COMBINED FINANCIAL STATEMENTS

NEW ISRAEL FUND SIGNING ANEW FOR THE YEAR ENDED DECEMBER 31, 2007 WITH SUMMARIZED FINANCIAL INFORMATION FOR 2006

NEW ISRAEL FUND SIGNING ANEW

CONTENTS

PAGE NO. INDEPENDENT AUDITORS' REPORT EXHIBIT A -

EXHIBIT B -

EXHIBIT C -

2

Combined Statement of Financial Position, as of December 31, 2007, with Summarized Financial Information for 2006

3-4

Combined Schedule of Activities and Change in Net Assets for the Year Ended December 31, 2007, with Summarized Financial Information for 2006

5

Combined Statement of Cash Flows, for the Year Ended December 31, 2007, with Summarized Financial Information for 2006

6-7

NOTES TO COMBINED FINANCIAL STATEMENTS INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL FINANCIAL INFORMATION

8 - 15 16

SCHEDULE 1 - Combining Schedule of Financial Position, for the Year Ended December 31, 2007

17 - 18

SCHEDULE 2 - Combining Schedule of Activities, for the Year Ended December 31, 2007

19

SCHEDULE 3 - Combining Schedule of Change in Net Assets, for the Year Ended December 31, 2007

20

SCHEDULE 4 - Combined Schedule of Grants, for the Year Ended December 31, 2007

21 - 29

SCHEDULE 5 - Combined Schedule of Projects, for the Year Ended December 31, 2007

30

SCHEDULE 6 - Combined Schedule of Functional Expenses, for the Year Ended December 31, 2007

31 - 32

1

GELMAN, ROSENBERG & FREEDMAN CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITORS' REPORT

To the Board of Directors New Israel Fund Signing Anew Washington, D.C. We have audited the accompanying combined statement of financial position of New Israel Fund and Signing Anew as of December 31, 2007, and the related combined statements of activities and change in net assets and cash flows for the year then ended. These combined financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of the New Israel Fund-Israel office, located in Jerusalem, Israel, which reflect total assets of $3,776,085, total revenue of $3,238,435 and total expenses of $1,967,428, and Signing Anew, an affiliate, which statements reflect total assets of $1,432,904, total revenue of $608,468 and total expenses of $332,512. Those statements were audited by other auditors, whose reports dated May 10, 2007 expressed an unqualified opinion. To the extent that it relates to the amounts included for the foreign programs, our opinion is based solely on the report of other auditors. The prior year summarized comparative information has been derived from the 2006 financial statements and, in our report dated June 25, 2008, we expressed an unqualified opinion on those statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the combined financial position of New Israel Fund and Signing Anew as of December 31, 2007, and their combined change in net assets and their combined cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

August 27, 2008 4550 MONTGOMERY AVENUE · SUITE 650 NORTH · BETHESDA, MARYLAND 20814 (301) 951-9090 · FAX (301) 951-3570 · WWW.GRFCPA.COM ___________________________ MEMBER OF CPAMERICA INTERNATIONAL, AN AFFILIATE OF HORWATH INTERNATIONAL MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' PRIVATE COMPANIES PRACTICE SECTION

2

NEW ISRAEL FUND SIGNING ANEW COMBINED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2007 WITH SUMMARIZED FINANCIAL INFORMATION FOR 2006

ASSETS 2007

2006

CURRENT ASSETS Cash and cash equivalents Investments (Note 2) Prepaid expenses Pledges receivable, current portion, net of allowance for doubtful account of $66,471 and $132,760 respectively (Note 3) Advances Accounts receivable Inventory Total current assets

$ 13,151,032 18,500,621 89,246

$

9,823,194 20,076,486 93,025

2,761,100 5,261 267,430 1,490

2,727,069 17,061 234,484 1,490

34,776,180

32,972,809

1,662,599 157,193

1,550,728 157,193

1,819,792 (1,280,870)

1,707,921 (1,165,318)

FURNITURE, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Furniture and equipment Leasehold improvements Less: Accumulated depreciation and amortization Net furniture, equipment and leasehold improvements

538,922

542,603

826,213 6,995 96,282

1,010,464 6,995 95,488

929,490

1,112,947

$ 36,244,592

$ 34,628,359

OTHER ASSETS Pledges receivable, net of current portion (Note 3) Deposits Assets held in charitable trust (Note 4) Total other assets TOTAL ASSETS

See accompanying notes to combined financial statements.

3

EXHIBIT A

LIABILITIES AND NET ASSETS 2007

2006

CURRENT LIABILITIES Accounts payable and accrued liabilities Grants payable Liability under trust agreement, current (Note 4) Annuities payable, current portion (Note 5)

Total current liabilities

$

1,840,719 7,402,157 11,685 37,537

$

1,405,923 5,859,352 11,685 37,357

9,292,098

7,314,317

104,072 320,047

122,431 314,701

424,119

437,132

9,716,217

7,751,449

3,430,177 16,373,231 6,724,967

3,406,012 17,178,527 6,292,371

26,528,375

26,876,910

$ 36,244,592

$ 34,628,359

LONG-TERM LIABILITIES Deferred rent abatement Annuities payable, non-current (Note 5) Total long-term liabilities Total liabilities NET ASSETS Unrestricted Temporarily restricted (Note 6) Permanently restricted (Note 8) Total net assets

TOTAL LIABILITIES AND NET ASSETS

See accompanying notes to combined financial statements.

4

EXHIBIT B NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF ACTIVITIES AND CHANGE IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2007 WITH SUMMARIZED FINANCIAL INFORMATION FOR 2006

Unrestricted

2007 Temporarily Permanently Restricted Restricted

2006 Total

Total

$ 19,478,102 10,556,819 1,409,930 144,553 54,088 106,110

$ 20,153,544 7,979,972 1,721,452 50,883 147,660

REVENUE Contributions: General support Donor-advised Investment income (Note 2) Program revenue In-kind contributions (Note 10) Other revenue Net assets released from donor restrictions (Note 7)

$ 11,061,234 $ 9,866,842 (27,562) 144,553 54,088 106,110

7,984,272 689,977 1,437,492 -

10,917,037

(10,917,037)

32,122,302

(805,296)

432,596

31,749,602

30,053,511

16,493,251

-

-

16,493,251

15,120,611

8,077,382

-

-

8,077,382

5,647,028

24,570,633

-

-

24,570,633

20,767,639

Grant Management Educational Activities

987,043 2,206,081

-

-

987,043 2,206,081

692,893 1,649,670

Total program services

27,763,757

-

-

27,763,757

23,110,202

1,776,949 2,557,431

-

-

1,776,949 2,557,431

1,882,468 2,706,887

Total supporting services

4,334,380

-

-

4,334,380

4,589,355

Total expenses

32,098,137

-

-

32,098,137

27,699,557

(805,296)

432,596

Total revenue

$

432,596 -

-

-

EXPENSES Program Services: Grants and Projects: Grants to Israel Not-ForProfit Organizations Grants to New Israel Fund Projects Total grants and projects

Supporting Services: Management and General Fundraising

Change in net assets

24,165

Net assets at beginning of year NET ASSETS AT END OF YEAR

$

(348,535)

2,353,954

3,406,012

17,178,527

6,292,371

26,876,910

24,522,956

3,430,177

$ 16,373,231

$ 6,724,967

$ 26,528,375

$ 26,876,910

See accompanying notes to combined financial statements.

