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Yad Vashem drops US partner after $80 million endowment unpaid

Yad Vashem, the World Holocaust Remembrance Center, has chosen to terminate its long-established association with the American Society for Yad Vashem (ASYV) in a dramatic turn of events. This decision emerges against the backdrop of Yad Vashem’s struggles with financial deficits and a broader restructuring in response to a world diminishing in Holocaust survivors.

Central to this controversy is an implication that the ASYV has not been adequately transferring donations meant for Yad Vashem’s programs and activities in Israel. According to statements from Yad Vashem, the ASYV’s ‘endowment’ fund has swelled to over $80 million, yet only a mere $1 million has been relayed annually to the Remembrance Center. This brewing tension has ignited debates in political corridors, with prominent figures like Prime Minister Benjamin Netanyahu allegedly considering the removal of Yad Vashem’s Chairman, Dani Dayan. 

Yad Vashem announced its decision to conclude its longstanding affiliation with the American Society for Yad Vashem (ASYV), a body that was created in order to assist with funding, as part of its broader organizational realignment, according to a letter seen by The Jerusalem Post.

Dayan, in a letter dated July 30th, obtained by Post, elaborated on the move, citing changing global dynamics and the decreasing number of Holocaust survivors. Dayan remarked, “Significant and substantial changes, of global magnitude, have increasingly challenged members of the remembrance community around the world.” A prime challenge he highlighted was the “stark reality of a world bereft of Shoah survivors.”

According to the letter, as part of its restructuring, Yad Vashem has actively sought renewal, financial stabilization, and developmental plans, ensuring its message continues to resonate for future generations.

 Yad Vashem Chairman Dani Dayan speaking at The Jerusalem Post Annual Conference on June 5, 2023. (credit: MARC ISRAEL SELLEM/THE JERUSALEM POST) Yad Vashem Chairman Dani Dayan speaking at The Jerusalem Post Annual Conference on June 5, 2023. (credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)

The Post revealed in February that Yad Vashem was expected to have a deficit of NIS 42.7 million by the end of 2023.

For the past year, the organization’s senior management has been in talks with its more than 500 employees, telling them that many workers would be laid off and sent to retirement, some of whom will not be replaced.

Reducing staff and increasing salaries

To address the evolving challenges, the organization has reduced its staff by 20% and increased the salaries of the remaining staff. Furthermore, support from the Israeli government has been bolstered.

Explaining the decision to end the partnership, Dayan stated in a letter to his board, “We have come to understand that our continued affiliation with the American Society for Yad Vashem may be incompatible with our refocused vision.” However, he assured that both entities would closely collaborate during the transition, ensuring the mission remains uninterrupted.

In an exclusive statement to the Post, Yad Vashem related to this decision on Wednesday: “Yad Vashem Directorate approved Yad Vashem’s new strategy of taking direct responsibility for all its activities worldwide here [in Jerusalem] directly from the Mount of Remembrance. We have done so in order to ensure that every dollar raised in the name of Yad Vashem is used for Yad Vashem programs and activities,” they said, hinting towards the fact that AFYV hasn’t transferred all of the funds it should have, as part of its goal and name.

“It should also be stressed that by strengthening the direct contact between Yad Vashem and its donors we are actually increasing their involvement and impact. Over the years, the ASYV has deposited many of the donations collected on behalf of Yad Vashem into an accumulated fund it refers to as an ‘endowment’ fund,” Yad Vashem accused. “Due to the generosity of American donors to Yad Vashem, the accumulated funds have in recent years reached amounts exceeding eighty $80,000,000, but the ASYV has been forwarding only one million dollars annually to Yad Vashem from this fund.

“Yad Vashem has taken this change, after lengthy consideration and deliberation, even pre-dating Dayan’s chairmanship, precisely out of commitment to the legacy and intentions of the Yad Vashem supporters and friends worldwide,” Yad Vashem concluded.

“Yad Vashem has taken this change, after lengthy consideration and deliberation, even pre-dating Dayan’s chairmanship, precisely out of commitment to the legacy and intentions of the Yad Vashem supporters and friends worldwide.”

Yad Vashem

In a letter dated September 3, 2023, the American Society for Yad Vashem, Inc. (ASYV) responded to Yad Vashem’s decision to disaffiliate from the society. ASYV expressed profound concerns over this move, citing over 40 years of successful collaboration and significant contributions to Yad Vashem. The letter highlights several allegedly “troubling behaviors,” observed since Dayan took the Chairmanship, including a “lack of transparency, disregard for agreements, and increasing hostility.”

