'Financially unviable' Zionist Federation to restructure with 'drastic cost-cutting'

The Zionist Federation UK is to be restructured in the wake of serious financial problems.

The Israel advocacy organisation, whose history dates back to 1899, announced on Wednesday that “drastic cost-cutting measures” would be required in the short term, “which include the prospect of making staff redundant”.

In a statement, acting chair Richard P Woolf said that since the resignation of Paul Charney as chair last May, the lay leadership had been working with its professional staff “to gain clarity about the state of the Federation’s finances.

“It has sadly now become apparent that in addition to inheriting significant liabilities, the inherited business model of the Zionist Federation is financially unviable.

“Following proper employment procedures, the Zionist Federation will be consulting with its staff on ways to avoid compulsory redundancies.”

Mr Charney, who led the organisation for nine years, told the JC he was “sorry that it is in a bad position. When I left it was in a good position.

“When it was short of money I would personally put money in.”

He said the vast majority of its debt when he left was owed to him and he agreed to relinquish it.

The month before he left, the ZF had held a fundraiser which raised enough money to cover costs for a further six months.

According to a source, the ZF’s deficit amounted to £114,000 in 2020. The World Zionist Organization’s contribution and membership fees only cover a third of operating costs “and it’s not realistic in this day and age for an organisation to raise £80,000 a year for operating expenses.

“The WZO no longer gives us large chunks of money to be able to pay an executive director, an administator, a bookkeeper.” Five staff have been told they are at risk of redundancy.

Martin Stern, representative of Herut UK on the ZF council, was critical of the WZO’s decision to open a London office a few years ago. “That money would save the ZF,” he argued.

Rabbi Lea Muhlstein, chair of Reform and Liberal Zionists movement Arzenu, believed the ZF would “continue to exist in a slimmed down form but be able to build to attract donors again in future and offer activities in partnership with our constituent members”.

Mr Woolf acknowledged “that this is a challenging moment in the history of the Zionist Federation.

“But the current lay leadership is fully committed to rebuild the organisation to ensure that it can fulfil its important role of giving British Jews a strong voice within the international Zionist movement and promoting Zionism with the British Jewish community and in wider British society.”

The ZF had “already put in place discussions on creating an incorporated organisation with a proper governance structure to ensure full transparency into the future”.
It is not registered as a charity because of its political work.