For the first time, the State of Israel will recognize the importance of philanthropic funds as a vital element in financing non-profit associations and social activities.
The joint Government, business sector and third sector round table has submitted to Prime Minister Benjamin Netanyahu a plan to promote both individual and corporate philanthropy in Israel. The goal – to increase the percentage of contributions.
According to data presented to the Prime Minister, the State of Israel is not realizing the contribution potential of its citizens, relative to that of other countries.
The steps were formulated by Prime Minister’s Office Director-General in coordination with the Finance and Justice Ministries, the Revenue Division, the Tax Authority and business and third sector representatives. The plan will be submitted to the Knesset for approval.
The steps included will make it easier for both the public and business sector to donate.
In keeping with Government goals, the State will, for the first time, provide tax exemptions to those who donate NIS 180 per annum. Similarly, the ceiling for exemption-eligible donations will be raised to NIS 7.5 million in place of the current NIS 4.4 million.
The plan significantly expands the possibility for individual wage-earners to donate and receive the tax exemptions due to them, via their salaries, quickly and without unnecessary bureaucracy. For the first time, Government ministries will permit state employees to also benefit from these procedures.