Birthright Israel Foundation

“In 2012 the Foundation received an advance payment from a donor for 2013. The Following is a pro-forma presentation reflecting results of operations consistent with the donors' intent: 2012 2013 ------ ------ Total revenue, as reported $101,960,863 $74,257,356 Advance payment (20,000,000) 20,000,000 ------------- ------------ Adjusted revenue $ 81,960,863 $94,257,356 ============= ============ Revenue less expenses, as reported $ 14,771,560 $(13,769,437) Advance payment (20,000,000) 20,000,000 ------------- ------------- Adjusted revenue less expenses $ (5,228,440) $ 6,230,563 ============= ============= Form 990, part VI, Line 11 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 trustees for discussion and comment. each board memeber was provided ample opportunity to comment on the information contained in the 990 prior to its filing with the internal revenue service. the information contained in the 990 prior to its filing with the internal revenue service. internal revenue service. the information contained in the 990 prior to its filing with the internal revenue service. its filing with the internal revenue service.”

“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.”

“The compensation of the President and CEO, COO and CFO 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. For all other individuals reported on the Form 990, compensation decisions are reviewed internally by the Foundation's officers and approved by the President.”

“The taxpayer makes its Form 990 available to the public 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 financial statements, 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.”