Hebrew Free Loan Interest-Free Lending Since 1897

Transcription

1 Annual Report FY Hebrew Free Loan Interest-Free Lending Since 1897 Laura Whitman and family Vodka and Latke event Biennial Gala

2 2 Welcome Letter from the President and Executive Director Dear Friends, We closed the fiscal year with over $7 million in outstanding loans to members of the Northern California Jewish community the largest amount in the history of the agency. A remarkable achievement for an agency that began 116 years ago with an initial loan fund of $50! We disbursed 433 new loans last fiscal year, bringing the total number of loans in circulation to 925. The loans were given to individuals and families with needs ranging from undergraduate and graduate educational expenses to the costs associated with adopting a child. We helped people to escape the crushing weight of high-interest debt and offered support to people laid off from longterm positions. We are proud of our 116-year tradition of promoting self-sufficiency and financial responsibility through interest-free and cost-free lending. Like our loan recipients, Hebrew Free Loan is committed to its own growth and improvement. As an organization, we continue to challenge ourselves to evolve and innovate, and to stretch ourselves to meet the needs of our local Jewish community. We worked on several ambitious projects this past year, including: building a more robust Business Loan program to support entrepreneurs (after raising the business loan maximum to $50,000 the prior year), streamlining our loan policies to enable more people to receive loans of larger amounts, inviting younger members to our Board of Directors, and raising money to eventually launch a Non-Sectarian Student Loan Fund aimed at supporting low-income students in the Bay Area. Once again, we are inspired by the generosity and the commitment of the Hebrew Free Loan community. On June 9th, we had the pleasure of honoring three of our very best: Arlene Krieger, Rabbi Steven Chester, and Karen Goldberg. The event was a tremendous success, netting the agency close to $150,000! Yet even with the event revenue, we still had to access over $1 million of our reserves to keep up with the increased demand for loans. It all boils down to our donors. As you can imagine, we are busy strategizing ways to replenish our loan funds while meeting our operational needs. We look to you our donors to help us meet this challenge. Your generous donations will ensure that all qualified applicants can count on us in a time of need. Sincerely, Gary Shapiro President Edward L. Cushman Executive Director We are proud of our 116-year tradition of promoting self-sufficiency and financial responsibility through interest-free lending.

3 Who We are 3 What We Do Hebrew Free Loan provides zero-interest loans at no cost to Jewish individuals in Northern California to help them achieve self-sufficiency. Our loans support those who are facing serious financial challenges or realizing life dreams. As loans are repaid, funds are recycled to make new loans. We ve proven the success of this model with a repayment rate of over 99%. Why Loans By offering loans rather than charity, Hebrew Free Loan helps people become, and remain, self-sufficient while maintaining their dignity. Loan is Repaid and New Funds Now Available Loan Recipient Overcomes Challenge or Achieves Dream Loan Application Evaluated and Approved Community Need Torah Mandate Cosigners Support Loan Donors Provide Funds Individual Applies for Loan Our Unique Loan Programs Hebrew Free Loan has established a diverse range of loan programs to meet the specific needs of our clients and the challenges they face in an ever-changing world. Adoption Up to $15,000 Business Up to $50,000 Debt Consolidation Up to $15,000 Emergency Up to $2,000 First-Time Homebuyer Up to $25,000 Health Care Up to $15,000 Institutional Up to $50,000 Life Cycle Up to $6,000 Personal Up to $15,000 Recently Unemployed $2,500 per month, up to $15,000 Special Needs Up to $15,000 Student Up to $6,000 per academic year for undergraduates; up to $10,000 per academic year for graduate and vocational students

4 4 Fiscal Year in Review Loan Activity: July 1, 2012 June 30, 2013 Loan Amounts Number of Loans $15,000 $33,630 $87,090 $90,000 $148,780 $340,840 $383,407 $2,395,266 $486,715 Student / 289 loans % Change in Dollars Loaned from the Previous Year Debt Consolidation / 40 loans Business / 19 loans Personal / 36 loans Health Care / 15 loans Unemployment / 9 loans First-Time Homebuyer / 4 loans Emergency / 20 loans Adoption / 1 loan Loan funds disbursed FY : $3,980,728 Number of loans made FY : 433 Total Dollars currently on loan: $7,015,265 Active loans: 925 Health Care up 99% Debt Consolidation up.2% 1st-Time Homebuyer up 16% Unemployment up 93% Student up 60% Business down 3.5% Personal up 30% Emergency up 8% Adoption up 50%

