The Successor Organization

Let's look at how the Claims Conference reports on their Successor Organization income.

In this section, we'll be analyzing their assumptions and comparing [1] what they report to the general public through their website pages and publications, [2] Their Audited Financial Statements, and [3] Their U.S. Federal Income Tax Returns.  We'll be publishing the discrepancies we find. - It is a work in progress, so be patient

First off; what is "The Successor Organization" ?
Under Section 2, Paragraph 1, Sentence 3 of the Law on the Settlement of Open Property Issues, or VermG(Nachfolgeorganisation im Vermoegensgesetz) , The German Government aurhorized the Conference of Jewish Material Claims against Germany, Inc. (JCC) to claim unclaimed Jewish assets, designating the Claims Conference "The Successor Organization:.

The basic idea was that this would keep both the German state and any aryanizer from benefitting from the assets siezed between Jan 30, 1933 and May 8, 1945, that belonged to persecuted Jews.  The law does not direct the Claims Conference how to dispose of the assets or what to do with the proceeds.

The Claims Conference...  "It sells or receives compensation for this property and uses the proceeds to fund organizations and institutions that assist needy Jewish victims of Nazi persecution, and that engage in Shoah research, education and documentation.  " -- from the JCC website.

In the "The Successor Organization" section of their beautiful 2008/2009 Annual Report PDF, (found here) - "...the Successor Organization "generated" revenue of approximately $151 million from sales, compensation, investment priority decisions, and other items in 2007. This revenue is net of certain payments and costs directly connected with these items. In addition, there was special income of approximately $233 million arising from the Wertheim properties..."

    According to their 2007 AUDITED Statement of Activities (Profit Loss Statement) found in their 2007-2008 Audited Reports (found here); The Claims Conference lists $284.8 Milion in Successor Organization Revenue.  Why the difference?  


In the same Annual Report, the Claims Conference stated that "As of the end of 2008, the Claims Conference has filed 121,411 claims covering real estate and businesses as well as additional claims for smaller types of assets. These smaller claims are being handled separately from the real estate and business claims.  For the real estate and business claims, the German restitution authorities have issued confirmed or pending decisions on 86,481 claims, of which 12,411 (14 percent) were approved for the Claims Conference."

At the May 2008 point, (7 months earlier) the Claims Conference stated it had filed 121,016 claims and Germany issued confirmed or pending decisions on 85,299 claims, of which 12,082 (14%) were approved for the Claims Conference.

 How was the Claims Conference able to submit 305 additional claims under the The Successor Organization program when the program is supposed to be closed?  
How did Germany confirm or acknowledge pending decisions on 1,182 more claims?
What is their value?
Who were the survivors and businesses?
Who are their heirs?
Why is Germany still paying claims when the Claims Conference stopped paying survivors and heirs?
Are the JCC numbers reliable?

In 2007 the Successor Organization Fund Received $308.9 Million in revenues and paid out $111.1 Million (36%) through the Goodwill Fund Program and $45.7 Million (15%) in Grants.  -- Expenses were $14 Million (5%).  
 
In 2008 the Successor Organization Fund Received $158.7 Million in revenues and paid out $32.6 Million (22%) through the Goodwill Fund Program and $160.1 Million (101%) in Grants. -- Expenses were $12.3 Million (8%).


Why the sudden switch from restitution (compensation to survivors and heirs) to philanthropy (grants)? 
Did the survivors and heirs simply vanish when the Goodwill fund program slammed shut?

In 2007 The JCC credited the German Foundation Funds and debited the Hardship and Article II Funds. The following year they Credited the Successor Organization account and Debited the German Foundation Funds.   SO; 2008 expenses were reduced by $1.7 Million (1% ) using an "other  expense" entry assessed to the German Foundation Funds.   This expense entry seems to offset a 2007 credit entry of $1.5 Million which offset a 2007 Expense entry from the Hardship and Article II funds.  
                   
I am not a forensic accountant, but it appears that the Claims Conference is a prepetual shell game, shifting income and operating expenses among funds which may or may not correspond to the money they receive, and burning through $25 million in operating and other expenses.