Needs and Responses

JCCs

Needs

In late July, a Jewish Federations of North America report noted that “the prolonged shutdown resulting from the COVID-19 pandemic has delivered a particularly tough blow to JCCs given the combination of an immediate drop in program-generated revenue and generally low cash reserves. As a result, substantial layoffs, furloughs and reduced hours and compensation have affected nearly half of all year-round staff.”

The report continued:

As the summer season got underway, the majority of JCCs resumed at least some portion of their operations, subject to prevailing local public health guidelines. Three-quarters of JCCs expect to be operating on a modified basis by the end of July, though program participation is averaging less than 40% of pre-shutdown levels. All 25 JCC Association overnight camps have canceled their 2020 season as have some 16% of JCC day camps. Early childhood education, day camps (or camp-style childcare) and fitness, all of which typically provide the largest contributions to revenue, are the areas of immediate focus for most JCCs. Though resuming modest operations has brought some relief, uncertainty remains the overriding concern both for the remainder of the summer and beyond. JCCs’ operating revenues are expected to contract by some hundreds of millions of dollars in the coming year, and they will be forced to make hard choices about programs, staffing and strategy. At the local level, there are opportunities for JCCs and other Jewish organizations and institutions to collaborate and partner around shared goals and priorities so that efficiencies, particularly in the use of communal facilities and program staff, can be realized.

Many are struggling to meet payroll, while others have laid off large numbers of staff. A Philadelphia-area JCC featured in a recent JTA article has laid off all but two of its 178 employees, and Jewish Insider reported on April 13 that more than 700 employees at four San Francisco-area JCCs have been temporarily laid off.

Many expect paying customers to demand refunds for membership services not provided during the closure.

Restarting operations after closures will also be expensive: JCC Association has done a further analysis about the costs associated with restarting operations after closures, projecting a combined net financial need equal to 22% of pre- shutdown operating expenses. This translates to a system-wide cost of about $24M/month. These figures are based on the expectation that the largest non-governmental JCC programs will quickly re-start: fitness, aquatics, early childhood, after school programs and day camp, as well as the resumption of membership income.

As a result of the larger economic downturn, it is unclear how many paying JCC customers will return after facilities re-open, and it’s expected that many who do will require financial aid: JFNA reports that “JCC Association anticipates significantly reduced revenues at the outset of between 50-70% based on a substantial increase in need-based scholarship support. Expenses will be scaled to the greatest degree possible relative to given operating and regulatory constraints. These numbers are likely to be representative of the average JCC’s reality for a period of six months after the resumption of operations. The estimated shortfall can be expected to be reduced by as much as a third in each of the ensuring financial quarters. The estimated total need for the first full fiscal year is therefore $216 million. The analysis above assumes that there will be a day camp season in 2020. A full camp season will generate $30 million in net revenues. Should the camp season not happen, or should it happen on a shortened or reduced basis, then the estimated financial impact would be increased accordingly. Affiliated overnight camps are also accounted for in the analysis above. Should the overnight camping season be lost, there will be additional need for start-up capital ahead of the summer of 2021.”

Responses

According to a late July report from JNFA, JCCs “successfully leveraged resources through the CARES Act and its PPP loan program; 140 JCCs received loans totaling more than $146M, and the large majority deployed them to renew or sustain employees. Determined to maximize forgivability, most JCCs committed to use the loans over an initial eight-week period, which, in most cases, has now drawn to a close. In addition, JCCs are receiving at least $12M in loans through the JCRIF process” (see below for more on JCRIF).

UJA-Federation of New York has allocated nearly $10 million, in a combination of interest-free loans to grants, to help sustain the 22 JCCs across the New York area.

On April 20, the Jewish Federations of North America (JFNA) launched the more than $80 million Jewish Community Response and Impact Fund (JCRIF), supported by a seven foundations, including the Aviv Foundation, the Charles and Lynn Schusterman Family Foundation, the Jack, Joseph and Morton Mandel Foundation, the Jim Joseph Foundation, Maimonides Fund, the Paul E. Singer Foundation, and the Wilf Family Foundation, which will operate in coordination with the JFNA. The invite-only program ia divided in two, with a loan program based at the Nonprofit Finance Fund, providing payroll and basic operational assistance for non-profits in the coming months.

