How Israel Nonprofits Make an Impact

How Israel nonprofits make an impact.

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.

One More Child

In Legacy, we all have one more child.

We are each endowed with different talents and advantages. Children, in particular, are a blessing that come to some and not others.

But whether we have ten kids or none at all, we all have One More Child to worry about and protect. We each have a unique opportunity through this Child to pass our values on to the next generation. That One More Child is your community and the organization and individuals you support through your Legacy gift.

Most donors never meet the individuals who will one day benefit from your Legacy Gift. But, through their Legacy Gift, most donors develop a deep connection with their beneficiary nonprofit based on a shared vision for the future. The organization you support – and they people they help – are indeed much like one more child.

So, who is your One More Child?

This child is one that you believe in and that you choose to protect by including in your legacy.

Legacy Starts With A Promise

Start by making a simple promise. “Yes, I want to leave a Legacy”

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.

Legacy is For Everyone

No matter your age or story, Legacy offers you an opportunity to make an impact.

You don’t need to be wealthy or approaching old age to start a Legacy Plan. In fact, almost anyone can make Legacy Gift.

One of the big misconceptions about Legacy Giving is that you only wealthy philanthropists create Legacy Plans and make large gifts. While it is true that some legacy gifts are large, that is more the exception more than the rule. In fact, research has consistently shown that just the opposite to be true. In the U.S., the estimated average charitable bequest is between $35,000 and $70,000*.  

A second common misconception is that Legacy Gifts are made predominantly by older donors in the 60’s, 70’s, and 80’s. While that was true to some extent in the past, legacy gift commitments are now commonly made from individuals in their 40’s and 50’s.

Another commonly misunderstanding about Legacy is that the process of making a Legacy gift is complex and time consuming. But making a Legacy gift can be as simple as putting a short commitment in your will that names a specific nonprofit organization as the beneficiary. While most donors do get help from their attorneys, the process is still relatively straight forward.

It’s also important to know that Legacy Gifts are fully revocable and can be given as a percentage of the value your estate at death – not a specific dollar amount. First, that means that you are free to make changes to your gift commitment at any time should circumstances change. As well, if your gift is designated as a percentage of your estate, you don’t need to know how much you’ll have to specify a specific dollar value.

As you consider your philanthropic giving in the future, keep in mind that Legacy Giving truly is for everyone.

Legacy Tax Strategies

Where you pay taxes can make a difference. Here’s are a few things to keep in mind.

The way charity fund transfers are taxed is specific to each country.

If you live in the United States, the estate tax only impacts those who are leaving behind more than $5.6 million per person, or $11.2 million per couple. Because of this, most people are no longer going to be affected by the U.S. estate tax (although those who are may end up paying the 40% rate).

Bequest, which are funded through either through the donor’s will or living trust and take effect at the time of death, are still the most common funding vehicle. For most people, bequests remain the ideal choice for Legacy gifts. However, as with all funding options, the way bequests are taxed may not be best choice depending on the specific situations.

In specific situations, for example, it could make sense to incorporate individual retirement accounts (IRA) beneficiary designation together with a charitable remainder trust. Generally speaking, your withdrawals from traditional IRA accounts are subject to standard income-tax rates. In certain instances, since most other assets will transfer to heirs at the time of death are won’t be subject to income tax, there may be a substantial tax benefit received by funding your philanthropic gift through your IRA in place of a bequest.

It’s always recommended that that you always consult the advice of your attorney or advisor when determining the best approach to Legacy Planning.

What Makes Legacy So Satisfying?

What makes Legacy So Satisfying

Experience the feeling of completion that Legacy brings.

Creating a Legacy Plan is an empowering experience, one that creates joy and offers a chance to put your personal imprint on the future. It completes the work of your life and enables you to share the bounty you’ve earned the organization and people you love care about. This includes those you know personally, as well as the organizations whose work inspires you.

By supporting the work of a philanthropic cause you believe in, Your Legacy Plan is your vision for the future, you crate your plan and think about The process of creating a Legacy Plan and envisioning the impact on the future is inspirational and deeply satisfying for the donor.

For donors and their families, Legacy also a a profoundly personal experience. a truly empowering act that offers the donor an opportunity to help a philanthropic cause they are passionate about. The Legacy process is a profoundly meaningful experience for the donor and, once complete, offers the individual a powerful sense of joy and completeness.

Legacy is a truly empowering act that lets you look from this world into the next and actually directly impact events. It creates joy and an unusual feeling of completion.

Legacy planning is a perfect way to engage the people you love in the causes that you love.

The legacy journey can enable us to move through initial discomfort of confronting our own mortality or getting started on crucial estate planning. Strikingly, these barriers melt away as the prize of moving towards a gratifying plan, more knowledgeable in the process, and with the prospects of being in control of our destiny.

Personalize Your Plan

Create a Legacy plan that is personalized to your specific situation and goals.

The concept of planning your legacy may seem a daunting task, but it can be a meaningful, enjoyable and deeply fulfilling process. Part of that process includes the personalization of your Legacy Plan based on your specific situation and goals.

While all Legacy Plans are unique, every Legacy should include the following three essential elements:

Beneficiaries: The beneficiaries are the nonprofit organization who will receive the funds. While you may decide one specific organization only, Legacy Plans often include two or more beneficiary organizations. Note that some nonprofit Legacy programs allow you to support specific projects or initiatives within the  organization, in which case you may choose to designate the funds towards a specific project.

Funding Structure:  Three common ways to fund your Legacy include lump sum at death, a gift over For a term of years (two, fiver or event twenty), or a permanent fund which distributes annual income to your beneficiary in perpetuity. The funding structure you choose will depend on what works best for you or your beneficiary.

You can also designate a specific program or programs withing an organization, or permit the funds to flow unrestricted so that the organization’s leadership can decide their best use.

Funding Amount:  The amount you decide the fund up to you – no amount is too much or too little. You may fund a specific dollar amount or specify a percentage of your estate. For many people, percentages work better because you may not know today the exact assets that will be available in your estate later. If you’re funding multiple organizations, you can specify the percentage that each beneficiary organization will receive. 

Once your gift is funded, your promise becomes a reality and your funds can flow to all the organization you choose and individuals they support.

Working With Professional Advisors

For most of us, peofessional advisors play an important part of the planning process.

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

What is Legacy Giving?

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.

What are you passionate about?

Legacy is truly empowering act that offers the donor an opportunity to help a philanthropic cause they are passionate about.

Each of use has a unique story that has led us to where we are today. That story may involve your family, your work, and your life’s history.  Your personal story plays and passions play an important role in determining which philanthropic causes you are most passionate about.

With philanthropic causes as varied as their dedicated supporters, Israel’s nonprofits support a broad spectrum of needs related to healthcare, social service, education, advocacy, the arts, science, and beyond. As you learn about the work and people in Israel’s nonprofit sector, you’ll discover a dynamic, high impact culture that helps make Israel such a vibrant society.

Take some time to explore the stories about impact that specific nonprofits organizations in Israel make on a daily basis. For some donors, that means visiting the an organization for a day and seeing first hand what the organization does and people they support.

At some point, when you identify a cause whose work and values align closely with your own, you’ll know you want it sustained and it’s time to turn your passion into action.