Leading in Challenging Times

Overview
Welcome and Introduction, Jane Scher, Jewish Community Foundation Executive Committee member, founding chair of ELI and current chair of GLI made inspiring opening remarks.
Objectives and Framework, Marjory Kaplan, CEO, Jewish Community Foundation, defined session objectives and presented creative ideas from three organizations.
Jewish Perspective, Rabbi David Frank, senior rabbi, Temple Solel, interpreted three texts related to governance.
Panel Discussion and Lessons Learned, Two of our community’s most respected and admired leaders, Jerry Katzin and Edgar Berner, were interviewed by Marjory about how organizations can effectively face these challenging times.
Organizational Groups, Each group met individually to devise their strategies and then shared their results with the group. Paul Van Dolah, our community consultant called on each group to report and summarized the findings: keep calm. Find wisdom to guide us through these difficult times. Think creatively, strategically and rely on each other.
Closing Observations, Rabbi Michael Berk, senior rabbi of Congregation Beth Israel, summarized the session and Gail Littman, Director of Endowments, Jewish Community Foundation, closed the session with these observations.
Resources on Leadership and Fundraising, Each participant was given a group of articles and resources.

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Overview

Main objective: To convene Jewish community organizations to gain insights and share best practices related to the economic downturn. This is part of the Jewish Community Foundation’s key strategy in building capacity of Jewish nonprofits.

Key questions of the day: How can we govern more wisely and manage more strategically to maintain and even strengthen our organizations to serve the community?

Outcome: Ideally, each organization will leave the session with two or three strategies or actions related to their management or governance practices.

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Welcome and Introduction:

Jane Scher, Jewish Community Foundation Executive Committee member
Founding Chair of ELI
Chair of GLI

It is with great pleasure that we welcome the ELI and the GLI teams here today representing 25 different community organizations.

To distinguish between the two, ELI is a ground-breaking and remarkably successful community endeavor that has raised more than $150 million in bequests and endowments over the last few years. And, GLI offers us an opportunity to work on governance practices

Our goals in GLI are to work together to showcase and share the many things we do so well, to discuss our challenges, and to collaborate and learn from one another in ways that will ultimately elevate our governance practices and inspire confidence in the future leadership of each of us as individual organizations, and of the entire community as a whole.

The Wexner Alumni of San Diego have partnered with the Jewish Community Foundation in creating and funding GLI and in rolling it out into the community. It is very gratifying that many Wexner alumni serve as members of the GLI committee and of the community organization teams.

We are privileged to bring you wonderful teachers today. It is our extreme honor to welcome Jerry Katzin and Edgar Berner, who join us to share their wisdom and perspective on leadership. Rabbi David Frank, also a member of the GLI committee, seems to have the special gift of teaching us the Jewish perspective of everything we are trying to do in a beautiful and meaningful way. Paul Van Dolah, our consultant, is becoming a beloved friend of our community and we are grateful for your friendship and guidance.

Today’s financial climate is creating stress, fear, concern and, dare I say it, opportunity. The questions are how do we do more with less, how do we continue to be strong with reduced dollars, how do we look to other kinds of resources and continue to operate in a highly competitive environment? Inspired leadership, in times like this, is crucial for all of us.

Governance is a major issue in attracting Jewish money. In working with endowments and bequests, we discovered that confidence in an organization’s future leadership is a compelling reason for giving, and long-term strong governance practices build donors’ trust and confidence. Our success with ELI is a great demonstration of the trust our community has in you and in the future leadership of our organizations.

The current economic situation has presented us all with a defining moment. How we handle it will decide our future and provide us all with the opportunity of a transformational experience for our organizations and our community, an opportunity to use our strength, our values and our imaginations to be creative and courageous, and to come up with a plan.

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Objectives and Framework: Opening Remarks

Marjory Kaplan, CEO, Jewish Community Foundation

Welcome everyone. It’s very important that we’re meeting today to gain insights and share best practices related to the economic downturn. The key question of the day is: how can we govern more wisely and mange more strategically? How can we maintain and even strengthen our organizations to serve the community?

Today’s goal is for you and your organization to leave the session with at least two or three strategies or action steps that will help you face these challenging times.

After my introductory comments, we’ll hear from Rabbi Frank and then from two highly respected leaders of our community, Jerry Katzin and Edgar Berner. After that, our consultant, Paul Van Dolah, will describe our team exercise, we’ll break into our organizational groups and then we’ll come back together to share ideas and strategies.

These past few months have been exceedingly challenging and I have been alert to creative solutions that our community is putting in place. To set the tone for our session, let me describe just two examples:

Rabbi Lisa Goldstein of Hillel arranged with Alan Rusonick, executive director of the Agency for Jewish Education, to enroll her staff members in the Melton Program at no cost. The program is greatly enriching the way the Hillel staff works with students on our campuses.

Rabbi Philip Graubart at Congregation Beth El is organizing the congregation for increased use of volunteers – for speaking, performing, cleaning, cooking so that synagogue programming stays strong.

