On my very first day as CEO of the Jewish Federation, I had breakfast with a leading donor who posed an unexpected question: "What will you do if I walk out of this restaurant and a safe falls from the 3^rd floor and kills me?"

This question, while startling, highlighted an important issue - the need for endowments for our Jewish organizations in our community.

Portland's Jewish community, while vibrant, is not considered wealthy compared to similar cities. We lack the wealth creation seen in places like Seattle or the Bay Area, where new companies going public have created numerous millionaires overnight. Many of our community’s most generous donors are long-term Portland families with their own businesses. 

This year, the Jewish Federation faced a significant challenge when we saw a $430,000 reduction in our annual campaign due to people moving or passing away. Although we managed to make up most of the difference, such losses are difficult for any non-profit to absorb.

The impact of these losses extends beyond our organization. These same donors were actually giving $610,000 in total to various Jewish organizations across the community. While the Jewish Federation saw a major loss, other organizations may have lost gifts of $10,000, $5,000, or $1,000. No matter the size, it makes an impact! In one case a donor did leave a bequest in their will for the organization's endowment - as wonderful as that is, the bequest did not generate enough income to equal their previous contribution level (an endowment can be at any level, but we typically think of 20x the current gift).

This situation will happen again and again over the next several years, sadly, as older donors (many of who are our community's most significant philanthropists) pass away. It is difficult for any organization to make up for the loss of let us say a $25,000 or $10,000 contribution. We can always hope their family (who may/may not live in Portland) will continue the generosity. I learned long ago, hope is not a strategy. 

This situation underscores a critical issue: The non-profit community in Portland (Jewish and general) is not well-endowed (no pun intended). We have approximately ten local Jewish organizations (think how many there are and many of them have been around 50 years or more) with an endowment of $1 million or more. Moreover, I recently met with five large Jewish organizations and our combined endowments totaled around $22 million. Sounds like a lot -- the endowments would generate approximately $1,000,000 per year in income. However, while this may seem substantial, for most of these organizations, the endowment generates less than 5% of their overall budget. The non-profit "standard" (depending on size and type of an organization) is for endowment income to be 15 - 40% of the total budget. We have a long ways to go!

This stark reality emphasizes the crucial role endowments play in securing the future of our Jewish community and organizations in Portland. Endowment giving is common for universities and hospitals – now is time for us to endow our Jewish community’s future.

For every Jewish organization... 

every organization’s board... 

and every passionate donor... 

raising endowment funds must be a top priority!

The importance of endowments is addressed in the Talmud. King Monobaz of Adiabene used his treasures to support his people during a famine. When criticized for "wasting" his ancestral wealth, he responded, "My ancestors stored up below, and I am storing above...My ancestors stored in a place that can be tampered with, but I have stored in a place that cannot be tampered with." This passage highlights the importance of investing in lasting, meaningful ways that benefit the community for generations to come.

Endowments for Jewish organizations can be seen as a modern manifestation of "storing above." They provide a stable financial base that allows organizations to focus on their mission rather than constantly worrying about funding.

The challenges that arise when donors at any level pass away without establishing endowments can have significant and often detrimental impacts on the Jewish community. When organizations rely heavily on annual gifts or even membership dues without building endowments, they are vulnerable to financial instability. The sudden loss of a major donor without an endowment in place can lead to a downward spiral, where reduced programming leads to reduced community engagement, which in turn leads to further financial challenges.

The impact on the Jewish community in Portland can be profound: 

• Organizations may be forced to scale back or eliminate vital programs and services.

• Without financial security, organizations may become risk-averse, focusing on survival rather than growth and innovation.

• Without endowments, there is a risk of failing to provide for future generations, contradicting the Jewish value of "l'dor v'dor" (from generation to generation).

• Financial constraints may necessitate layoffs, leading to a loss of institutional knowledge and reduced capacity to serve the community.

• The loss of donors often results in increased pressure on the remaining donor base, which may or may not have the capacity to meet the moment.

• Shrinking resources can impact community morale.

The establishment and growth of endowments for Jewish organizations in Portland is not just a matter of financial prudence, but a fulfillment of Jewish values and teachings. It is a necessity! We need your help to create these lasting financial resources. Endowment funds will ensure the vibrancy of Jewish Portland for generations to come.

I share all of this because August is National Make-A-Will Month. For many of us, this yearly reminder is the motivation we need to finally sit down and either update or create one’s last will and testament. My wife and I are reviewing ours!

First, every adult should have a will — it provides peace of mind for you and your family by providing guidance during what is likely a very difficult time.

Secondly, none of us live forever. Your will can create a philanthropic legacy that lasts beyond your lifetime. You can continue to make a positive impact on our Jewish community long after you leave it. One simple way is to name charities in your will and designate a specific dollar amount or percent of your estate to them. Give cash, stock, property, your IRA, life insurance, or another asset to those charities. Contact your professional advisor, the Oregon Jewish Community Foundation, or me about how you can leave a lasting impact.

And no one says you have to wait until you have died to create an endowment. Do it today so you can enjoy watching the impact your generosity will have.

If you want a strong, vibrant Jewish community for your children and grandchildren, then take 15 minutes to look over your will and consider endowing your charitable giving to the organizations that matter to you. It may be the most important thing you do this month!

Shabbat shalom.

P.S. -- We need one more volunteer for our Hood to Coast team for August 22 at 9:00 p.m. You will help call out race numbers, assist parking race vans, and keep the area clean at Exchange 18 - Columbia County Fairgrounds - 58892 Saulser Rd in St Helens. The shift ends at 1:00 a.m. on August 23 (four hours). If interested, please click here.