5

EXHIBIT C NEW ISRAEL FUND SIGNING ANEW COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2007 WITH SUMMARIZED FINANCIAL INFORMATION FOR 2006

2007

2006

CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets

$

(348,535) $ 2,353,954

Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation and amortization Unrealized loss (gain) on investments Realized gain on investments Donated stock (Gain) loss on disposal of equipment Proceeds from sale of equipment Bad debt expense Contributions restricted for long term investments (Increase) decrease in: Prepaid expenses Pledges receivable Advances Accounts receivable Deposits Assets held in charitable trust Increase (decrease) in: Accounts payable and accrued liabilities Grants payable Deferred rent abatement Liability under trust agreement Annuities payable Net cash provided (used) by operating activities

178,386 358,550 (721,780) (3,013) (1,297) 25,626 (66,343) (432,596)

194,199 (605,470) (264,041) (359,836) 76,788 100,500 (56,571)

3,779 11,800 (32,946) 794

(47,368) (1,672,059) (9,592) (126,553) (2,070) 2,835

434,795 1,542,805 (18,359) 226,027 (5,526)

122,443 (1,116,150) (12,059) (50,816)

1,152,167

(1,471,866)

(199,033) (1,023,755) 2,965,863 -

(229,977) (2,174,866) 4,265,524 (17,041)

1,743,075

1,843,640

432,596

56,571

432,596

56,571

CASH FLOWS FROM INVESTING ACTIVITIES Purchases of furniture and equipment Purchase of investments Proceeds from sale investments Proceeds from sale of furniture and equipment Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Contributions restricted for long-term investments Net cash provided by financing activities

See accompanying notes to combined financial statements.

6

EXHIBIT C NEW ISRAEL FUND SIGNING ANEW COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2007 WITH SUMMARIZED FINANCIAL INFORMATION FOR 2006

2007 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year CASH AND CASH EQUIVALENTS AT END OF YEAR

$

3,327,838

2006 $

428,345

9,823,194

9,394,849

$ 13,151,032

$ 9,823,194

See accompanying notes to combined financial statements.

7

NEW ISRAEL FUND SIGNING ANEW NOTES TO COMBINED FINANCIAL STATEMENTS DECEMBER 31, 2007

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION Organization The New Israel Fund (the Fund) is a publicly-supported not-for-profit organization whose purpose is to provide grants and technical assistance to organizations in Israel that are dedicated to strengthening democracy and achieving positive social change in Israel and to provide public education in North America and Israel in support of these goals. The Fund has established an office in Israel. Included in the accompanying financial statements are the amounts from financial statements for the New Israel Fund - Israel office that were audited by other auditors whose reports have been furnished to us. At December 31, 2007, the audited financial statements of the New Israel Fund - Israel office have been combined with the accounts of the New Israel Fund. All significant intercompany transactions have been eliminated. Signing Anew, an affiliate, is a public institution whose goals include the creation of an educational and ethical value change in the State of Israel, assistance to recognized educational bodies to further their work, and to reduce the educational gaps in Israeli society. The New Israel Fund and Signing Anew have related Board members such that the New Israel Fund has oversight of Signing Anew. At December 31, 2007, the audited financial statements of Signing Anew have been combined with the accounts of the New Israel Fund. All significant intercompany transactions have been eliminated. Basis of presentation The accompanying financial statements have been prepared on a combining basis for the year ended December 31, 2007, and include the assets, liabilities, net assets, support, revenue, gains, expenses and losses of New Israel Fund - U.S. office, New Israel Fund - Israel office, and Signing Anew. All intercompany transactions have been eliminated during combination. The Organizations' combined financial statements have been prepared using the the accrual basis of accounting. As such, revenue is recognized when earned and expenses when incurred. The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the organization's financial statements for the year ended December 31, 2006, from which the summarized information was derived. Cash and cash equivalents Cash and cash equivalents include cash on hand and other highly liquid instruments with maturities of less than three months. At times during the year, the Fund and Signing Anew maintain cash balances at financial institutions in excess of the Federal Deposit Insurance Corporation (FDIC) limits. The Fund has an agreement with the financial institutions whereby excess cash deposits are reinvested in a repurchase agreement of government securities on an overnight basis. Management believes the risk in these situations to be minimal. 8

NEW ISRAEL FUND SIGNING ANEW NOTES TO COMBINED FINANCIAL STATEMENTS DECEMBER 31, 2007

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION (Continued) Foreign operations The financial statements include the New Israel Fund - Israel office and Signing Anew. The accounting records are maintained in the functional currency of the foreign country, which is the Israeli Shekel. Assets and liabilities denominated in the functional currency are converted into U.S. dollars at year-end exchange rates, and revenue and expense accounts are translated at the average rates in effect during the year. Exchange gains and losses are reported in the Combining Schedule of Activities. Grant expenses Grants are recorded as expenses and liabilities at the time the Board approves the specific grant. Furniture, equipment and leasehold improvements Furniture and equipment costing in excess of $1,000 are capitalized and depreciated over the life of the asset ranging from three to seven years. Leasehold improvements are capitalized and amortized over the life of the lease. Pledges receivable Outstanding pledges at December 31, 2007 are for the general support of the organization and for donor-advised gifts. Management has established an allowance for doubtful accounts in the amount of $66,471 at December 31, 2007. Accounts receivable Accounts receivable are stated at their net realizable value. Management considers all accounts to be collectible. Inventory Inventory, consisting of books, videotapes, brochures and other resource materials held for resale, is stated at the lower of cost or net realized value. Cost is determined on the first-in, firstout basis. Investments Investments are presented in the financial statements at their fair market value. Interest and dividend income is recorded as revenue when earned. Realized and unrealized gains and losses from investments are reflected in the Combining Schedule of Activities.

9

NEW ISRAEL FUND SIGNING ANEW NOTES TO COMBINED FINANCIAL STATEMENTS DECEMBER 31, 2007

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION (Continued) Net asset classification The net assets are reported in three self-balancing groups as follows: · Unrestricted net assets include unrestricted revenue and contributions received without donor-imposed restrictions. These net assets are available for the operation of the Organizations and include designated and board designated funds. · Temporarily restricted net assets include revenue and contributions subject to donorimposed stipulations that will be met by the actions of the Organizations and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Combining Schedule of Activities as net assets released from restrictions. · Permanently restricted net assets represent funds restricted by the donor to be maintained in-perpetuity by the Organizations. Income taxes The Fund is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes has been made in the accompanying financial statements. The Fund is not a private foundation. Signing Anew is registered as an Amuta (Association) under the provisions of the Law of Amutot (Association). The Amuta is classified as a public institution pursuant to Section 9(2) of the Income Tax Ordinance. In February 1999 the Amuta received status from the Israel Income Tax Authorities, under Article 46(A), such that contributions made to it entitle the contributor to certain tax credits as determined by law. Contributions Contributions are recorded as revenue in the year notification is received from the donor. Contributions are recognized as unrestricted support only to the extent of actual expenses incurred in compliance with the donor-imposed restrictions and satisfaction of time restrictions. Contributions received in excess of expenses incurred are shown as temporarily restricted net assets in the accompanying combined financial statements. Contributions with donor-imposed restrictions that are met in the same accounting period are reported as unrestricted net assets. Functional allocation of expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the Combining Schedule of Activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

10

NEW ISRAEL FUND SIGNING ANEW NOTES TO COMBINED FINANCIAL STATEMENTS DECEMBER 31, 2007

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION (Continued) Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

2.

