Type: Start Your Plan

Many of us are familiar with Israel’s vibrant nonprofit organizations and the important work they do. What most of us don’t realize, however, is just how big an impact Israel’s nonprofit sector has on the country and its people.

In fact, as a percentage of the country’s total GDP and the number of people employed, Israel has one of the largest nonprofit industries in the world. Following the business and public sectors, Israel had an estimated 43,000 registered nonprofits as of 2016, an impressive number considering the total size of the country. 

The work and impact of Israeli nonprofits can be seen in nearly every area within Israel society. Whether it’s agriculture, music, social welfare, animals, technology, business financing, environment, culture, human rights, healthcare, international aid, or education, Israeli nonprofit organizations are fully ingrained into Israeli life and the economy.

One of the reasons Israel nonprofit sector is so robust dates to the 1990s, when the Israeli government started to privatize key public services. Israel actively shifted the responsibility for specific social services to both the business and nonprofit sectors, which resulted in some of Israel’s non-profit organizations playing a core role in essential social services nationally. One such example is NATAL, a nonprofit who serves as the defacto service provider for Israelis suffering from symptoms related to PTSD.

As of 2015, the nonprofit sector accounted for an estimated 67 billion NIS (about $22 billion USD) to the Israeli economy, or over 5% of total GDP. The nonprofit sector also employed as of 2015 as estimated 470,000 people, which accounted for nearly 14% of the entire workforce in Israel! In addition to the tens of thousands of registered nonprofits, there are an estimated 3,500 active registered Israeli foundations Israel, whose core function is funding of grants such as scholarships to individuals and large gifts to major institutional organizations.

As you can see, Israel’s nonprofit sector not only has a big impact on the individuals it serves, but also plays a major role in the country’s economy. Because Israel’s nonprofit organizations are such a key part of core services for healthcare, education, and social services, they really do impact the lives of millions of Israelis every day.

For many of us who are passionate about Israel, there comes a moment in time when we’re ready to take action. When that time arrives, you decide that you ready to commit to funding a heartfelt cause after your lifetime.

At that moment, you are ready to make the promise to include Israel in your Legacy.

While you may not know how you will fund your legacy, you are ready make a commitment to create your legacy plan. Maybe you already support several favorite causes or organizations, or perhaps you are thinking creating your Legacy plan for the first time.

You may still not know at that time what your assets or needs will be years from now. Perhaps you will ultimately allocate a percentage of your future assets instead of a specific gift amount. The details of your legacy plan are left for the future. For now, simply say, “Yes, I do want to leave a legacy in Israel.”

Making a promise begins by considering the future needs of your family when you are gone. It’s about embracing the idea of sharing your assets with a philanthropic cause you believe in. After you’ve made the promise, you can take as much time as you need to decide how to honor what’s most important to you and your family, formalize your legacy plan and decide when to fund that plan.

Once you have completed your Legacy Process you can appreciate the job and completion it brings, assured that nothing in your estate is wasted, that no one is left out, and your dream will be is fulfilled.

Good outcomes in life take thought and so it is with Legacy. While complex scenarios exist, simplicity defines the vast majority of Legacy Gifts. Consulting with your professional advisor is vital to maximizing the benefits to you personally and to your organization.

Donor’s may have several professionals involved, including an attorney, accountant, or other financial advisors. The professionals not only oversee the technical aspects of the Legacy Giving process, but also help ensure that the structure and language leaves no ambiguity that could potentially cause a concern later when the gift is finalized.

In addition to the donor’s team of professionals, your beneficiary organization may have professionals be involved in the process. Nonprofit professionals are there to work together with your team of advisors to help create specific language in your Legacy plan and ensure a smooth funding process

Legacy Giving, or Planned Giving, refers to an allocation of funds from a donor’s estate at death. The Legacy Plan is a companion piece to the estate plan and designates one or multiple nonprofit organizations as beneficiaries. The estate plan is used to transfer funds to heirs or family.

Through your Legacy Gift, you can support the philanthropic causes you care most about far into the future.

Most Legacy gifts pass through a bequest, which is a designation in your will or trust that a percentage or amount of your estate will go to your chosen beneficiary. The assets used can include stocks, bonds, real estate, a life insurance policy.

The Legacy planning process can also help to preserve and communicates a donor’s values, memories, and wishes in order to ensure clarity for future support of organizations and causes they care about. For example, the plan may encompass a family history statement, endowment(s), donor advised funds for children, outright distributions, family advisory committees, and several other philanthropic structures.

Your estate attorney and financial advisors are your partners throughout this process. You may decide to support a single organization or have multiple beneficiaries. In its most simple form, a Legacy Gift can even  be single statement in the donor’s that designates a specific amount of money to a specific nonprofit.

The process of including an Israel based nonprofit in your Legacy plan typically matches that of a U.S. based organization. That’s because most Israel based nonprofit have a U.S. partner nonprofit, or American friends of organization, to receive and process the funds.