Non-Profit Sector in Israel

Definition

The non-profit sector in Israel is composed of all the non-governmental organizations in Israel engaged in activities of public or private interest without any monetary profit.

Background

The non-profit sector in Israel consists of 25,000 organizations that employ over 230,000 people. Its share of the labor force is nearly double the average in 22 developed countries, and is bigger than the American and British non-profit sector.  The sector's share of the GDP in Israel increased from 6.5% in 1995 to 7.2% in 2002. 

Although the non-profit organizations are involved in many fields,  80% of their activity is focused in five fields: religion, education, culture and leisure, social services, and philanthropy.  

Legislation in Israel provides the legal framework for non-profit organizations such as associations, public trusts, and non-profit companies. The definitions vary in the permissible management structure, accountability of position holders, and the report duties. These structural differences allow organizations to adopt the legal framework most suitable to their activities.  Certain exceptions to the rule, such as universities, public health care systems,  and trade unions, are codified in specific legislation.

However, the variety of legal frameworks is not always sufficient. Unlike many countries, philanthropic foundations in Israel don’t have a specific legal status or enjoy tax benefits.