INVESTMENTS The investments are recorded at market value. Investments at December 31, 2007 are as follows: Money market funds Mutual funds Securities Government bonds

$

249,318 8,986,054 2,232,277 7,032,972

$ 18,500,621 Investment income for the year ended December 31, 2007 is as follows: Unrealized loss Realized gain Interest and dividends

3.

$

(358,550) 721,780 1,046,700

$

1,409,930

PLEDGES RECEIVABLE Pledges receivable at December 31, 2007 are comprised of the following: General support Donor-advised and special projects

$

2,897,282 690,031

$

3,587,313

Pledges that are long-term have been discounted using an interest rate of 6%. Following is a summary of maturities of pledges receivable at December 31, 2007: Year Ended December 31, 2008 2009 2010

$

2,761,100 474,368 351,845

$

3,587,313 11

NEW ISRAEL FUND SIGNING ANEW NOTES TO COMBINED FINANCIAL STATEMENTS DECEMBER 31, 2007

4.

CHARITABLE REMAINDER TRUST The Fund was named the trustee and remainderman of a charitable remainder annuity trust. Under the terms of the trust, the Fund is required to pay an annual annuity of $6,300 to the income beneficiaries for their lives. For the year ended December 31, 2007, the asset held in trust was $96,282 and the liability based on the trust agreement was $11,685, which was recorded as a current liability.

5.

ANNUITIES PAYABLE In 1996, the Fund established a charitable gift annuity with a market value of $39,263. In return, the Fund has agreed to pay the donor an annual annuity totaling $2,631. At December 31, 2007, the present value of the annuity is $20,584, of which $1,732 is recorded as a current liability and $18,852 is recorded as a long-term liability. In 1997, the Fund established two charitable gift annuities with a market value totaling $26,091. In return, the Fund has agreed to pay the donors annual annuities totaling $1,905. At December 31, 2007, the present value of the annuities is $14,158 of which $1,289 is recorded as a current liability and $12,869 is recorded as a long-term liability. In 1998, the Fund established four charitable gift annuities with a market value totaling $158,056. In return, the Fund has agreed to pay the donors annual annuities totaling $13,714. At December 31, 2007, the present value of the annuities is $69,325, of which $10,775 is recorded as a current liability and $58,550 is recorded as a long-term liability. In 1999, the Fund established four charitable gift annuities with a market value totaling $50,541. In return, the Fund has agreed to pay the donors annual annuities totaling $3,934. At December 31, 2007, the present value of the annuities was $26,661, of which $2,780 is recorded as a current liability and $23,881 is recorded as a long-term liability. In 2000, the Fund established two charitable gift annuities with a market value totaling $50,992. In return, the Fund has agreed to pay the donors annual annuities totaling $3,878. At December 31, 2007, the present value of the annuities was $29,455, of which $2,596 is recorded as a current liability and $26,859 is recorded as a long-term liability. In 2003, the Fund established three charitable gift annuities with a market value totaling $22,254. In return, the Fund has agreed to pay the donors annual annuities totaling $4,185. At December 31, 2007, the present value of the annuities is $22,254, of which $3,237 is recorded as a current liability and $19,017 is recorded as a long-term liability. In 2004, the Fund established three charitable gift annuities with a market value totaling $171,714. In return, the Fund has agreed to pay the donors annual annuities totaling $13,079. At December 31, 2007 the present value of the annuities is $100,293, of which $8,711 is recorded as a current liability and $91,582 is recorded as a long-term liability. In 2006, the Fund established two charitable gift annuities with a market value totaling $106,025. In return, the Fund has agreed to pay the donors annual annuities totaling $9,250. At December 31, 2007 the present value of the annuities is 69,327, of which $6,236 is recorded as a current liability and $63,091 is recorded as a long-term liability. 12

NEW ISRAEL FUND SIGNING ANEW NOTES TO COMBINED FINANCIAL STATEMENTS DECEMBER 31, 2007

5.

ANNUITIES PAYABLE (Continued) In 2007, the Fund established one charitable gift annuity with a market value totaling $10,402. In return, the Fund has agreed to pay the donor annual annuities totaling $2,580. At December 31, 2007 the present value of the annuity is $5,527, of which $181 is recorded as a current liability and $5,346 is recorded as a long-term liability.

6.

TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets consisted of the following at December 31, 2007: Contributions and pledges - NIF-U.S. Programs and projects - NIF-U.S. Programs and projects - NIF-Israel Programs and projects - Signing Anew

$

3,572,452 8,142,299 3,524,334 1,134,146

$ 16,373,231

7.

NET ASSETS RELEASED FROM RESTRICTIONS The following temporarily restricted net assets were released from donor restrictions by incurring expenses which satisfied the restricted purposes specified by the donors: Contributions - NIF-U.S. Programs and projects Contributions - NIF-Israel Restricted contributions - Signing Anew

$

2,388,261 7,141,384 882,495 504,897

$ 10,917,037

8.

PERMANENTLY RESTRICTED NET ASSETS At December 31, 2007, permanently restricted net assets are restricted to investment in perpetuity, the income from which is expendable to support the following: SHATIL Association for Civil Rights in Israel Ford Endowment Fund Grants and projects

9.

$

1,000,000 1,130,815 2,000,000 2,594,152

$

6,724,967

LEASE COMMITMENTS The Fund entered into an office lease in Washington, D.C., commencing March 20, 2000 and expiring March 31, 2011. The lease agreement specified that annual rent will be $264,137 per year with an annual adjustment agreed upon by both parties and stipulated in the lease agreement. 13

NEW ISRAEL FUND SIGNING ANEW NOTES TO COMBINED FINANCIAL STATEMENTS DECEMBER 31, 2007

9.

LEASE COMMITMENTS (Continued) The Fund entered into an office lease in New York, New York, commencing on February 1, 2004 and expiring January 31, 2015. The lease agreement specified that annual rent will be $62,400 per year with an annual adjustment agreed upon by both parties and stipulated in the lease agreement. The Fund entered into an office lease in San Francisco, California, commencing on April 1, 2006 and expiring March 31, 2009. The lease agreement specified that annual rent will be $1,939 per month Future minimum lease payments are as follows: Year Ended December 31, 2008 2009 2010 2011 2012 Thereafter

$

420,143 416,332 418,680 165,294 167,285 283,570

$

1,871,304

Rent expense for office space, including escalation and maintenance charges, was $363,649 in 2007. The Fund entered into a sublease agreement in 2003. The future minimum sublease payments to be received are as follows: Year Ended December 31, 2008 2009 2010 2011

10.

$

104,990 107,090 109,232 27,442

$

348,754

IN-KIND CONTRIBUTIONS In-kind contributions consist of tuition fellowships of the Washington College of Law at the American University as part of the Israel-U.S. Civil Liberties Law Program.

11.

PENSION PLAN NIF-US has a company-paid 401(a) money purchase plan. After a two-year vesting period, employees accrue five percent of their salary that is tax free until withdrawn. The actual percentage can be changed, based on the financial results each year, and is approved by the Board of Directors. Pension expense for the year ended December 31, 2007 was $86,970. 14

NEW ISRAEL FUND SIGNING ANEW NOTES TO COMBINED FINANCIAL STATEMENTS DECEMBER 31, 2007

11.

