Subscribe to Print Edition | Fri., June 13, 2008 Sivan 10, 5768 | | Israel Time: 05:14 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Peres Conference Business Real Estate Easy Start Travel Week's End Anglo File

Last update - 18:02 12/06/2008 NGOs downsizing projects, dismissing staff as dollar drops By Ruth Sinai Tags: NGOs, Israel, Dollar Non-governmental organizations providing health, education and welfare services have begun downsizing staff and programming due to the erosion of the dollar, which has cut into contributions and affected the cost of fuel and food. Haaretz has learned that dozens of NGO personnel have been let go over the past few weeks and hundreds more dismissals are expected in the coming months. According to Dr. Yaron Sokolov, director of Israeli Civic Leadership Association, an NGO umbrella group, the plummeting value of the dollar has cost NGOs $500 million. Advertisement Meir Panim, the largest provider of food to the poor, has let go 31 of its 134 workers, mainly cooks. "These are workers from outlying peripheral areas who are their family's main breadwinner and it will be very difficult for them to leave," said Meir Panim's founder Dudi Zilbershlag. Meir Panim has had to close down soup kitchens, order some food from caterers and cut back on distribution to the poor to economize, Zilbershlag said, adding that his organization had lost NIS 6 million of its NIS 50 million budget. Zilbershlag said that beyond the nose-diving value of the dollar, contributions have gone down because of the economic slowdown in the United States. Akim, Israel's largest organization assisting the developmentally disabled, has had to fire social workers, psychologists and lawyers. "We've taken a huge hit and the deficits are growing," Akim head Yossi Malka said, noting that 60 percent of Akim's budget is raised abroad. Malka says the funding Akim receives from the Social Affairs Ministry has not been increased to cover rising food costs. In the past, they could cover the shortfall with donations, but this source is not something you can depend on, he said. Rising fuel costs also affect the transportation Akim provides to school, work, medical treatments, Malka adds. Responding to the crisis Yad Sarah, the large medical equipment lending organization, has also felt the rise in fuel prices, which have put a crimp in its transportation programs for the handicapped and seniors and delivering equipment. Malka says he will soon be calling a meeting of all the associations providing care to the developmentally disabled to discuss ways in which to respond to the crisis. A community empowerment group, Yedid, says it wants to create a forum of foundations and large associations to pressure the government to assist them. Among other things, the forum would demand the annulment of the 7.5 percent tax on salaries of NGO employees. Another funding issue is that many of the organizations depend on the government matching the funds they raise. As soon as the foreign donations dip, so do government contributions. "The situation is critical," Yedid's chairman, executive director of Bateman Projects Gadi Haran, says, noting that while income is falling, more people are seeking assistance from NGOs. Bookmark to del.icio.us   Gin and Jews American rapper Snoop Dogg slated to perform in Ramat Gan. Late date Scientists revive 2,000-year-old date seed found at Masada.   1.   Article made a mistake - Income is rising in Israel, not falling 19:11  |  Daniel Korn 12/06/08   2.   no mistake - income is not rising 23:57  |  Kulud 12/06/08   3.   #1 David Korn 03:30  |  Chris Linthwaite 13/06/08   4.   It`s time for wealthy Israelis & Americans to help NGO`s 05:00  |  Dutch 13/06/08

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