5 Fiscal Year in Review 5 Where Our Dollars Come From July 1, June 30, 2013 % of Source $ Amount Total Individual Gifts $ 523,830 41% Bequests $ 32,500 3% Grants $ 60,000 5% Events $ 122,506 10% Events, In-kind $ 17,376 1% Investments* $ 519,661 40% Total Revenue $1,275, % * Includes unrealized gain Where Our Dollars Go* July 1, June 30, 2013 % of Area $ Amount Total Community Loan Programs $ 979,734 79% Administration $ 270,109 21% Total Expenditures $1,249, % * Fundraising expenses have been proportionally integrated into each category. Financial Activity July 1, June 30, 2013 Total Accrued Revenue $ 1,388,977 Less Expenses $ - 1,249,843 Net Revenue $ 139,134 Statement of Financial Position July 1, June 30, 2013 Assets Cash, Cash Equivalents & Investments $ 4,639,346 Loans Receivable $ 6,942,620* Other Receivables $ 377,358 Planned Giving Vehicles $ 203,961 Other $ 58,850 Total Assets $ 12,222,135 Liabilities Operating $ 113,516 Loan-related $ 109,290 Other $ 350,752 Total Liabilities $ 573,558 Total Net Assets as of June 30, 2013 $ 11,648,576 Total Net Assets as of June 30, 2012 $ 11,509,442 * Net of Reserve Dollars to Community Loan Programs Dollars to Administration 21% of our dollars, which went toward administrative costs, held constant from the previous year while our loan programs increased. 79% of money spent went to our community lending programs.

6 6 Paying it Forward Former loan recipients who have made an annual donation of at least $54 are honored for their support and designated as members of our Full Circle Club. Full Circle Story: Marcia Kern and James Stern Pay it Forward In 1977, James and Marcia were a young couple living in the Bay Area. James was a law student at University of San Francisco and Marcia was working as a teacher in the Oakland public school district. They didn t have much money, and relied heavily on student loans to get by. When the bank unexpectedly cut their student loan in half, they panicked: Neither of our families could help. We sold everything we owned and still didn t have enough money to pay the tuition. We were desperate. Hebrew Free Loan was there. I remember my husband turning to me before he went into the interview and saying, This is going to be hard for me, Marcia recalled. It was embarrassing for us to have to ask for help. We had fully supported ourselves up to this point so we weren t used to receiving help. Their loan request was approved. A year later, Marcia made their final payment on the loan. I remember feeling proud we paid it off, she said. We made a pledge to always donate to Jewish charities with deep appreciation for the help we received from Hebrew Free Loan. Marcia and James are honored to have kept that pledge, and as donors are recognized by Hebrew Free Loan s Full Circle Club. We will never forget what Hebrew Free Loan did to help us, and we try to pay it forward as much as we can. It is a joy to look back on the blessings we ve received in our life and pass those on to others. We will never forget what Hebrew Free Loan did to help us, and we try to pay it forward as much as we can. It is a joy to look back on the blessings we ve received in our life and pass those on to others. 60% more Student Loan dollars were disbursed this year than the previous year. Marcia and James

7 Paying it Forward 7 The Full Circle Club is an impactful way for former loan recipients to acknowledge the support they received and continue the cycle of giving by helping others achieve their dreams. Full Circle Story: Laura Whitman Gives Back Laura Whitman turned to Hebrew Free Loan, not once, but twice, to help pay for her graduate education. The first time was in 1992 while pursuing a Masters Degree at UC Santa Barbara in molecular biology. The second time was in 1996 while pursing a second Masters Degree at Stanford University in molecular pharmacology. I remember attending the interview with the executive director and he laughingly told me there was a 100% payback rate, as the system worked on Jewish guilt. I remember him saying in this very sweet and very straightforward way, You will pay back this loan. And when you re ready, you will donate back. He set this very clear expectation, and I remember thinking what a great attitude that was. Today, as the director of marketing for a small biotech company, Laura is grateful to Hebrew Free Loan for helping finance her education. I use my education in molecular biology and molecular pharmacology every day in my job. I would not have the career that I have without it. The way Hebrew Free Loan helps the collective community enable others to pursue their dreams was an excellent model for me as a young person. It is something I have always been impressed by. It is a privilege that I am now in a position to help this wonderful organization to continue to provide opportunities to others. 289 Student loans were given out. Laura and daughter, Rebecca It is a privilege that I am now in a position to help this wonderful organization to continue to provide opportunities to others.

8 8 Who We Help Making a Family: Rabbi Hugh Seid-Valencia and Tricia Creason-Valencia In 2001, newlyweds Tricia and Hugh reached out to Hebrew Free Loan to pay for Hugh s third year of rabbinical school at Ben-Gurion University in Israel. Their relationship to the agency didn t end there. The couple knew right away that they wanted to start a family, and that their path to parenthood would be through adoption. Blessed by a small family inheritance, Tricia and Hugh were able to Elijah, Hugh, Tricia, and Dahlia adopt their daughter Dahlia, without financial assistance. But when it came to adopting their second child, Elijah, they didn t have the financial means to move forward. We were ready to go, and we even had our adoption agency picked out, but money was a barrier. We felt emotionally stuck. Once again, the couple turned to Hebrew Free Loan for support. Tricia and Hugh feel incredibly grateful for their family. They are proud parents to Dahlia, now 9, and Elijah, now 6. It really feels like the agency is there for these celebratory moments, to help you achieve these amazing milestones. They opened the door to us and allowed us to become the family we always wanted to be, said Tricia. It really feels like the agency is there for these celebratory moments, to help you achieve these amazing milestones. They opened the door to us and allowed us to become the family we always wanted to be. 91% of loan recipients reported that Hebrew Free Loan helped them achieve their goals.

