Israeli Government Deepens Cooperation with Philanthropic Organizations like NIF

March 11, 2008

The Israeli government has recognized the vital role that non-profit organizations play in Israeli society and has adopted a number of measures to formalize its relationship with philanthropic endeavors and enhance cooperation.

“The new policy signals a profound turning point in government thinking about non-profit organizations,” explained Raanan Dinur, Director-General of the Prime Minister’s Office.

According to Professor Benjamin Gidron, Director of the Israeli Center for Third Sector Research and School of Management at Ben Gurion University of the Negev, the Israeli government recognizes the important contribution that non-profit organizations make to Israeli society and understands the need for dialogue and cooperation.

“There are more than 25,000 non-profit organizations operating in Israel,” he explains, “which are responsible for 13.5 percent of the economic activity in Israel and these numbers are increasing all the time, so it is difficult for the government to ignore the third sector.”

Professor Gidron, who serves on NIF’s International Council and SHATIL’S Advisory Committee, says that most of Israel’s non-profit organizations provide services, while hundreds are social change organizations. “In developing the social change model which fights for improved rights through court petitions and lobbying for new legislation, NIF played a significant pioneering role.”

Twenty years ago there were only 2,500 active organizations in this sector, most related to political parties and public institutions. NIF has helped create a strong social movement which has consolidated the status of Israel's civil sector.

Gidron says that the new government policy is the fruit of behind-the-scenes negotiations by a joint government-third sector committee set up in 2000 whose members include, among others, himself and SHATIL Director Rachel Liel.

The new government policy includes:

• A newly established council for exchanging information, which will provide a ‘roundtable’ for discussions and consultations.
• A data bank on all philanthropic organizations based on the U.S. Guide Star model, which will encourage transparency.
• An increase in tax benefits for donors to non-profit organizations.
• A greater priority in government funding to non-profit organizations providing social services.
• A special unit in the Prime Minister’s Office to coordinate cooperation with non-profit organizations. The unit will begin with an annual budget of $555,000.