Charles R. Bronfman, the co-chairman of Seagram Company, has been selected as chairman of the new philanthropic entity that will be created with the merger of the United Jewish Appeal and the Council of Jewish Federations, the New York Times reports.

The merger of the two groups has not received final approval, but Bronfman's selection is seen as an indication the plan will go forward.

Bronfman, 67, is a Canadian billionaire well-known for his charitable contributions to Jewish causes and his business investments in Israel. He is the brother of Edgar M. Bronfman Sr., the other Seagram co-chairman.

The United Jewish Appeal and the Council of Jewish Federations have come under increasing criticism for their perceived lack of fresh ideas in terms of causes and their lack of close communication with donors, the Times reports.

Both groups still raise more than $1 billion a year, however.

The new entity - which does not yet have a name - will transfer most of its decision-making to the 189 groups that make up the Council.

This move will give donors in communities throughout the U.S. and Canada more say in how their gifts will be used.