9 Who Helps Us 9 Impacting Future Generations: Rochelle Rubenstein, Legacy Society Member Rochelle Shell Rubenstein had always had a close relationship with her father, Arthur Stadt. So after Arthur s passing, Shell was surprised to learn something about him that she had never known: her dad started his business, Pacific Special Messenger Service, with a loan from Hebrew Free Loan. Going through her father s papers after his death, Shell found the original contract for the loan of $300, which was dated October 29, Shell also found the notebook where her dad carefully kept track of his payments. He paid his loan back at $7.50 a week, until it was completely paid off on August 12, 1940, less than one year later. In memory of both her parents, and in appreciation of the help her dad was able to receive from Hebrew Free Loan, Shell set up the Arthur and Dorothy Stadt Permanent Named Fund with Hebrew Free Loan. The agency s mission is Tzedakah is an important part of Jewish life, and I want to make sure I am doing my part for generations to come. an intrinsic part of my being, said Shell. People should be able to get a loan and pay it back rather than have money handed to them. It s so much more meaningful. Shell also set up the Rubenstein Memorial Family Loan Fund at Hebrew Free Loan, with money designated to Hebrew Free Loan by her late husband, Chuck. She is also a member of the Legacy Society: Shell has named Hebrew Free Loan as a beneficiary in her will. I don t have a large amount of money, but I want to leave it where I think it will make the most impact, she explained. Tzedakah is an important part of Jewish life, and I want to make sure I am doing my part for generations to come. 19 Business Loans were made, averaging $20,179 per loan. Shell and granddaughter, Jillian

10 10 Special Events Major Fundraising Event Biennial Gala On June 9th, over 280 attendees gathered from the East Bay, Marin, the Peninsula and San Francisco for Supporting the Individual, Strengthening the Community, an inspiring, informative, and heartfelt evening to honor Arlene Krieger, Rabbi Steven Chester, and Karen Goldberg. This joyous evening celebrated the power of community to impact lives through Hebrew Free Loan s interest-free loan programs. Together, we raised nearly $150,000 so that Hebrew Free Loan can continue to help people in need. Young Adult Fundraising Event Vodka and Latke Our inaugural Vodka & Latke event drew over 175 young adults from the former Soviet community. Hebrew Free Loan was instrumental in providing interest-free loans for basic needs and support during the two major waves of immigration of Jews from the former Soviet Union in the 1980s and 1990s. This annual event is part of a renewed effort to reconnect and cultivate relationships with an emerging community of younger donors who either directly benefitted from our services or have family members who received support from Hebrew Free Loan. Gala Vodka and Latke Vodka and Latke Gala Gala Vodka and Latke

11 Hebrew Free LoaN Interest-free Lending Since Steuart St., Suite 520, San Francisco, CA / Fax: 415/ Officers Gary Shapiro President John J. Riley First Vice President Peter E. Williams, Jr. Second Vice President Howard Shwiff Treasurer Sharon Silverman Assistant Secretary Elton Blum Immediate Past President Edward L. Cushman Executive Director Board of Directors Mark B. Abelson Phil Auerbach Karen Daitch Sharon Goldstein Steve Grau Shari Ilsen David Klein H. David Kwinter Milla Lvovich Raquel Newman Paul Orbuch Gregg Rubenstein Josh Rutberg Steve Sachs Lisa Spiegel Howard Steiermann Debbie Chizever Taback Bob Tandler Steve Zimmerman Honorary Advisory Council Arthur S. BeckerA Custodian of Valuables A. Arthur Hirschhorn Matook Nissim Past Presidents Arthur S. BeckerA Stephen C. Becker William Breall, M.D. Leonard A. Cohn Daniel T. Goldberg Frances D. Green Milton Greenfield Arlene Krieger Stuart R. Pollak Executive Directors Emeriti Julius Blackman Irwin Wiener Staff Edward L. Cushman Executive Director Cindy Rogoway Associate Director Jordan Gill Development Director Bonni Lesser Finance Director Beth Blackman Finance & Program Associate Dana Cappelloni Communications Manager Ellen McGarvey Collections Administrator Emma Guttman-Slater Loan Administrator A Of blessed memory Sylvia Waxman (seated) presents Hebrew Free Loan board members with a $100,000 check to establish the Student Loan Program, Standing, left to right: Al Karp, Daniel Goldberg, Marty Labé, Abraham Bernstein MD, Ben Blumenthal, Julius Blackman (Executive Director), and Clarence Krieger.