PENSION PLAN (Continued) NIF-Israel has recorded a liability reflecting the difference between the total obligation for severance pay less the amounts that have been deposited in pension and provident funds and management insurance policies. The designated funds reflect amounts deposited in a central severance pay fund. The balance presented in the NIF-Israel balance sheet is the difference between the liability and the amounts deposited in the central severance pay fund, and reflects the amount NIF-Israel needs to cover from its own sources for severance pay. NIF-Israel has an accrued severance liability of $191,806 payable to the director in Israel upon termination of employment.

15

GELMAN, ROSENBERG & FREEDMAN CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL FINANCIAL INFORMATION

To the Board of Directors New Israel Fund Signing Anew Washington, D.C. Our report on our audit of the basic combined financial statements of the New Israel Fund and Signing Anew as of December 31, 2007 appears on page 2. The audit was made for the purpose of forming an opinion on the basic combined financial statements taken as a whole. The information contained in Schedules 1 through 6 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic combined financial statements and in our opinion, is fairly stated in all material respects in relation to the basic combined financial statements taken as a whole.

August 27, 2008

4550 MONTGOMERY AVENUE · SUITE 650 NORTH · BETHESDA, MARYLAND 20814 (301) 951-9090 · FAX (301) 951-3570 · WWW.GRFCPA.COM ___________________________ MEMBER OF CPAMERICA INTERNATIONAL, AN AFFILIATE OF HORWATH INTERNATIONAL MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' PRIVATE COMPANIES PRACTICE SECTION

16

NEW ISRAEL FUND SIGNING ANEW COMBINING SCHEDULE OF FINANCIAL POSITION AS OF DECEMBER 31, 2007

ASSETS

New Israel New Israel Fund Total New Fund - U.S. Israel Office Israel Fund

Signing Anew

Eliminations Combined

CURRENT ASSETS Cash and cash equivalents Investments Prepaid expenses Pledges receivable Advances Accounts receivable Intercompany/affiliate receivable Inventory Total current assets

$ 11,222,637 $ 1,606,588 $ 12,829,225 $ 16,536,539 1,064,142 17,600,681 89,246 89,246 2,679,768 81,332 2,761,100 5,261 5,261 1,233 57,383 58,616 -

321,807 $ 899,940 208,814

-

$ 13,151,032 18,500,621 89,246 2,761,100 5,261 267,430

575,373 -

575,373 -

1,490

(575,373) -

1,490

30,534,684

3,384,818

33,919,502

1,432,051

(575,373)

34,776,180

429,170 157,193

1,232,576 -

1,661,746 157,193

853 -

-

1,662,599 157,193

586,363

1,232,576

1,818,939

853

-

1,819,792

-

-

(1,280,870)

FURNITURE, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Furniture and equipment Leasehold improvements Less: Accumulated depreciation and amortization Net furniture, equipment and leasehold improvements

(439,561)

(841,309)

(1,280,870)

146,802

391,267

538,069

853

-

538,922

826,213 6,995

-

826,213 6,995

-

-

826,213 6,995

96,282

-

96,282

-

-

96,282

929,490

-

929,490

-

-

929,490

OTHER ASSETS Pledges receivable Deposits Assets held in charitable trust Total other assets TOTAL ASSETS

$ 31,610,976 $ 3,776,085 $ 35,387,061 $ 1,432,904 $

(575,373) $ 36,244,592

17

SCHEDULE 1

LIABILITIES AND NET ASSETS New Israel New Israel Fund Total New Fund - U.S. Israel Office Israel Fund

Signing Anew

Eliminations Combined

CURRENT LIABILITIES Accounts payable and accrued liabilities Grants payable Intercompany/affiliate payable Liability under trust agreement, current Annuities payable Total current liabilities

$

290,279 $ 1,467,673 $ 1,757,952 $ 7,402,157 7,402,157

88,844 $ -

(6,077) $ 1,840,719 7,402,157

526,399

-

526,399

42,897

(569,296)

-

11,685 37,537

-

11,685 37,537

-

-

11,685 37,537

131,741

(575,373)

8,268,057

1,467,673

9,735,730

9,292,098

LONG-TERM LIABILITIES Deferred rent abatement Annuity payable Total long-term liabilities Total liabilities

104,072 320,047

-

104,072 320,047

-

-

104,072 320,047

424,119

-

424,119

-

-

424,119

10,159,849

131,741

(575,373)

9,716,217

(1,321,278) 3,263,160 3,629,690 15,239,085 6,724,967

167,017 1,134,146 -

-

3,430,177 16,373,231 6,724,967

1,301,163

-

26,528,375

8,692,176

1,467,673

NET ASSETS Unrestricted Temporarily restricted Permanently restricted Total net assets

4,584,438 11,609,395 6,724,967 22,918,800

2,308,412

25,227,212

TOTAL LIABILITIES AND NET ASSETS $ 31,610,976 $ 3,776,085 $ 35,387,061 $ 1,432,904 $

(575,373) $ 36,244,592

18

SCHEDULE 2 NEW ISRAEL FUND SIGNING ANEW COMBINING SCHEDULE OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2007

New Israel New Israel Fund - Israel Total New Fund - U.S. Office Israel Fund

Signing Anew

Eliminations

Total

UNRESTRICTED REVENUE Contributions: General support Donor-advised Income to Israel Investment income Program revenue In-kind contributions Other revenue Net assets released from donor restrictions Total unrestricted revenue EXPENSES Change in unrestricted net assets

$ 9,698,827 $ 1,277,454 $ 10,976,281 $ 9,866,842 9,866,842 4,293,295 4,293,295 (44,207) (44,207) 144,553 144,553 54,088 54,088 101,491 101,491

84,953 $ $ 11,061,234 9,866,842 (4,293,295) 16,645 (27,562) 144,553 54,088 4,619 106,110

9,529,645

19,101,679

28,631,324

504,897

(18,219,184)

10,917,037

29,249,748

24,773,919

54,023,667

611,114

(22,512,479)

32,122,302

29,798,197

24,274,907

54,073,104

537,512

(22,512,479)

32,098,137

(548,449)

499,012

(49,437)

73,602

-

24,165

TEMPORARILY RESTRICTED REVENUE Contributions: General support Donor-advised Investment income Net assets released from donor restrictions Change in temporarily restricted net assets

5,882,828 689,977 1,177,195

19,764,748 108,926

25,647,576 689,977 1,286,121

(9,529,645) (19,101,679) (28,631,324) (1,779,645)

771,995

(1,007,650)

555,880 151,371

(18,219,184) -

7,984,272 689,977 1,437,492

(504,897)

18,219,184

(10,917,037)

202,354

-

(805,296)

PERMANENTLY RESTRICTED REVENUE Contributions Change in permanently restricted net assets CHANGE IN NET ASSETS

432,596

-

432,596

-

-

432,596

432,596

-

432,596

-

-

432,596

$ (1,895,498) $ 1,271,007 $

(624,491) $

275,956 $

-

$

19

(348,535)

SCHEDULE 3 NEW ISRAEL FUND SIGNING ANEW COMBINING SCHEDULE OF CHANGE IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2007

