The headlines regarding UJA-Federation’s annual campaign invariably focus on the amount of dollars raised, and how that figure compares to the previous year. This year is no exception, with the charity raising $150.8 million, an increase of $3.9 million over 2014.
Court documents show vast majority of agency programs losing money, CFO revolving door, ballooning overhead.
By the time executives of FEGS Health and Human Services system became aware last November of the massive financial crisis they were facing, a “top down analysis” by a new management team and restructuring consultants revealed that 74 percent of its more than 350 programs were losing money.
FEGS, one of the country’s largest Jewish social services agencies, has filed for bankruptcy.
A month after announcing that financial problems were forcing its shutdown, FEGS Health & Human Services made the bankruptcy announcement in a news release on Wednesday.
UJA-Federation of New York CEO Eric Goldstein is among the two dozen nonprofit human services executives and other experts in the field named to a blue-ribbon commission to examine the sudden shuttering of FEGS and other nonprofit human service providers.
Meanwhile, vendors vent that agency hasn’t been paying them.
The union representing 1,400 FEGS employees charged FEGS Health and Human Health System, UJA-Federation of New York’s major social service agency, with engaging in unfair labor practices this week following its precipitous decision to close after discovering in December a $19.4 million deficit.
With the community still grappling with the shocking news that FEGS (Federation Employment and Guidance Service), one of the largest Jewish nonprofits in the country, is going out of business due to a major loss of funds, there is a temptation to connect its demise to the recent troubles of other local Jewish social service agencies.