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Jewish Perspective:

Rabbi David Frank, Senior Rabbi, Temple Solel

Rabbi Frank interpreted three texts (below) about governing in challenging times:

Don’t get too attached to a specific time period. Everything is temporal. This too shall pass.
We should not use this challenging time as an excuse to not to give. Now, more than ever, is when the community needs us to give.
To whom does our wealth actually belong? Everything we’ve earned belongs to G-d; it’s our job to disperse it in the community.
When we die, our wealth doesn’t come with us but the merit of tzedakah does.
We have become very attached to our resources. Do we own them or do they own us? Compare the services your organization provides with its mission to make sure they’re aligned.

Who Humbles The Proud And Raises The Lowly . . .

King Solomon once searched for a cure against depression. He assembled his wise men together. They meditated for a long time and gave him the following advice: make yourself a ring and have thereon engraved the words, "This too shall pass." The King carried out the advice. He had the ring made and wore it constantly. Every time he felt sad and depressed, he looked at the ring, whereon his mood would change and he would feel cheerful. Israel Folklore Archive # 126
A person should assume that he is continually relying on sustenance from the Holy One, blessed be He, and just as he prays that the Holy One listens to his cries and supplications, so shall he listen to the cries of the poor. A person should also consider that the wheel of fortune is ever revolving, and that either he himself, or his child, or his grandchild could eventually need Tzedakah. Let no person say: “Why should I dissipate my wealth by giving it to the poor?” He must bear in mind that the wealth really belongs not to him, but that it was simply given to him as a trust with which to execute the will of the One who has entrusted His fund to him. And Tzedakah is a person’s real portion which he has saved from all his toil in this world. Kitzur Shulchan Aruch 34:1
Renunciation is the secret of mastery. Who loves money absolutely will never have his fill of money (Ecclesiastes 5:9). People become masters rather than slaves of their achievements when they develop the capacity to let go of their accomplishments, even if only for the moment. Rabbi Irving Greenberg

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Panel Discussion on Lessons Learned: Jerry Katzin and Edgar Berner, two of our community’s most respected and admired leaders, were interviewed by Marjory Kaplan

Jerry Katzin had a very successful career in business and investments, has served on the board of Qualcomm and other corporations and community organizations, and is a past president of the Jewish Community Foundation.

Edgar Berner is well known as an entrepreneur, with many successful companies including Hot Topic and Sweet Factory. He consults with and has served on many corporate and community boards. He is also a past president of the Jewish Community Foundation.

Marjory Kaplan, moderator

Q. Marjory Kaplan: We’ve all seen difficult times before. How would you characterize the times we’re witnessing as they relate to others you’ve seen?

A. Jerry Katzin: In 1929, the market fell 95 percent. We experienced the biggest economic downturn from 1932 to 1935. Today, we see the same mistakes happening as we did in Hoover’s day. Society witnesses a cycle of breakdowns and upswings about every 10 years but no one can tell us how long this downturn will last. Typically, these cycles last for about 16 months.

Q. Marjory Kaplan: Describe one particular management challenge you faced during a tough economic time. How did you approach it? What were the lessons learned?

A. Edgar Berner: In the late 1960s and early 1970s, people couldn’t get gas in their cars and they certainly weren’t shopping at malls. We used direct mail campaigns to get customers back into stores. We can use the same method today with donors. Keep talking with and stay close to your donors. Don’t cut programs that are important to your donors and postpone creating new programs. Don’t expand staff. Start from scratch, with zero-based budgeting, and ask what is our core assignment and our main purpose?

Q. Marjory Kaplan: If you headed a board today, what questions would you be asking?

A. Jerry Katzin: What’s coming in and what’s going out? What is the status of our reserves? How can we rework the budget? We have to start from scratch with the budget. Carefully scrutinize new programs and how staff is spending its time.

Edgar Berner: Demand total transparency. What is the current plan? Board must understand all the financials and challenge and support the CEO and other staff members. How are we retaining members and donors? Take a look at programs that could be postponed yet retain essential programs and infrastructure.

Q. Marjory Kaplan: What is the best way for a board member or staff member to keep the pulse on what is happening so the organization can respond?

A. Edgar Berner: “A little wave can evolve into a tsunami.” Board and staff need to take action early. Organizations need membership, bequests, grants and participation from the top-level to survive.

Q. Marjory Kaplan: How can the board strengthen its oversight?

A. Jerry Katzin: The board must meet regularly and frequently. It must meet face-to-face and in a harmonious atmosphere. Everyone on the board should be able to understand the financials and if someone doesn’t, he or she should ask questions until they do.

Q. Marjory Kaplan: What one piece of advice do you have for the people in this room who are managing and governing our Jewish organizations?

A. Edgar Berner and Jerry Katzin: Things will get better. Maintain total transparency in everything you do; people are much more willing to support transparent organizations. Develop new ideas with your board and use them to make and support decisions for your organization.