New Israel New Israel Fund Total New Fund - U.S. Israel Office Israel Fund

Signing Anew

Eliminations

Total

UNRESTRICTED NET ASSETS Net assets at beginning of year $ 5,132,887 $ (1,820,290) $ 3,312,597 $ Change in unrestricted net assets (548,449) 499,012 (49,437)

93,415 $

-

$ 3,406,012

73,602

-

24,165

$ 4,584,438 $ (1,321,278) $ 3,263,160 $ 167,017 $

-

$ 3,430,177

Net assets at beginning of year $ 13,389,040 $ 2,857,695 $ 16,246,735 $ 931,792 $ Change in temporarily restricted net assets (1,779,645) 771,995 (1,007,650) 202,354

-

$17,178,527

UNRESTRICTED NET ASSETS AT END OF YEAR

TEMPORARILY RESTRICTED NET ASSETS

TEMPORARILY RESTRICTED NET ASSETS AT END OF YEAR

$ 11,609,395 $ 3,629,690 $ 15,239,085 $ 1,134,146 $

-

(805,296)

-

$16,373,231

-

$ 6,292,371

-

432,596

PERMANENTLY RESTRICTED NET ASSETS Net assets at beginning of year $ 6,292,371 $ Change in permanently restricted net assets 432,596

-

$ 6,292,371 $ 432,596

-

$

-

PERMANENTLY RESTRICTED NET ASSETS AT END OF YEAR

$ 6,724,967 $

$

-

$ 6,724,967

TOTAL NET ASSETS AT END OF YEAR

$ 22,918,800 $ 2,308,412 $ 25,227,212 $ 1,301,163 $

-

$26,528,375

-

$ 6,724,967 $

-

20

SCHEDULE 4 NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name 12 Heshvan: Promoting Tolerance in an Orthodox Context A New Way Abraham Fund Initiatives Absopption of Immigrants from the Caucasus Region Access Israel Adalah: Legal Center for Arab Minority Rights in Israel Adam Institute for Democracy & Peace Adam TevaV'Din: Israel Union for Environmental Defense Addar-Association for Developing the Old City Ramla Adva Center Afaq-Almothalat - Association for Research and Development African Refugees Development Center Agenda: The Israeli Center for Strategic Communication Al-Ahali Association Al-Amar Al-Anwar Association for Advancing the Women in Um Al Fahim Al-Jamahir: Association for the Social Advancement of the Arab-Bedouin-Jewish Sector Al-Rabbata: League for the Arabs of Jaffa Al-Siwar: Arab Feminist Movement in Support of Victims of Sexual Violence Al-Syndianah Association Al-Taj for Health and Heritage Al-Yater Association for Promoting Culture and Social Development Al-Zahraa:Organization for Women Aljana-Center for Cultural and Social Development Alma Teachers College Alternative Voice in the Galilee Amutah Moshe Hess Arab Association for Human Rights Arab Center for Alternative Planning Arab Center for Policy and Law Arab Forum for Sexuality Arab Psychological Association Israel Association for Advancement of the Ethiopian Family and Child (Almaya) Association for the Advancement of Community Centers in Israel Association for Arab Youth Association for Art in the Community & Cross-Cultural Dialog

Grants Payable 12/31/2006 $

30,000 37,500 27,226 214,500 17,500 125 55,000 4,000 3,000 40,000 -

Grant Authorized $

50,000 20,136 8,373 76,000 15,392 105,396 30,054 37,261 6,000 260,500 15,000 15,750 352,000 240,000 65,000

Grants Disbursed $

30,000 20,136 6,674 76,000 39,747 284,646 32,500 35,586

Grants Payable 12/31/2007 $

185,500 11,500 3,000 267,000 140,000 65,000

50,000 1,700 37,500 2,871 35,250 15,054 1,800 6,000 130,000 7,500 15,750 125,000 100,000 -

-

6,000

3,000

3,000

7,500 15,000

25,000

7,500 27,500

12,500

-

6,000 8,000

6,000 6,500

1,500

15,000 16,000 2,500 2,500 -

15,000 32,000 10,000 37,000 800,000 320,000 10,000 43,500 12,000

22,500 35,500 10,000 2,500 32,000 220,000 10,000 20,000 12,000

7,500 12,500 7,500 800,000 100,000 23,500 -

75,625

104,725

105,350

75,000

7,500 9,000

105,000 15,000 12,000

5,000 15,000 21,000

100,000 7,500 -

21

SCHEDULE 4 (Continued) NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name Association for Civil Rights in Israel (ACRI) Association for Community Development, ACRE Association for Elderly - LOD Association for Eternal Rest (Menuha Nekhona) Association for the Promotion of the Arab Education System Association for the Protection of Mixed Family Rights Association of Bedouin Women to Promote Education Association of Forty For Recognition of Arab Villages Association of Rape Crisis Centers Association of Women, Rahat Association to Promote the Wadi Naim Village Atta - Women's Organization Zlafa Awareness for You Ayam-Recognition and Dialogue B'Tselem: Israel Information Center for Human Rights Bar Ilan University (Ayala Center) Bat Hamidbar Bat Shalom Bat-Melech : Organization Assisting Religious Women in Distress Bedouin Alkhair Society in the Negev Beit Almusica Beit Tfila Israeli Beterem-The National Center for Children's Safety & Health Bimat Kedem Bimkom: Planners for Planning Rights BINA (at Merchavim Chevra Lechinuch Vetarbut) Birthright Israel International Bizchut: Center for Human Rights for Persons with Disabilities Born to Live Proudly Breaking the Silence Bri'ut Plus Bustan Le-Shalom Castal Center Against Racism and Defamation Center for Educational Innovation-Public Education Association Center for Jewish-Arab Economic Development Center for Women's Justice Centurian Charedim Lasviva Citizens Build a Community

Grants Payable 12/31/2006 $

80,610 30,000 14,000 30,500 38,500 19,500 3,000 2,000 6,000 4,000 5,000 107,886 1,000 -

Grant Authorized $

866,148 10,000 14,493 19,000 43,000 55,000 100,000 55,150 6,000 15,000 (6,000) 24,000 10,000 139,643 60,000 6,000 4,446

Grants Disbursed $

940,508 14,493 30,000 37,000 55,500 91,000 47,550 6,000 15,000 18,500 10,000 241,867 30,000 6,000 4,446

Grants Payable 12/31/2007 $

6,250 10,000 19,000 20,000 30,000 47,500 27,100 3,000 2,000 9,500 5,000 5,662 30,000 1,000 -

12,100 70,500 29,000 88,293 6,000 16,600 10,000

15,000 9,000 101 15,000 349,150 99,816 99,021 444,567 70,976 3,000 45,260 6,000 14,000

15,000 12,100 101 249,500 82,786 99,021 336,049 5,000 42,576 3,000 6,200 6,000 10,000

