris W, Berinstein, Max M. Fisher, Abraham Goodman, Mrs, Rose L. Halprin, Philip M. Klutznick, Joseph Meyerhof. Dr.Emanual Neumann, Louis Segal and Dewey D. Stone.The names of the 21 members of the new board of directors were as announced last week.

It was explained that each year the Jewish Agency for Israel,Jerusalem,will submit to the board of directors of the Jewish Agency for Israel, Inc. a budget of financial requirements and planned activities for the coming year. From this budget the board of directors of the Jewish Agency for Israel, Inc. will each select the particular activities and programs of immigration, absorption, resettlement, education and other philanthropic activities it wishes to support. In this way all funds allocated by the Jewish Agency for Israel, Inc. will be clearly designated for specific philanthropic activities carried out by the Jewish Agency for Israel, Jerusalem.

The board of directors of the Jewish Agency for Israel, Inc., will appoint an American to represent them in Israel.He will keep in close contact with all projects approved in the budget and will be responsible to the directors to ascertain that all funds are spent in accordance with the agreement between the Jewish Agency for Israel in Jerusalem.

ALLOCATIONS WILL BE DETERMINED THROUGH LINE-BY-LINE BUDGETING

In anticipation of the new agreement, the Jewish Agency for Israel has transferred Zionist education and cultural activities in the United States to the American Zionist Council, the coordinating agency of all Zionist groups in the United States. Allocation; to the American Zionist Council will be terminated as of March 31,1961.

Also, within the framework of the new agreement, it has been decided to terminate allocations to the constructive enterprises funds operated by Zionist parties in Israel as of December 31,1960.There are indications that, with the cessation of these allocations, the American Zionist Council and the Zionist parties affected by this decision will either engage in independent fund-raising campaigns or apply for allocations to the local Jewish federations and welfare funds in the United States.

Dr. Stone indicated that allocations made by the Jewish Agency for Israel, Inc. , would be determined by a process of line-by-line budgeting similar to that used in Jewish communities for local programs. Commenting on the announcement that allocation to the Constructive Philanthropic Funds of the Zionist parties in Israel will be discontinued as of December 31, 1960,he said that “those who have criticized these allocations fail to understand conditions in Israel as they have developed over the past four decades.”

“The Zionist parties which have received allocations from the Jewish Agency for constructive work in Israel are more than political parties in the American sense of the word,” Dr. Stone explained.”They represent a philosophy, a way of life. By establishing

housing projects and settlements into which new immigrants can be integrated, these constructive enterprises help the newcomers to be resettled among neighbors who share the same values and bring up their children in the same traditions.

U.S. TREASURY DEPARTMENT ASSURES U.J.A. ON TAX DEDUCTIONS

“There can be no doubt that the activities of these funds have been of a purely philanthropic nature and at no time conflicted with, the tax exempt status of the United Jewish Appeal.As late as February of this year, the UJA received affirmation from the U.S.Treasury Internal Revenue Service that contributions to the United Jewish Appeal continue to be tax deductible as they have been without interruption since 1946.

“Let it be understood that the present action–discontinuing these allocations–has not been taken because of any pressure or criticism from any special group or individuals outside of the United Jewish Appeal, ” Dr.Stone stressed.”When over a year ago the decision was taken to broaden the participation of American Jewish leadership in the disposition of United Jewish Appeal funds spent in Israel, it was agreed by top United Jewish Appeal leaders and Zionist leaders that these allocations and other expenditures for Zionist cultural activities would no longer come out of United Jewish Appeal funds,”