In July, JCRIF announced it had made $10 million in grants to more than 20 Jewish organizations, as well as $20 million in no-interest loans, with $20 million more in loans under consideration. More details about JCRIF, including a JFN webinar, here.

According to JTA, the Kaiserman JCC in the Philadelphia area has opened up a “sustainability fund” to which members can donate that would prioritize staff health insurance — a monthly cost of $20,000 — as well as disability and life insurance, and liability insurance for the building. Six of the approximately 130 preschool families have donated a portion of their April tuition to the sustainability fund, which currently has a total of about $5,400.

Resources

JCC Staff, Funding and Facility Status Survey Highlights

Description - Report

Source - JCCA
August 2020

Professional Talent in the Jewish Nonprofit Sector and Covid-19

Date and time - Thursday, October 1
12-1 pm ET (7-8 pm Israel)

Source - JFN webinar

Amid Layoffs and Funder Bailouts, the Jewish Nonprofit World Is Fearing 2021

Description - News Article

Source - Jewish Insider
September 9

The COVID-19 Pandemic Has Been Buffeting American Jewry for Months. What Lies Ahead?

Description - News Article

Source - Jewish Telegraphic Agency
September 1

JResponse®: Adapting to Support the JCC Movement in a Pandemic

Description - Article

Source - eJewish Philanthropy
August 28

Help Us Measure Jewish Giving During Covid

Help Us Measure Jewish Giving During Covid

Back to Business: Guide for Reopening Jewish Institutions

Back to Business: Guide for Reopening Jewish Institutions

Source - Secure Community Network (Convened by Jewish Federations of North America & Conference of Presidents)
July

Planning Reopenings Amid Pandemic, Jewish Institutions Navigate Minefield of Challenges

Description - Article (Sponsored by JFNA)

Source - Jewish Telegraphic Agency
August 3

Jewish Community Response and Impact Fund (JCRIF) Awards $10 Million to 20+ Jewish Organizations

Description - Announcement

Source - Jewish Community Response & Impact Fund
July 20

NYC’s Flagship JCC Cuts 35% of Jobs as Pandemic Layoffs Continue

Description - News Article

Source - Jewish Telegraphic Agency
July 10

Passion, Perseverance and Grit: The Untold Story of Jewish Day Camps During the COVID Summer of 2020

Description - Article

Source - eJewish Philanthropy
July 12

1,000 Jewish Groups Received at Least $500 Million in Government Loans. Some Laid off Staff Anyway.

Description - News Article

Source - Jewish Telegraphic Agency
July 8

Which Jewish Groups Got the Biggest Coronavirus Loans from the Government — and Why?

Description - News article

Source - The Forward
June 8

The Coronavirus Is Killing Off American Jewish Institutional Life

Description - Article

Source - Tablet
June 7

We Must Support Our JCCs in These Troubled Times

Description - Editorial

Source - The Jewish News of Northern California
June 25

San Francisco JCC Lays Off 150 Employees, Slashes Budget by More Than 40 Percent

Description - News Article

Source - The Jewish News of Northern California
June 15

New York Is Allowing Day Camps to Open. Some Jewish Camps Are Still Staying Closed.

Description - News Article

Source - Jewish Telegraphic Agency
June 9

Where Does the Jewish Community Center Movement Go from Here?

Description - News Article

Source - Jewish Insider
June 3

A ‘Super Fund’ Aims to Keep Jewish Nonprofit World From Sinking

Description - News article

Source - New York Jewish Week
June 2

San Francisco Bay Area’s Jewish Community and Philanthropic Response to COVID-19

San Francisco Bay Area’s Jewish Community and Philanthropic Response to COVID-19

Source - JFN webinar
May 26

A Florida JCC Survived the Pandemic with no Layoffs. Now It’s Reopening.

Description - News article

Source - Jewish Telegraphic Agency
May 22

Introducing the Jewish Community Response and Impact Fund

Introducing the Jewish Community Response and Impact Fund

Source - JFN webinar
May 11

Resources Coming Soon

Nonprofit Funding Proposals

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