9,000 15,000 170,150 46,030 196,811 1,000 45,000 39,060 14,000

118,300 38,500 5,000

45,000 209,205 108,980 27,000 25,000 50,000

157,500 132,480 27,000 25,000 37,000

45,000 170,005 15,000 18,000

22

SCHEDULE 4 (Continued) NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name Citizens for the Environment in Galilee Collot in the Negev: Institution for Education, Community and Culture College for All Commitment to Peace and Social Justice Committee for Educational Guidance Community Advocacy - Genesis Israel Community for Learning Women Community Stress Prevention Center, Kiryat Shmona Counseling Center for Women Crisis Center for Religious Women Discourse in the Panhandle Duroob E.L.I. Association for the Protection of the Child Economic Cooperation Foundation Efshari Ein-Bustan Elbir El-Hawashle for Education and Welfare El-Sabar Association Eran Center Eretz Acheret: A Different Land Esh David Etgarim:Israel Outdoor Sports and Recreation Association for the Disabled FHAO Fidel: Assn. for Education and Social Integration of Ethiopian Jews Follow-up Committee for Arab Education Forum of Directors of Social Welfate Departments Serving the Arab Population Forum of Representatives of Ethiopian Jewish Community Organizations for the Ethiopian National Project (ENP) Freddie Krivine Association (Committee for Coexistence and Equal Opportunity) Friend by Nature - Community Empowerment Friends of Ayalon Park Friends of Kedma School Friendship and Cooperation Friendship Village Future of the Ethiopian Community in Israel Galilee Society of Health Research and Services

Grants Payable 12/31/2006 $

86,000

Grant Authorized $

5,000

Grants Disbursed $

86,000

Grants Payable 12/31/2007 $

5,000

20,000 27,500 18,000 24,092 12,500 14,000 250 12,500 6,000 2,862 4,000 26,981 12,500

21,500 51,877 55,000 3,000 148,750 87,172 65,000 21,000 2,000 250 22,000 3,000 165,000 20,482 3,000 6,000 28,250 29,058 250 30,000

21,500 51,877 55,000 18,000 144,842 87,172 65,000 16,000 2,000 500 23,000 3,000 165,000 6,000 20,665 3,000 4,000 27,250 31,040 250 27,500

20,000 27,500 3,000 28,000 12,500 19,000 11,500 2,679 6,000 1,000 25,000 15,000

21,600 -

75,632 11,900

87,132 11,900

10,100 -

190,454 30,000

507,969 65,000

476,188 95,000

222,235 -

-

32,000

28,000

4,000

-

27,380

24,380

3,000

75,384 22,500 18,000 2,500 -

183,357 57,800 10,000 55,000 54,500 1,609 (2,500) 212,500

207,529 16,000 10,000 50,000 53,750 1,609 115,000

51,211 41,800 27,500 18,750 97,500

23

SCHEDULE 4 (Continued) NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name Gesher Hinuchi Gemach Terufot Rosh Haayin Gerila Tarbut Gilat Gisha:Center for the Legal Protection of Freedom of Movement Givat Haviva Jewish Arab Center for Peace Granit: Assn for Aid to Women Before, During and After Divorce Proceeding Green Action Green Environment Fund Green Rahat Hagar Bilingual School in Beer Sheva Haifa Women's Crisis Shelter Hamoked: Center for Defense of the Individual Mevaseret-Abu Gosh Hand in Hand: Center for Jewish-Arab Education in Israel Happoel Keter Tel Aviv Footbal Club Hazit Be'Kavod Ha'Sviva:The Israeli Association to Preserve the Environment Hebrew University - in Public Policy HEMDAT: The Forum for Freedom of Choice in Marriage HEMDAT Herzilya Theatre Ensemble Hillel: Association for Jews Leaving Ultra-Orthodoxy Hiwar for Alternative-Democratic Education Hiyot Hotline for Migrant Workers Idan Hadash (New Era) E'ELAM: Media Center for Arab Palestinians in Israel I'LAM-Media Center for Arab Palestinians in Isreal Immigrants for Successful Absorption in the Negev Immigrant Scientists Association of Israel Indimage Institute for the Advancement of Deaf Persons in Israel Inter-Religious Coordinating Council Interfaith Encounter Association Ir-Amim Isha L'isha: Haifa Feminist Organization Israel Aids Task Force

Grants Payable 12/31/2006 $

37,500 250 -

Grant Authorized $

47,000 (250) 5,000 24,300

Grants Disbursed $

47,000 24,300

Grants Payable 12/31/2007 $

37,500 5,000 -

500 1,000

900 2,000

1,150 1,000

250 2,000

412,389 120,459 2,000 10,500 -

4,400 7,700 1,138,964 3,000 21,070 12,200 5,034 1,500 2,307 5,000 15,000 422,000

4,400 1,000,439 3,000 21,070 12,200 124,743 3,500 12,557 5,000 7,500 341,000

7,700 550,914 750 250 7,500 81,000

(22,000) 43,000 23,000 15,000 7,500 50,000 -

30,200 2,200 5,000 31,050 30,000 14,662 140,213 30,000

35,000 2,200 5,000 30,300 45,000 22,162 129,563 30,000

(26,800) 43,000 23,750 60,650 -

15,500 152,500 5,000 15,000 3,954 6,000 143,163 2,000

24,000 31,200 24,000 39,034 2,491 184,062 26,850 2,000

93,000 30,400 5,000 27,000 3,954 44,784 2,491 302,443 26,500 3,000

15,500 83,500 800 12,000 250 24,782 350 1,000

24

SCHEDULE 4 (Continued) NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name Israel Association for Ethiopian Jews Israel Association of United Architects Israel Cancer Association Israel Family Planning Association Israel Free Loan Association Israel PaleStine Center for Research and Information (IPCRI) Israel Religious Action Center Israel Women's Network (IWN) Israeli Association for Immigrant Children (IAIC) Israeli Center for Social Justice Israeli Human Rights Organization of People with Disabilities Jamaa'h Jerusalem Business Development Center: MATI Jerusalem Open House for Pride and Tolerance Jerusalem Venture Partners Karamah - For Human Rights Karev for Involvement in Education Kayan - ("Being") Kefa for Change in the Negev Social Kehilat Shira Chadasha Kehillat Yedidya Kehilla: Center for Cooperative Learning Keren Klita Kesher: Information, Guidance, and Counseling Center Kiryat Noar Galil Elyon-for the Danziger Comprhensive High School Kitar Kol Active Kol Ha'isha: Jerusalem Women's Center Kol Haneshama Kolot Kolot: Tehuda Laborer's Voice (Sut El-Amel) Lachen Lagiya: Association for the Improvement of the Status of Women Lasova Latet Law in the Service of the Elderly Leo Baeck Educational Center Life and Environment Local Committee Bir Hadaj MA'AN: The Forum of Bedouin Women's Organization

Grants Payable 12/31/2006 $

50,000 65,000 186,750 15,903 85,500 12,500 1,000 73,825 28,000 6,500 6,984 250 16,000 30,425 175 1,800 10,000 25,000 5,000 22,500 5,000 33,000

Grant Authorized $

177,250 10,187 11,880 45,000 500 7,500 352,500 15,010 131,000 30,000 27,000 35,000 18,000 191,906 25,000 (28,000) 1,000,939 65,378 6,000 40,840 650 10,000 2,174 60,000 31,000 22,000 26,430 600 2,900 75,000 35,000 25,000 1,000 5,785 30,000 76,000

Grants Disbursed $

152,250 10,187 11,880 65,000 500 7,500 397,750 30,706 123,000 27,500 13,500 35,000 19,000 248,598 25,000 910,939 71,878 3,000 32,720 250 2,174 16,000 60,000 6,000 22,000 49,055 775 1,800 10,000 62,500 35,000 25,000 1,000 10,785 37,500 46,000

