Rosner's Domain: Jay Ruderman on the relations between Jewish funders and Jewish organizations

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I met Jay Ruderman of the Jay Ruderman of the Ruderman Family Charitable Foundation for coffee, and we had a long conversation about Jewish funding, followed by this email interview. Ruderman was a life long Bostonian until moving to Israel three years ago. He attended Brandeis University, graduating with honors, and Boston University School of Law. Upon graduating from law school, Jay embarked on a career as an Assistant District Attorney in Salem, Massachusetts. In 2001, Jay became the Deputy Director of AIPAC, The American Israel Public Affairs Committee, in New England. After moving to Israel with his family in 2005, Jay enlisted in the Israel Defense Forces, and became the Liaison between the IDF and Diaspora Jewry. Later, Jay returned to AIPAC, working in the Jerusalem office. He currently is the President of the Ruderman Foundation and lives in Rehovot with his wife and four children.

1. You think that Jewish organizations don't yet react to the new zeitgeist of Jewish philanthropy. What do you mean by that?

I believe that the days of funders writing a large check to major Jewish organizations, trusting that they will use the money wisely, are numbered. I believe that more and more funders are choosing the model that we have chosen, namely to engage with major Jewish organizations as a full fledged partner in specific projects. Although some Jewish organizations are adapting to this new approach to funding, and working with foundations as their partners, others have not yet changed the way they work. I believe that with time, organizations that resist this new partnership model will experience increasing difficulties raising the funds they need to survive. 

2. What is it that they should do, and can do, better?

Foundations and funders bring a wealth of experience to each project they choose to fund, in addition to their actual funding. Funders by nature have had success in business, public service, and other pursuits. These provide them with real life experience that can help organizations prosper. In short, many funders know how to make a project successful. I believe that it would behoove Jewish organizations to view their funders and potential funders as full partners, who can help them successfully design and run their projects.  

3. How about those arguing that It's Jewish funders who should somewhat change their attitudes and be more attuned to "real" needs of the community rather than toy with "pet projects" they like - do you think this criticism has some merit?

Firstly I must say that I believe that funders do seek to invest and leverage their funding to help address the "real" needs of the community.  I believe that in order for a foundation or funder to make a real impact on society with their funding they must focus on a specific area and channel most of their funding to this area. 

Take our foundation, the Ruderman Family Charitable Foundation, as an example. We have chosen to focus on helping to improve the lives of people with special needs. We don't seek to tackle every problem in our community, but we would like to make a difference in one particular area of focus. I believe that each foundation and funder must seek to focus on the particular issue that resonates with them.  Every funder cannot try to alleviate every problem facing our community. Having said that, we should listen to the professionals in charge of Jewish organizations and take it upon ourselves to learn about the issues that they feel need to be addressed.

4. In  a previous interview I had (with Jack Ukeles) it was argued that "This is the time for those with access to power to do serious and systematic thinking about what the Jewish organization landscape should look like post-crisis". Any ideas?

I believe that the marketplace will determine what the post-crisis Jewish organizational landscape will look like. Those organizations which address the real needs of the community and successfully engage the new generation of funders will prosper.  The others will most likely fail.

5. The Forward revealed last week that very few top executives of Jewish organizations bothered to take a pay-cut because of the crisis. What does it tell you?

The business of running a foundation and engaging in philanthropy as a funder is a business and no one that I know who runs a business is interested in investing in organizations who waste money. Funders should conduct their due diligence when seeking to make grants the same way they would when investing in a business venture. We should demand transparency from organizations and insist that they treat funders as true business partners. I believe that a top executive who runs his organization well deserves to be appropriately compensated, based on market price, however organizations who waste funders' investments will quickly find trouble engaging new investors.