The Board of Deputies faces a loss of £138,000 this year, seven times more than it had expected, the JC has learnt.
It has frozen staff recruitment and is imposing further budgetary constraints. It has also set up a special fundraising taskforce.
The latest blow to the charitable organisation’s finances comes after it reported a £334,000 loss last year.
Internal documents prepared for members of the Board revealed the projected loss for the current financial year was originally £21,000 before it was revised to more than £200,000.
Additional savings and a £60,000 grant from the World Jewish Congress (WJC) reduced the overall deficit to £138,000, the figure that was shared with Deputies.
Last year, however, the WJC donated £116,000, with the reduction adding to the financial pressure.
The Board was also boosted by almost £70,000 in communal contributions in the last month — £30,000 more than it had originally budgeted for — but was warned this income was “beginning to decline”.
It comes after a deputy resigned, accusing the body and its president Marie van der Zyl of “political grandstanding” about the government’s immigration bill without seeking the backing of members of the Board.
The Board has set up a special taskforce to attempt to raise money to boost declining income from shul members.
In June, Phil Rosenberg, the Board’s former public affairs director, warned other deputies that recent community contributions — more than half of the Board’s annual income — had fallen, with a “particularly concerning” drop in the first half of this year.
He added: “Let’s ensure the [Board] has the funds it needs to continue to be the voice of the UK Jewish community.”
The organisation was also hit by an unexpected loss at the annual Yom Hashoah commemoration in April.
The treasurer’s report, covering the first six months of this year and distributed to deputies last week, said it was making “major efforts” to reduce overheads during the second half of the year.
It added: “Steps have been taken to either reduce or eliminate all unnecessary expenditure and all new staff recruitment has been frozen.”
Marie van der Zyl
Marie van der Zyl (Photo: Handout)
A senior Board member said the body was making changes to its budget to “live within its means”.
“While it is obviously a challenge — £200,000 is a substantial amount — it’s not in any way panic stations,” he added.
“A couple of things have gone differently, salaries have risen for the cost of living crisis. Income generation will be looked at. It’s tough out there for all charities.”
Treasurer Michael Ziff said: “With sensible management and harbouring of funds, and without doing anything drastic, I believe we’ll get the organisation back to break even.”
Ziff had previously explained that last year’s losses had been exacerbated “as a result of not accepting a donation from the EJC [European Jewish Congress] due to their refusal to adequately deal with a complaint and from being less successful than hoped in our fundraising efforts.”
The overall loss was however offset by a £587,000 legacy, according to a report of the finance and organisation committee earlier this year.
According to recent accounts, the Board’s overall spending by its charitable arm, which covers most of its work, was £1.25 million a year. A limited company responsible for non-charitable activities spends over £100,000 a year.
The Board’s primary source of income is the £30 from synagogue members each year, which represented 65 per cent of its income in 2021.
Organisations which send deputies to the Board pay a representation fee of £495 for synagogues and £595 for other groups. Board activities are also backed by investments worth nearly £4.5 million in 2021.
The Board had predicted a £21,000 deficit for this year, but other factors have “come to light” including it having to leave rent-free offices.
Figures shown to deputies on Sunday showed communal contributions were slightly above budget. Ziff said: “There are nonetheless signs… from the major payers that this source of income is beginning to decline.” g