Grants Payable 12/31/2007 $

75,000 45,000 141,500 208 93,500 15,000 13,500 17,133 90,000 3,000 15,104 650 10,000 25,000 7,800 2,900 37,500 15,000 5,000 63,000

25

SCHEDULE 4 (Continued) NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name Maala-Business for Social Responsibility Mada Al-Carmel - Arab Center for Applied Social Research Mahapach: Education, Housing, and Livelihood Mahut Center Masorti (Conservative) Movement: Religious Affairs Bureau Massua Matan-Your Way to Give Mavoi Satum ("Dead End") Mazrah: Association to Promote Education and Society Megama Yeruka (Green Course) Meitar: College of Pluralistic Judaism Melitz Centers for Jewish-Zionist Education Merhavim - Institute for Multicultural and Democratic Education for Israel Merkaz Hashachar-Kibbutz K'Tura Midreshet Kama Midreshet Iyun Mifne Center Mifne Institute Mimizrach Shemesh - The Jewish Social Leadership Center Mossawa Movement for Dignified Living Movement for Israeli Urbanism Najan Namag National Committee for Arab Local Authorities in Israel National Council for the Child Naveh Atid - Dahmash Nazareth Nurseries Institute Ne'Emanei Torah Va'Avodah Negev Bar-Kayyama Negev Coexistence Forum Negev Institute for Strategies of Peace and Development Neighbors for Joint Development in the Galilee Netivei Ahva (Friendship's Way) Neve Shalom/Wahat Al-Salam(NS/WAS) New Discourse (Democratic Mizrahi Rainbow) New Family New Initiative for Women Nisan: Young Women Leaders Ogen: Association for Ethics and for the Eradication and Corruption in Israel

Grants Payable 12/31/2006 $

50,000 100,000 15,000 20,000 15,000 473 6,900 1,000 9,500 20,000 980 12,500 30,000 70,100 8,000 5,000 75,000 50,000 26,250 25,200 43,458 3,590 22,075 9,250 17,500 -

Grant Authorized $

25,000 160,600 23,000 39,000 5,000 2,500 (6,900) 20,631 47,000 30,570

Grants Disbursed $

50,000 125,000 125,600 23,000 20,000 20,000 473 21,631 44,000 30,570

65,392 19,977 30,000 5,000 41,864 30,000 280,022 26,100 2,500 2,000 19,802 6,000 150,000 50,000 6,000 35,000 117,000 56,000 28,176 4,067 58,000 60,000 3,594 9,126

60,278 19,990 27,500 5,000 41,864 30,000 164,872 21,500 5,000 2,500 1,000 75,000 -

1,100

1,100

75,000 50,000 2,000 105,200 49,458 26,214 24,175 58,250 62,500 3,594 2,500

Grants Payable 12/31/2007 $

50,000 39,000 2,500 12,500 25,114 967 15,000 30,000 185,250 12,600 1,000 19,802 6,000 75,000 50,000 6,000 59,250 37,000 50,000 5,553 1,967 9,000 15,000 6,626 -

26

SCHEDULE 4 (Continued) NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name OHR Jerusalem One in Nine: Women for Women Victims of Cancer One Plus One One Voice Oranim: Hamidrasha Center for Study Fellowship Oranim (Shdemot) Organization for Housing Rights Oz V'shalom/Netivot Shalom Panim Pardes - for Community Development in South Tel Aviv Parent's Circle: Bereaved Parents Parent's Involvement Center Peace Child Pelech School Permit Work with Dignity Physicians for Human Rights Pinat Shorashim Public Committee Against Torture Qasr Alsir (Alhawshleh) Association Qadaya Al Shabiba-Association to Support Arab Minors R.E.M. - Abu-Grinat Rabbis for Human Rights Rahat: Tza'ad Kadima Association for the Advancement of Education Rape Crisis Center - Haifa Rape Crisis Center - Hasharon Rape Crisis Center - Jerusalem Rape Crisis Center - Tel Aviv Rashi Foundation Regional Council for Unrecognized Arab Villages - Al-Auna Religious Woman's Forum ReE'UT - A Religious Pluralistic Community Re'ut Institute for Vision to Policy RE'UT/Sadaka: Jewish-Arab Youth Movement for Peace and Equality Realistic Religious Zionism Reut Shchenin Ruach Tova SELAH- Israel Crisis Management Center for New Immigrants Self Respect for Women Shaked School Shekel-Asperger Syndrome Pilot Program

Grants Payable 12/31/2006 $

30,000 39,000 7,500 15,000 350 37,000 200 5,000 113,325 350 5,000 3,500 500 86,000

Grant Authorized $

10,000 500 62,500 3,327 81,650 35,000 710 85,100 6,000 1,249 10,000 10,435 3,600 65,004 1,000 13,842 3,500 24,000 3,500 28,171

Grants Disbursed $

10,000 500 58,750 3,327 37,750 7,500 35,000 780 92,000 3,000 1,192 10,385 6,800 155,865 350 13,842 7,000 24,500 3,500 106,097

Grants Payable 12/31/2007 $

33,750 82,900 15,000 280 30,100 3,000 57 10,000 250 1,800 22,464 1,000 5,000 8,074

47,500 1,500 3,089 63,500 70,000 600 -

59,000 5,000 1,650 9,806 30,000 25,000 60,000 50,000 95,500

73,500 5,000 2,575 3,906 25,000 97,500 85,000 600 65,500

33,000 575 8,988 30,000 26,000 35,000 30,000

13,050 30,046 25,000 -

48,090 20,046 21,250 2,500 27,000 6,000 44,000 15,000

49,140 30,046 21,250 2,500 27,000 6,000 20,000 15,000

12,000 20,046 25,000 24,000 -

27

SCHEDULE 4 (Continued) NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name Shilo: Pregnancy Advisory Service Shiluv Institute Shiluv: Integration Shluvim Sidreh Sikkuy: Israel Association for the Advancement of Equal Opportunity Sister for Women in Israel Social Development Committee - Haifa Social Economic Association-SEA Society for Protection of Personal Rights Source of Information South Wing to Zion Support Center for Victims of Domestic Violence - Haifa Supporting Community Syncopa Community Tair Theater-Ahavat Olam Talea' Al-Mostkabal Tashbetz Tasfachin Tech-Careers - Computer Training for Ethiopian Israelis Ethiopian Immigrant Center for Legal and Community Advocacy Tebeka-Center for Legal Aid and Advocacy for Ethiopian Jewish in Israel Tehuda Telah Tel Aviv University The Arab Center for Law and Policy The Arab Youth Movement The Association of Arab Academics The Bedouin Association for Education & Health Development The Branco Weiss Institute for the Development of Thinking The Coalition of Women for Peace The Coalition for Public Health The Committee for Language Access of Health Care in Israel The Committee for Planning and Protecting the Arabs' Rights in the Negev-Assiraj Fund The Citizens Accord Forum Between Jews&Arabs in Israel (CAF) The Eben Seena Society for Education & Health Promotion in Arraba Village The Emil Touma Institute for Palestinian and Israeli Studies

Grants Payable 12/31/2006 $

13,000 19,500 11,000 42,000 39,200 17,500 20,000 12,500 200 42,500 2,000 17,000 3,000 (13,500)

Grant Authorized $

18,389 19,500 25,000 9,763 70,000 116,500 49,065 20,000 48,000 4,900 111,000 10,000 48,000 10,000 5,000 3,000 50,000 93,564 -

