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Israel's Third Sector

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Israel's Third Sector Israel’s Third Sector Nissan Limor Ms. Suzanne Aisenberg, adjunct member Prof. Benjamin Gidron, academic advisor August 2004 Third sector organizations in Israel are coping at present with rapid changes forced upon them by the government’s economic and social policy, a significant decrease in public resources, and various legal requirements, including those of public transparency and accountability. The organizations’ agenda is dictated not only by the priorities set by the institutions themselves, but also by the great demand for their services stemming from the reduction in state resources, among other things. And if all of this were not enough, the sector is also contending with difficulties rooted in the organizations’ current composition and operating methods, which are not necessarily conducive to strategic thinking and the ability to adapt to changing situations. From this perspective, a clearer picture of the sector’s strengths and weaknesses is presently coming into view than was previously possible. In this paper we present the general background for the third sector organizations’ activity and development, and trends in the Western world (particularly in the US and Great Britain) that may be predictive of coming trends in Israel. In general, Israel is a part of the Western world, and developments occurring in the West reach Israel and have experiential and practical implications here. Thus, an understanding of what is going on around the world today will make it easier to plan for the world of tomorrow. The preliminary preparatory work for this report was carried out during January-June 2004 by the undersigned, with the assistance of Ms. Suzanne Aisenberg as an adjunct member and Prof. Benjamin Gidron as academic advisor. For purposes of the study a comprehensive survey of the professional literature in the field was conducted, relevant materials were collected in Israel and abroad, meetings were held with various parties in Israel, and an examination was made of similar issues in the US and Britain, including a trip to the US (March-April 2004). In June 2004 Ms. Suzanne Aisenberg visited Israel. Within the context of this visit a series of meetings was held with various parties in Israel (from the government, the third sector, foundations, JDC-Israel, the Jewish Agency, federation representatives, etc.), at which research questions were brought up and discussions held on the various issues raised. Keren Yad Hanadiv and the Kahanoff Foundation, which have been active in Israel for many years, lent their support to this research, and received detailed recommendations deriving from this study. I would like to thank the Kahanoff Foundation and Keren Yad Hanadiv for their support, and all of individuals and organizations, in Israel and abroad, that aided in the preparation of this report by giving of their time, offering useful advice, providing needed materials and enabling us to examine the various issues and to submit our recommendations. Nissan Limor August 2004 Table of Contents Table of Contents .......................................................................................... 1 Introduction................................................................................................... 3 Section 1 – The Third Sector in Israel ........................................................ 7 General ........................................................................................................................... 7 Historical development ................................................................................................... 8 The number of third sector organizations in Israel ...................................................... 12 The place of third sector organizations in the Israeli economy.................................... 14 Chapter 2 – Government Policy on the Third Sector.............................. 17 The situation in Israel ................................................................................................... 22 Public funding of Israel’s third sector.......................................................................... 25 Association supervision and the Registrar of Associations .......................................... 31 Section 3 – Third Sector Umbrella and Infrastructure Organizations . 38 Umbrella organizations ................................................................................................ 38 Infrastructure organizations ......................................................................................... 42 Umbrella organizations in Israel.................................................................................. 44 Umbrella organization – The Voluntary and Nonprofit Sector (R.A.)..................... 45 The National Council for Voluntarism (R.A.).......................................................... 50 Infrastructure organizations in Israel........................................................................... 51 Section 4 – Third Sector Organizations in Israel..................................... 53 The third sector organizations’ position....................................................................... 57 The attitude of government entities toward third sector organizations........................ 63 Foundation and federation attitudes toward third sector organizations...................... 68 Section 5 – Specific Issues .......................................................................... 76 Information ................................................................................................................... 76 1 The GuideStar database................................................................................................ 80 Capacity building.......................................................................................................... 83 Organization boards ..................................................................................................... 85 Personnel training ........................................................................................................ 89 Research........................................................................................................................ 92 Program evaluation ...................................................................................................... 93 The accreditation process............................................................................................. 96 Association transparency, accountability and reporting............................................ 107 Appendices................................................................................................. 111 Individuals and organizations with whom meetings were held .................................. 113 Sources........................................................................................................................ 117 2 Introduction Israel’s third sector is considered to be one of the largest in the world in terms of contribution to the GDP and the number of those employed in it. It has been an important factor in Israel’s economy and society since the early days of Jewish settlement in Eretz Israel at the end of the 19 th century. It might presumably have been anticipated that in the democratic State of Israel, which seeks to be a focal point for the Jewish world, the third sector would set the standard for proper conduct, for full and unrestrained engagement of the various problems afflicting the State and its society, and for the effort to find solutions to these problems. In personal terms, and in terms of contribution and voluntarism, Israel does indeed occupy a highly respectable place on the world pyramid. The charitable and mutual assistance activities that take place in Israel are imbued with the spirit of time-honored Jewish tradition. However, the organizational status of the various bodies seeking to provide solutions reflects a large gap between theory and practice, between personal giving and the organizational framework. This is not the place in which to expand on the history of Israeli civil society or the political system’s impact on it starting with the period of the Second Aliya and continuing with the founding of the State. The Yishuv leadership prior to the founding of the State, and the Israeli governments since, have sought to hold the reins of Israel’s society and economy, whether for ideological reasons or out of a desire to stay in power, and this has served greatly to limit civil society. Civil initiatives seeking to grow have found themselves dependent on public funds and on policies dictated by those in control of the public coffers. The process of awakening that has characterized civil society throughout the world, both in the West and in Eastern Europe, since the last quarter of the 20 th century, has not passed over Israel. Processes taking place in local Israeli reality conform to a worldwide trend, and Israel’s civil society is reaping the benefits. The processes that have been taking place around the world have been accompanied by the development of a variety of theories regarding civil society and its place within the 3 State. New definitions for old phenomena, the inclusion of new concepts in academic disciplines [and] the development of research and publication activities addressing the various changes occurring, serve to deepen our thinking and to raise new dilemmas. “Civil society” has taken on a new meaning, or, indeed, meanings, during the modern age.
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