Israeli Government to Propose Greater Acknowledgement and Cooperation With Non-Profit Organizations

October 16, 2007

The Israeli government plans to adopt a new policy of cooperation with and encouragement of the country's non-profit organizations. A proposed declaration and policy paper will define areas of responsibility for NGOs, and ways in which the state and civil society organizations can cooperate. Concrete measures proposed by the government to assist non-profit organizations include abolishing the 4% tax on employee salaries paid by non-profit organizations, and raising the limit for tax exemptions for donations within Israel.

A key passage in the draft declaration says. "The government of Israel views the organizations of civil society and commercial companies that carry out activities with social goals as partners in the effort to build a better society."

NIF and SHATIL have been part of a committee established in the first half of 2006 by the government to discuss coordination and cooperation between the state, non-profits and business. Earlier this year SHATIL persuaded the Israeli government to drop major elements of a proposed new law which would have made it much more difficult to set up an NGO. At SHATIL's suggestion, the government also dropped a clause which would have appointed a state official to resolve conflicts between the government and NGOs and agreed that such disputes are best settled by the courts. 

"This is another important milestone in the development of Israel's civil society and the public understanding of its value in protecting democracy and justice for all sectors of the country's population," observed Eliezer Yaari, Executive Director of NIF Israel. "Alongside the welcome partnership that has been built with Diaspora Jewry, Israeli civil society must draw more from its own resources, manpower and vision to ensure the strength, stability and sustainability of Israeli democracy."