Grants Disbursed $

26,389 19,500 23,500 9,763 72,000 155,700 44,065 20,000 27,500 3,200 110,500 12,000 45,000 5,000 3,000 12,500 93,564 -

Grants Payable 12/31/2007 $

5,000 19,500 12,500 40,000 22,500 20,000 33,000 1,900 43,000 20,000 10,000 3,000 37,500 (13,500)

53,536 65,000 9,000 10,000 112,557 -

144,525 30,000 349,001 12,000 (9,000) 5,000 8,000 100,000 22,233 100,000 10,000

117,061 246,501 12,000 5,000 18,000 54,690 5,000

81,000 30,000 167,500 100,000 80,100 100,000 5,000

10,000 -

15,000 50,000

12,500 50,000

12,500 -

4,000 -

10,000 -

9,000 -

5,000 -

28

SCHEDULE 4 (Continued) NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF GRANTS FOR THE YEAR ENDED DECEMBER 31, 2007

Vendor Name The Freedom of Information Association The Foundation in Memory of Eyal Yoel The Heschel Center for Environmental Learning and Leadership The Institute of Jewish - Secular Rites The Israeli Association for Distributive Justice, LTD The Israeli Center for Food Security The Organization for Promoting Long School Day The Shitim Institute The Young Israeli Forum for Cooperation (YIFC) The Yaacov Herzog Center for Jewish Studies Transport Today and Tomorrow Trust of Programs for Early Childhood, Family and Community Education Tzad Kadima:Assn for the Advancement of Conductive Education in Israel Um Batin Local Committee Upper Galilee Rape Crisis Center Van Leer Jerusalem Institute Voice of the Child Western Galilee Hospital, Nahariya Windows Magazine for Children Wing of Love Woman to Woman-Jerusalem Battered Women's Shelter Women Against Violence - Nazareth Women Against Violence: Working Group for Equality in Personal Status Issues Women and Horizons - Nis'a V'afek Women and their Bodies Women's Crisis Center - Negev (Maslan) Women for Women-Haifa Battered Women's Shelter Women Lawyers for Social Change Women of Israel Women's Fund for Human Rights WUJS - World Union of Jewish Students Worker's Hotline: Kav La-Oved Yad L'Isha Yedid Association Yeladenu Be'tnufa Yesh Din Yesodot Youth Building a Future

Grants Payable 12/31/2006 $

15,000 34,000 75,000 15,000 1,000 15,000 -

Grant Authorized $

100,000 158,337 (12,500) 75,000 15,000 18,500 1,000 19,500 10,000

Grants Disbursed $

95,000 123,337 21,500 132,500 15,000 15,000 7,500 2,000 7,500 10,000

Grants Payable 12/31/2007 $

20,000 35,000 17,500 11,000 27,000 -

32,500

132,500

145,000

20,000

6,000 1,100 52,773 3,175 41,000

2,584 7,000 5,500 30,000

2,016 13,000 6,100 30,000

20,000 5,200 10,139 3,841 275,000

20,000 52,973 10,139 6,916 196,000

569 500 5,000 100 120,000

20,250 2,000 7,500 1,555 6,500 24,500 102,281 100 125 -

34,000 27,000 1,000 5,000 2,875 85,838 3,000 33,061 25,000 195,750 40,036 160,524 63,123 75,000 1,953

34,000 33,750 1,000 4,875 88,808 3,000 31,128 25,000 127,000 44,536 212,255 100 62,700 75,000 1,953

13,500 5,000 4,530 3,489 75,250 20,000 50,550 548 -

$ 5,859,352

$ 18,654,051

$ 17,111,246

$ 7,402,157

29

SCHEDULE 5 NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF PROJECTS FOR THE YEAR ENDED DECEMBER 31, 2007

SHATIL EMPOWERMENT AND TRAINING CENTER FOR SOCIAL CHANGE ORGANIZATIONS IN ISRAEL

$

4,735,732

OTHER NEW ISRAEL FUND PROJECTS Israel-U.S. Civil Liberties Law Program Institutional Development Project Ford Project- Administration Various special projects and publications Signing Anew

162,712 433,286 869,563 1,400,840 475,249

Total Other New Israel Fund Projects

3,341,650

TOTAL PROJECTS

$

8,077,382

TOTAL GRANTS

$ 16,493,251

TOTAL GRANTS AND PROJECTS

$ 24,570,633

30

NEW ISRAEL FUND SIGNING ANEW COMBINED SCHEDULE OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2007

Program Services Grant Management

Educational Activities

Total Program Services

$ 16,493,251 75,187 3,462,302 28,807 69,922 50,357 744,692 89,943 24,395 8,229 305,919 128,037 74,122 250,821 14,492 112,583 2,306,003 14,736 22,675 105,525 188,635 -

$

639,130 2,914 134,168 1,116 2,710 1,951 71,074 3,485 945 319 11,855 4,962 2,872 9,720 562 4,363 1,842 89,360 571 879 402 1,843 -

$ 1,521,671 6,937 319,433 2,658 6,451 4,646 26,185 8,298 2,251 759 28,224 11,813 6,839 23,141 1,337 10,387 3,500 212,752 1,360 2,092 956 4,391 -

$ 18,654,052 85,038 3,915,903 32,581 79,083 56,954 841,951 101,726 27,591 9,307 345,998 144,812 83,833 283,682 16,391 127,333 5,342 2,608,115 16,667 25,646 106,883 194,869 -

$ 24,570,633

$

987,043

$ 2,206,081

$ 27,763,757

Grants and Projects Grants/allocations Compensation of officers Other salaries and contractors Pension plan Other employee benefits Payroll taxes Professional fees Accounting fees Legal fees Supplies Telephone Postage and shipping Occupancy Equipment rental/maintenance Printing/publications Travel Conferences/meetings Interest Depreciation and amortization Insurance Board expenses Programs (SHATIL/Other) Regional programs/activities Direct mail program Staff training Other retained services Hospitality Other operating expenses Bank fees TOTAL

31

SCHEDULE 6

Supporting Services Management and General

Fundraising

Total Supporting Services

$

$

$

85,037 960,409 20,363 49,427 35,596 49,206 74,689 5,520 11,179 13,795 4,653 82,300 22,283 13,262 31,834 8,195 52,774 20,521 4,605 149,413 1,966 11,724 26,922 41,276

$ 1,776,949

42,518 1,484,480 28,508 69,197 49,835 59,894 18,403 27,591 9,307 152,608 33,601 21,017 53,518 16,390 30,532 8,473 10,969 275,345 2,950 102,584 5,862 53,849 -

$ 2,557,431

Total Expenses

127,555 2,444,889 48,871 118,624 85,431 109,100 74,689 5,520 29,582 41,386 13,960 234,908 55,884 34,279 85,352 24,585 52,774 51,053 13,078 149,413 10,969 275,345 4,916 102,584 17,586 80,771 41,276

$ 18,654,052 212,593 6,360,792 81,452 197,707 142,385 951,051 74,689 5,520 131,308 68,977 23,267 580,906 200,696 118,112 369,034 40,976 52,774 178,386 18,420 149,413 2,608,115 10,969 275,345 21,583 128,230 124,469 275,640 41,276

$ 4,334,380

$ 32,098,137

32