Nonprofit Growth Spurt: NY Social Services Agency Adopts $75M in FEGS Programs

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June 3, 2015; JTA

Tomorrow, the Nonprofit Quarterly will run an interview with David Rivel, the CEO of New York’s Jewish Board of Children and Family Services. That agency, already one of the city’s largest, was asked, after FEGS declared bankruptcy, to take on $75 million dollars of state contracted programs. With that, the Jewish Board became the largest social service agency in the city, replacing FEGS, which had a $250 million budget.

As NPQ has reported previously, the problems at FEGS seemed to emerge overnight, at least to those outside the agency. Among the possible trouble spots were lots of unused leased space, overinvestment in a social enterprise, and administrative costs too high for the agency. An autopsy on FEGS is being undertaken by a special commission, so we will eventually know much more about how that failure occurred, but meanwhile NPQ has an interest in what was done in an organizational adoption as massive as this one. What were the considerations? Tune in for that tomorrow.—Ruth McCambridge