Israeli Government Approves Assistance for NGOs

Two weeks ago, the Israeli government approved a package of measures that will assist the country’s NGOs. In recent weeks, as a result of the economic crisis, New Israel Fund/SHATIL has positioned itself as one of the leading organisations fighting to minimise the damage to NGOs by reduced donations. Many of the measures now approved were submitted to the government in December as part of the NIF/SHATIL Emergency Plan.

Ra’anan Dinur, Director-General of the Prime Minister’s Office unveiled the assistance package, which will cost the government an estimated $1.5 million, and will be channelled through a newly established Centre for Nurturing Social Entrepreneurship.

To encourage small Israeli donors, the threshold for tax rebates has been lowered from $100 per year to $75, while salaried employees will also receive tax incentives for the first time. To encourage major philanthropists the ceiling for tax deductions will rise from $1 million to $1.875 million. Raising the salary tax exemption threshold from $21,250 to $40,000 per year will assist smaller NGOs, and there will also be tax breaks for NGOs employing volunteers.

In addition, a committee has been established to investigate ways of removing government bureaucracy for NGOs and enhancing coordination between government and NGOs.

Eran Klein, Project Manager at Shatil said, "The programme is much less than we expected and what is needed. The sector is in a dangerous situation and if it does not receive the necessary help, the entire country will pay the price."