The Finance Committee approved tax benefits to 65 non-profit organizations. These organizations will benefit from a reduced tax on donations. The organizations were approved for the benefit after the Tax Authority conducted an inspection and found that the organizations fulfill the criteria for proper administration and other categories. Finance Committee Chair, MK Nissan Slomiansky (HaBayit HaYehudi) stated: “The tax benefit for the third sector lowers the need for State funding.” Among the organizations receiving the tax benefit will be education, welfare, religious, cultural, sports and environmental organizations. Before the approval, the Committee received a review of the tax benefits on donations from Tax Authority representatives.

Slomiansky said: “This tax benefit aids the third sector in a way that replaces the State’s involvement in social issues, especially welfare. The State grants tax benefits in order to encourage donations. The organization benefits, the donor benefits because he receives a tax return, and the State benefits because the social issue is being dealt with by an outside institution and does not affect the State’s budget.”

Yehuda Monsengo, a chief executive in the Tax Authority stated: “These are benefits given to non-profit organizations, who work towards the public good. The benefits are given to organizations which fall under specific categories, and then they can enjoy public institution status. Public institutions enjoy many benefits such as certain tax exemptions and lower taxes on donations. The Tax Authority only serves as an adviser to the Finance Ministry on this matter. We examine the organizations, because not all will receive benefits. There is a lot of interpretive space in defining which organizations work for the public good. The Finance Minister has the discretion and it is he who decides which organizations will receive tax benefits. All the organizations approved for tax benefits have been in existence for at least a year.”