MERCAZ USA Newsletter — Winter 2009-2010

WZO Celebrates Its Renewed Independence

Eighty years ago, the World Zionist Organization created the Jewish Agency for Israel as its "agent" for handling the day-to-day needs of the new Jewish enterprise in pre-state Palestine. However, over time, the connection between the mother and daughter organizations became more complicated, with finances and structure intertwined in such a way that the relationship between the two "national institutions" reversed.

Now, as the Zionist movement begins the celebration of the 150th anniversary of Theodore Herzl's birth, the two organizations have agreed that it is time again for the WZO to declare its independence and stand financially and organizationally on its own feet.

In exchange for allowing the Jewish Agency to phase out its annual allocation to the WZO, going from $15 million a dozen years ago to $4.5 million in 2009 and $4 million through 2013, the last four years of JAFI funding, the WZO has regained title to significant Zionist real estate holdings in Tel Aviv and key investments in the Bank Leumi holding company.

MERCAZ USA -- MERCAZ thanks donors who contributed to raise 3 scholarships for needy children to attend summer day camp at Ashkelon’s Masorti congregation Netzach Israel

MERCAZ thanks donors who contributed to raise 3 scholarships for needy children to attend summer day camp at Ashkelon's Masorti congregation Netzach Israel

In addition, on top of the expected income from rentals and dividends and an annual allocation of just over $5 million from the Keren Kayemet LeYisrael — Jewish National Fund, the Israel government has pledged to begin funding the Zionist Movement, starting with 10 million NIS ($2.5 million) in each of the next two years.

With these new sources of funding in hand and with the freedom to elect its own chairman who would be independent of the responsibilities for managing the Jewish Agency, the WZO should be in position to strengthen Zionist activities in the Diaspora, including the development of Conservative/Masorti communities in Europe and South America.

It should be noted that the changes being undertaken in the WZO-JAFI relationship do not affect the annual $1.5 million JAFI "Stream Funding" allocation for the institutions of Masorti Judaism in Israel.

At the beginning of the 20th century, the WZO, which was instituted by the First Zionist Congress convened by Theodore Herzl in 1897, was the only officially recognized spokesman for the Zionist program. However, while the WZO was effective as a parliamentary debate society, it was not the kind of organization that could effectively create and organize the Jewish state-in-the-making.

Therefore, in 1929, the WZO created an agent, the "Jewish Agency" ("Sochnut" in Hebrew), as the legal entity to represent and manage the "Yishuv", the new Zionist community, vis-à-vis the British Mandatory authorities and the League of Nations. Fundraising to advance the Zionist movement and support the Yishuv, however, was conducted by both the WZO and JAFI, with the result being a competition for dollars and a duplication of services.

Consequently, following the 1967 Six Day War, the WZO signed a "reconstitution agreement" with the Jewish Agency, effectively turning over exclusive control for all fundraising for Israel to the Jewish Agency and its Jewish Federation affiliates in the United States and around the world, in exchange for an annual allocation of about $15 million.

Additionally, the Zionists agreed to share all governance and portfolios in JAFI with the "non-Zionist" Federation leadership, on the condition that the elected political chairman of the WZO would be accepted as the head of the Agency. Thus, the recent JAFI chairmen were the political leaders elected by the WZO, including Avraham Burg (Labor), Sallai Meridor (Likud) and Zeev Bielski (Kadima).

However, starting a few years ago, pressure began building in both organizations to overhaul this arrangement. From the Jewish Agency's perspective, the downturn in federation funds being directed to Israel as opposed to local needs meant that all JAFI allocations needed to be scrutinized anew. And in this situation of reduced funding, serious conflicts emerged between federation leaders and certain "mega-donors", primarily from the United States, on the one hand, and representatives of the political parties within the WZO, on the other.

And from the WZO's perspective, the fact that the organization was financially dependent on the Jewish Agency meant that important Zionist issues were being pushed aside. For example, the WZO was forced to turn over key elements of its historic agenda, such as "hasbarah" (Israel advocacy), Zionist education and Zionist youth movements to the non-ideological Jewish Agency. In addition, with one head serving both organizations, it was increasingly clear that a disproportionate amount of the chairman's time and energy was spent on JAFI matters to the detriment of the WZO.

Finally, this past June, the WZO and Jewish Agency agreed that the time had come to make the Zionist movement independent again, financially and organizationally. Not only would JAFI funding be phased out but the two organizations would now enjoy independent leadership. The agreement, however, came after the federation leadership championing the split bowed to the will of Prime Minister Benjamin Netanyahu and confirmed his choice, Natan Sharansky, as the new JAFI head. Unlike his predecessors, however, Sharansky does not serve as WZO Chairman.

Remarking on the WZO-JAFI decision, Dr. Stephen S. Wolnek, President of MERCAZ USA, said, "While as an American, I am sympathetic to the feelings that the WZO has been overly politicized, it's important to remember that the only way that the Conservative Movement was included in the decision-making process within the Jewish Agency was by transforming itself 30 years ago into a Zionist political party — MERCAZ — and by learning to play the political game within the WZO.

The Jewish Agency and WZO allocations that come to the institutions of Masorti Judaism in Israel and around the world, currently around $2 million annually, do not come because Conservative Jews are 'good guys' but because we are learning to be more effective in Zionist politics. I am confident that the new relationship between the WZO and Jewish Agency will enhance the functioning of both organizations."

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