Philanthropy in Israel

In recent years, awareness of philanthropy in Israel has been rising, and it can be seen that the volume of donations to non-profit organizations and non-profit organizations on behalf of businessmen has increased. However, in relation to all donations to non-profit organizations and institutions, the percentage of donations from large private donors in the country remains low. Studies show that the share of donations from business companies in Israel is also small.

It seems that in relation to Western countries and the United States in particular, the involvement in philanthropy on the part of Israelis, whether privately or through their businesses, is underdeveloped. Leading businessmen abroad donate a significant percentage of their private capital or open philanthropic funds and transfer to them substantial sums of money from the company’s profits for donations to charities. On the other hand, studies show that about half of the business companies in Israel contribute less than a million shekels a year, even though their profits are high. Some of these companies donate only tens of thousands of shekels a year to non-profit organizations and non-profit organizations. According to a survey conducted by Ben Khoury on the subject of corporate social responsibility, in 2006 the volume of donations to non-profit organizations and non-profit organizations by businesses in Israel was 1.1 billion. This, while according to data from The Central Bureau of Statistics This year, all donations to non-profit organizations and non-profit organizations in Israel were estimated at NIS 16 billion.

One of the reasons why wealthy Israelis and successful Israeli companies do not make large-scale donations to non-profit organizations and non-profit organizations is the perception among many of them that the non-profit organizations’ mechanisms are corrupt and do not operate properly . According to this concept, donations to non-profit organizations are used to pay the infrastructure and salaries of their managers, and a significant portion of their donation is not used to help the needy themselves. Another reason for this may be the desire of the Israeli donor to be more personally involved by providing assistance in other ways, rather than just giving money in a way that is perceived as ‘colder’.

The relatively low involvement in the field of donations to non-profit organizations by Israelis, compared to the rest of the Western world, can also be due to the fact that today donors in Israel are members of the first generation who built family capital, compared to the United States, where most donors are second and third generation. In wealthy families. The mindset of the second and third generations, who were born into a reality of economic wealth, differs from that of the first generation, in that they feel a responsibility to contribute back to society, and have less difficulty ‘separating’ from money. Undoubtedly, the fact that abroad most of the capitalists hold sums of money of orders of magnitude that do not exist in the country, also contributes to this.

Except for the reasons stated, a perhaps even more significant factor is that in Israel, unlike the United States or European countries, there is no developed mechanism of philanthropic foundations. This means that there is no existing system, which will encourage a public culture of large-scale donations to nonprofits. In the United States, for example, a capitalist can transfer a sum of money to a philanthropic foundation established by the state. The capital owner must declare the goals of the fund, and allocate a certain percentage of its funds each year for the benefit of the community, whether through donations to charities or through direct activity.

Legislation in Israel until recent years did not allow the establishment of philanthropic funds as a legal entity. Abroad, transferring funds to a fund means that this money is closed and intended for stated purposes only. In Israel, in the absence of such a legal entity, capitalists can put the money in a short-term deposit, but it will be easier to withdraw it and use it for their needs, if the need arises, and therefore, the commitment to make a smaller contribution.

The change in the philanthropic involvement of capitalists and leading companies in Israel has begun to occur largely due to a change in the approach of private donors and philanthropic foundations abroad. Israel is now perceived as a country with a stable economy and successful business companies, and therefore often philanthropic foundations abroad, as well as private donors, make donations to non-profit organizations and non-profit organizations with the participation of Israeli entities, whether business companies or government organizations. This can be seen in the new trend of donations to non-profit organizations using the “linkage” method.

Thus, today donations to nonprofits in Israel are still mostly made by philanthropic funds abroad, although there is a trend of change in the attitude of capitalists and businesses in Israel to philanthropy, whether from internal perceptual change, or from external ‘encouragement’ from philanthropic foundations and private donors dance.