Monday, March 16, 2015
UJA Federation Charities Scramble to Address FEGS Closure
When Federation and Employment Guidance Services announced a month ago that it planned to close amid a $20 million revenue shortfall, the nonprofit world was shocked.
But the ruinous series of decisions that wrecked FEGS—a health and human services nonprofit that has long been one of New York’s largest, most well-regarded social services organizations—was years in the making.
FEGS is responsible for running hundreds of city and state social-service programs—but also political, raising questions about how a host of well-connected directors, regulatory entities and elected officials failed to see the disaster coming.
Groups associated under the UJA Federation of charities have already picked up a slice of the charity's 172 different programs, but according to Jewish Week, more than 100 different programs are still without a future operator....