| GENERAL STATEMENT REGARDING THE COVID-19 PANDEMIC: |
THE COVID-19 PANDEMIC, WHOSE EFFECTS FIRST BECAME KNOWN IN JANUARY 2020, IS HAVING A BROAD AND NEGATIVE IMPACT ON COMMERCE AND FINANCIAL MARKETS AROUND THE WORLD. THE EXTENT OF THE IMPACT OF COVID-19 ON THE FOUNDATION'S OPERATIONAL AND FINANCIAL PERFORMANCE WILL DEPEND ON CERTAIN DEVELOPMENTS, INCLUDING THE DURATION AND SPREAD OF THE OUTBREAK, WHICH AT PRESENT CANNOT BE DETERMINED. ACCORDINGLY, THE EXTENT TO WHICH COVID-19 MAY IMPACT BIRTHRIGHT'S FINANCIAL POSITION, STATEMENT OF ACTIVITIES, FUNCTIONAL EXPENSES AND CASH FLOWS IS UNCERTAIN. EFFECTIVE MARCH 15, 2020, THE REMAINDER OF THE TRIPS FOR 2020 WERE CANCELED. ALTHOUGH ALTERNATIVE PROGRAMMING SUCH AS VIRTUAL TOURS AND REUNIONS WERE IMPLEMENTED, TOTAL PROGRAM EXPENSES FOR 2020 WERE SIGNIFICANTLY REDUCED AS COMPARED WITH PRIOR YEARS. CONCOMITANTLY, THE FOUNDATION REDUCED ITS' OPERATING EXPENSES BY 24% FROM THE APPROVED BUDGET, OF WHICH 15% WERE PERSONNEL RELATED. DUE TO THE GENEROSITY OF OUR DONORS, THE FOUNDATION CLOSED THE YEAR WITH NEARLY $49 MILLION IN CASH AND CASH EQUIVALENTS, $34 MILLION MORE THAN GENERALLY REQUIRED. THESE ADDITIONAL FUNDS WILL BE USED TO PAY FOR ANTICIPATED DEFICITS OVER THE NEXT SEVERAL YEARS RESULTING FROM INCREASED COVID-19 RELATED TRIP COSTS IN 2021 AS WELL AS REDUCED FUNDRAISING CAPACITY WHILE STAFFING IS BEING REBUILT. |
| FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: |
BIRTHRIGHT ISRAEL SEEKS TO ENSURE THAT EVERY ELIGIBLE YOUNG JEWISH ADULT AROUND THE WORLD, ESPECIALLY THE LESS CONNECTED, IS GIVEN THE OPPORTUNITY TO VISIT ISRAEL ON THIS EDUCATIONAL JOURNEY. BIRTHRIGHT ISRAEL FOUNDATION RAISES FUNDS IN THE UNITED STATES TO SUPPORT BIRTHRIGHT ISRAEL, A PROGRAM WHICH CURRENTLY PROVIDES YOUNG JEWISH ADULTS THE GIFT OF AN EXTRAORDINARY EDUCATIONAL TRIP TO ISRAEL. |
| FORM 990, PART VI, SECTION B, LINE 11B |
THE FORM 990 WAS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM IN CONJUCTION WITH THE ORGANIZATION'S FINANCIAL DEPARTMENT. A COPY OF THE DRAFT FORM 990 WAS CIRCULATED TO THE FULL BOARD OF DIRECTORS FOR DISCUSSION AND COMMENT. EACH BOARD MEMBER WAS PROVIDED AMPLE OPPORTUNITY TO COMMENT ON THE INFORMATION CONTAINED IN THE 990 PRIOR TO ITS FILING WITH THE INTERNAL REVENUE SERVICE. |
| FORM 990, PART VI, SECTION B, LINE 12C |
EACH OFFICER, DIRECTOR, TRUSTEE AND KEY EMPLOYEE OF THE ORGANIZATION IS REQUIRED TO ANNUALLY DISCLOSE ANY CONFLICTS OF INTEREST THAT ARISE BY VIRTUE OF THEIR EMPLOYMENT, BOARD SERVICE, OR POSITION WITH THE ORGANIZATION. THE ORGANIZATION MONITORS COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH AN ANNUAL QUESTIONNAIRE/DISCLOSURE STATEMENT THAT IS DISTRIBUTED TO THESE INDIVIDUALS. POTENTIAL CONFLICTS ARE INVESTIGATED IMMEDIATELY. |
| FORM 990, PART VI, SECTION B, LINE 15 |
THE COMPENSATION OF THE C-SUITE IS REVIEWED ANNUALLY BY THE INDEPENDENT MEMBERS OF THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS WHO RELIED UPON EXTERNAL 3RD PARTY COMPARABLE MARKET DATA IN ASSESSING THE APPROPRIATENESS OF THE TOTAL COMPENSATION TO BE PROVIDED TO THE INCUMBENT. COMPENSATION DECISIONS AND REPORTS ARE CONTEMPORANEOUSLY DOCUMENTED IN THE MINUTES OF THE COMMITTEE MEETING AT THE TIME THE DECISIONS ARE MADE. THE FOUNDATION LAST CONDUCTED AN INDEPENDENT EXECUTIVE COMPENSATION SURVEY IN FEBRUARY 2020. FOR ALL OTHER INDIVIDUALS REPORTED ON THE FORM 990, COMPENSATION DECISIONS ARE REVIEWED INTERNALLY BY THE FOUNDATION'S OFFICERS AND APPROVED BY THE PRESIDENT. |
| FORM 990, PART VI, SECTION C, LINE 19 |
THE FOUNDATION MAKES ITS FORM 990 AVAILABLE BY RETAINING A COPY AT ITS PLACE OF BUSINESS. THE FORM 990 IS LIKEWISE PUBLISHED ON THE INTERNET AT WWW.GUIDESTAR.ORG. THE ORGANIZATION'S 990, FINANCIAL STATEMENTS, RECORD RETENTION AND DESTRUCTION POLICY ARE PUBLISHED ON THE ORGANIZATION'S WEBSITE. THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT ORDINARILY MADE AVAILABLE TO THE PUBLIC, BUT, IF REQUESTED, WILL BE PROVIDED AT MANAGEMENT'S DISCRETION. |
| FORM 990, PART XI, LINE 9: |
CHANGE IN DONOR INTENT -3,000,000. |
| IN 2018, A DONOR MADE A $5 MILLION COMMITMENT TO THE FOUNDATION TO BE PAID |
OVER FIVE YEARS. $2 MILLION OF THIS COMMITMENT HAS BEEN PAID. DURING 2020, THE DONOR INFORMED THE FOUNDATION THAT ALTHOUGH HE INTENDED TO FULFILL HIS REMAINING $3 MILLION COMMITMENT TO SUPPORT THE BIRTHRIGHT ISRAEL PROGRAM, THE FUNDS WOULD BE DIRECTED THROUGH A DIFFERENT ORGANIZATION. AS A RESULT, THE REMAINING $3 MILLION CONTRIBUTION RECEIVABLE HAS BEEN REMOVED FROM RECEIVABLES AND RECORDED AS CHANGE IN DONOR INTENT ON THE STATEMENT OF ACTIVITIES. |
Attach to Form 990 or 990-EZ.