Because of the recent economic recession, the Federation of Jewish Philanthropies of New York will sustain a deficit of over $2,000,000 for its 1957-58 operations while its 116 affiliated agencies will experience the heaviest demand for their services, Gustave L. Levy, Federation president, declared today in the organization’s 40th annual report.
Mr. Levy placed the cause of the impending record deficit on three factors: a reduction in campaign contributions; an increased allotment to agencies to meet increasing community needs, and a reduction in the cash collections of outstanding pledges. Mr. Levy said that in its 1957-58 drive Federation raised $16,638,400 in pledges and contributions. He pinpointed the downturn in business “on a broad front” as the major reason for Federation’s financial difficulties. He added that “we are not alone in this experience. It is the experience of philanthropic organizations generally throughout the country.”
As a result of the economic difficulties, Mr. Levy said he foresaw an increase in the number of people who would seek the services of Federation’s institutions and a decrease in patient and client fees. “In any period of economic crisis it is inevitable that there will be an increased number of people seeking help,” Mr. Levy said. “Our employment services already feel the pressure for greater service. Our family services, similarly, for we know that financial troubles have a way of breeding family troubles.”
FEARS REDUCED WAGES WILL AFFECT INCOME OF FEDERATION AGENCIES
Mr. Levy also emphasized that reduced wages will result in smaller incomes for Federation agencies for the services they render. “One of the things we have been most proud of has been our agency fee schedules based on ability to pay, “he said. “This has meant that in recent years our agencies have had a good client income. And it means that the other side of the coin faces us today.”
Government and voluntary agencies will have to work together, Mr. Levy emphasized, to devise means so that voluntary agencies would not be jeopardized in future period of recession or depression, Pointing to the fact that Federation institutions serve 700,000 persons of all races and faiths, the Federation president said that the Federation-sponsored network of agencies “by their very existence have relieved Government of an enormous job and an enormous expense.”
Mr. Levy asserted that the financial problems of Federation affect an organization that renders more than $60,000,000 worth of services to the community. He indicated that last year Federation’s institutions spent $43,052,170 for hospital and medical care; $5,853,953 for child care; $3, 382, 520 for care of the aged; $2,637,983 for family welfare; $3,611,153 for community centers; $963,077 for camps; $846,836 for religious education and $299,430 for subvention agency services, “reaching an over-all total of $60,647,122.”
In concluding his report Mr. Levy hinted at the problems Federation will face in initiating its 1958-59 campaign. “Federation and our institutions,” the Federation president said, “may have to fight just to hold the line on services.” He observed that in his estimation, “holding the line or retrogression is emotionally disturbing.” However, he expressed the “utmost confidence that in the ensuing years Federation will move forward to new horizons in medical and social welfare services as they have throughout the 40 years in which they have served our Jewish community.”
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