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Organizational Groups: Each group met individually to devise their strategies and then shared their results with the group.

Facilitator: Paul Van Dolah, consultant

Ideas Shared by Organizations:

Agency 1

Support your staff
Keep up morale
Find a balance between reality and fear

Agency 2

Review each program carefully in the context of the organization’s goals and ask how assets could be better deployed. This may be a year-long process.
Tell the community you’re here to help.
This downturn is an enormous opportunity to come together as a community and to bring staff together.

Agency 3

Stay targeted in core programs. People will attend programs such as book fairs and camps if you stay true to your established price points.
Deliver better customer service. This will help the organization stand out.
Build your reputation and relationships this year. Customer service will go a long way during these uncertain times.
Anticipate issues – don’t react to them. For example: what will you do if only 50 percent of your donors can make their annual gift?
Appreciate that times are tough and re-affirm what donors have done in the past.
Allow donors to share their concerns and frustrations.

Agency 4

Create new business opportunities. Determine which should be delayed and which should go forward.
Invest in the future; don’t worry about the present.
Go to your board for suggestions.

Agency 5

Get your board more involved in the top line by soliciting donations and less involved in micro-managing operations.
Find out what is successful and how to engage the board to get more involved

Synagogue 1

The current economy is a speed bump in the road of life. The community will grow again.
We need more of a collaborative effort between synagogues and agencies.
Develop initiatives to serve young families
Hold more services and synagogue events so as to be there for people who are staying in town more than ever

Synagogue 2

As members need help, remember finances and resources need to be managed.
Engage board to identify most effective programming.
Continue to manage the organization’s finances and resources well.
Protect rabbis and staff from overwork.

Synagogue 3

Reconstitute advisory council to gain guidance from elder statesmen
Ask for 100 percent participation in fundraising rather than larger gifts
Integrate members into the community, support new members, concentrate on caring for the community
Contact donors: reaffirm their connection with the community

Synagogue 4

Check in with congregants. If they can’t renew dues, ask them if they still feel part of the community.
Since we can’t change fixed expenses (e.g., rent, utilities, salaries) focus on what is changeable and cut back on that.

Day School

Communicate more positively with donors, constituents, faculty and staff.
How the students are being served regardless of economic uncertainty is the number one priority; let’s not lose sight of that.

Additional Ideas Offered

Recognize donors for cumulative giving; consider not downgrading them in publications when they have had a long history with your organization
Use time to train staff members in other areas
Be sure to appreciate extra efforts of staff
Focus on legacy giving. During these challenging times, donors may feel more comfortable committing to gifts after their lifetimes than in the present.
Honor donors for their longtime commitment even if they aren’t able to give this year.

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Closing Observations:

Rabbi Michael Berk, Senior Rabbi, Congregation Beth Israel

Find a way to do the right thing; it’s our duty to take care of each other.
Given the economic turmoil, I’ve been thinking a lot lately about the important distinction between optimism and hope.
Being optimistic has not come up today, but we talked a lot about being hopeful. To have hope means to believe that whatever happens, we can find a way of coping and building towards the future
I encourage you not to lose sight of the importance of hope. “We don’t know that everything will turn out well but we definitely have hope that it will.”
Rabbi Berk described two examples of being hopeful:

Israel rescued the Ethiopian Jewish population, insisting on taking old and sick people first, ahead of those who were stable and wealthy. This is a perfect example of what hope really means in the most extraordinary time of redemption in history of human kind. The Israelis did what was right first and then faced the practical question of how they were going to take care of the old and the sick. They found a way to do the right thing; it’s our duty to take care of each other.

After the Jewish Community Center was bombed in Argentina, all the Jewish agencies shut down out of fear that the same thing could happen again. A rabbi and cantor decided to open the doors to their synagogue to everyone, providing comfort and hope for the Jewish people. This rabbi and cantor created hope by bringing the community together and not letting anyone forget where they came from. This example is what being Jewish is all about. Their purpose was to serve the Jewish community and they fulfilled their commitment by opening up their doors when no one else would.

Gail Littman, Director of Endowments, Jewish Community Foundation

The birkat hamazon, the prayer for thanksgiving after a bountiful meal, recognizes that it may be in times of great success that we believe we did it all on our own and might forget upon whom we depend and owe gratitude.

In want and in plenty, in fear and festivity, we need to remind ourselves of the orientation of heart, soul and behavior that will offer in resiliency, the ability to manage our circumstances with faith in ourselves and in others. Because that is what resilience really is -- the ability to face life with courage, optimism and determination, knowing that there will be good times and difficult times, but that we can get through them all because we have what it takes and because we are part of something of great meaning and importance.

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Resources on Leadership and Fundraising

Leadership Strategies:

Agencies Must Gird Themselves for a Recession
Jeffrey Solomon, The Forward

Managing in Challenging Times

Marjory Kaplan

A Message from Rabbi Graubart