JEWISH AGENCY FOR ISRAEL

BOARD OF GOVERNORS

November 2008         Heshvan 5769

RESOLUTION

2009 Budget

(January 1, 2009 – December 31, 2009)

Approval of the 2009 Budget (January 1, 2009 – December 31, 2009)

Whereas the Jewish Agency for Israel ("JAFI") Budget for 2009 has been prepared in response to circumstances including the volatility of the shekel-dollar exchange rate and the fact that the budget lines of the budget are in dollars; and

Whereas recent and ongoing economic decline in the United States, Keren Hayesod countries and Israel has created greater uncertainty as to the revenue to be received for core operations of  JAFI for 2009;

Therefore, be it resolved as follows:

1.       (a)   The budget for operating activities of JAFI for the Fiscal Year January 1, 2009 through December 31, 2009, as presented in the proposed budget attached hereto as amended by increasing the budget by $1M for Birthright and decreasing the amount in the line "Adjustments outstanding pending discussions with Government" from $8M to $9M, in the aggregate amount of $301.5M for unrestricted activities is hereby approved. The level of unrestricted funding may be adjusted following receipt of program participation fees not as yet budgeted.

(b)    The amount of the JAFI Validated needs not funded by core is $63.4M.

(c)  The amount of the budget for development activities of JAFI for the Fiscal Year, as presented in the proposed budget attached hereto, is in the aggregate amount of $17.5M for unrestricted development activities, $8.0M for designated development activities.

(d)   The Director General or the Director General of the Finance Department is authorized to approve payments due to employees' retirements, above the amounts budgeted in Fiscal Year 2009. The Director-General or the Director General of the Finance Department, shall exercise this authority subject to the provisions of Article VI.A.2.(c) of the By-Laws.

2.       To direct the Director General and the Director General of the Finance Department to put in place a mechanism to control spending and financial commitments in order to protect JAFI's ability to comply with Budget revisions as may occur from time to time during 2009, and to report to the Budget and Finance Committee on a quarterly basis on outstanding financial commitments.

3.       As the 2009 Budget Year covers two school years: September 2008 – August 2009 and September 2009 – August 2010, and due to the high fluctuation in the economic parameters, no new financial commitments may be made regarding any program budgeted on a school year basis, for the   2009 - 2010 school year without the prior approval of the JAFI Executive. This decision shall be reviewed by the Board of Governors in February 2009.

4.       To direct the Budget and Finance Committee to review the Budget on an ongoing basis, with the first review to occur not later than February 2009 and, if necessary, to bring to the Board of Governors proposals to amend the Budget based on updated projections for revenue.

5.       Due to the above-mentioned volatility of the shekel-dollar exchange rate and the fact that all budget lines are in dollars, in the event that the actual exchange rate is higher than the JAFI budgetary exchange rate of 3.9 NIS/$, all budget lines for expenditure in shekels, will be utilized in an amount in shekels up to and not more than the amount allocated in dollars, multiplied by 3.9. Any surplus generated as a result of the above circumstances will be re-allocated by decision of the Board of Governors.

6.       JAFI may, during the Fiscal Year, renew existing Financial Commitments which shall mature during the fiscal year, and borrow additional sums as interim financing, so that at the end of the Fiscal Year the accumulated deficit will not exceed the total accumulated deficit at the beginning of the year.

"Financial Commitment" shall mean any loan, guarantee, indemnity or any other financial transaction and any document evidencing or constituting such financial commitment.