Should the disaffiliation proceed, ASYV outlined potential changes, such as halting active fundraising efforts and reiterating their legal rights to their longstanding name and intellectual properties. The organization also emphasized that they would ensure any funds they receive continue to support Yad Vashem’s mission. However, ASYV voiced distress over what they perceive as Yad Vashem’s “diminishing commitment to Holocaust education and commemoration in the US,” particularly “in a time of rising antisemitism.”

Concluding, the letter underscored the severe negative implications of the disaffiliation, from substantial financial losses to the dismantling of educational initiatives and the erosion of decades-long partnerships.

On Tuesday, Yad Vashem released a statement on this issue: “As part of Yad Vashem’s efficiency plans and efforts to improve its global impact, Yad Vashem has carefully reviewed its international partnership agreements and has subsequently decided to assume direct responsibility for all activities worldwide directly from Jerusalem. This shift aims to maximize Yad Vashem’s global mission and further its goals to preserve the memory of the Holocaust and its lessons for future generations. This decision is central to the organization’s comprehensive renewal plan as we begin to face new challenges to Holocaust remembrance in a generation without survivors.”

This means that all fundraising organizations around the world will either need to be considered part of Yad Vashem directly or cease to work with them. 

AFYV also responded to the request of the Post. In a statement on behalf of Leonard Wilf, Immediate Past Chairman of the ASYV, he said “I am extremely proud of ASYV’s decades-long record of accomplishments. I am honored to be part of a dedicated, hard-working team that works collaboratively with our partners at Yad Vashem to advance our shared mission. There is no excuse for Dayan’s recent actions, which have eroded decades of collaborative achievements and will cause irreparable harm to Yad Vashem.”

“We express our deep gratitude for the efforts and support provided by the American Society for Yad Vashem. Even as our relationship evolves, Yad Vashem continues to appreciate the contributions and dedication of our American supporters towards our important mission,” Wilf concluded.

This issue may be what caused Prime Minister Benjamin Netanyahu and his government, such as Education Minister Yoav Kisch (Likud), to promote an agenda that they intend to remove Dayan from his post as chairman of Yad Vashem, igniting a firestorm of controversy, according to a number of reports in the Israeli media.

On Thursday, N12 reported that Sara Netanyahu “was displeased when Dayan invited pop singer Keren Peles to perform at the Yad Vashem Memorial Day ceremony. She subsequently approached the Prime Minister’s Office to intervene,” according to the report. N12 added, “It’s worth noting that Peles has, on multiple occasions, criticized the government and its legal reforms.”

Netanyahu later denied these reports. 

Sources close to Yad Vashem have raised concerns about AFYD’s financial operations. They claim that a significant portion of AFYD’s funds goes towards operational budgets, with only a fraction reaching Yad Vashem. The 2020 990 report for AFYD indicates functional expenses amounting to $19,178,075, a net income of $9,145,416, and a total revenue of $28,323,491. Their total assets for that year stood at $97,920,883. In contrast, 2019 saw a revenue of $16,464,427 against functional expenses of $17,749,199, leading to a deficit of $1,284,772. Meanwhile, in 2018, the revenue was $22,429,190, with functional expenses at $18,547,228, leaving a net income of $3,881,962.

However, an insider close to AFYD provided a detailed breakdown of the 2020 expenses: $16 million was allocated for programming, $1 million for general management and operations, and $2 million for fundraising. Of the $16 million dedicated to programming, $14.725 million was channeled to Yad Vashem, with the remaining $1.25 million supporting US-based programs.

This insider emphasized that the 990 report lumps together US programming and funds sent to Israel under the umbrella term “mission-related.” They also highlighted that fundraising expenses, including their annual dinner, cannot be reported as just the net number. It’s important to note, they stated, that these figures don’t reflect contributions to the endowment made during this period.

The publicly available 990s show a $1.28 million deficit for AFYD in 2019 and a surplus of $9.1 million in 2020. Yet, these numbers don’t capture the full picture of AFYD’s contributions to Yad Vashem. The insider explained that these numbers are based on accrual accounting and not cash.

In 2020, AFYD received several large, multi-year pledges. These were recorded as receivables, resulting in a surplus by the year’s end. In contrast, 2019 saw inflows from restricted donations, which, due to commitments to Yad Vashem projects, were booked as liabilities, leading to a deficit. Nevertheless, in 2019 and 2020, AFYD transferred $12.59 million and $14.7 million respectively to Yad Vashem. They also made contributions to the ASYV endowment and advanced their educational programs annually.

The source affirmed that AFYD’s average grant to Yad Vashem over the past three years has risen to $17.5 million, even as they continue to invest in endowments and programming.

JPost

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