U.S. Terminology

Defining a Conduit Organization (a.k.a. Fiscal Agent or Intermediary)

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When grants or gifts cannot be made directly to a recipient (individual or organization) many times Fiscal Agents are used. These Intermediate charities are commonly referred to as Conduit Organizations because they are not the intended final recipient, rather just a pass-through.

With the right due diligence, control, and by-laws, this type of seemingly-indirect charity can be perfectly legal and advisable. (Please consult your lawyer to see if this solution is right for you or your organization.)

One such group that uses Conduits is such a way, is a charity located outside of the United States (and, thus, not considered tax-exempt in the eyes of the IRS) that is looking to collect donations from American citizens.

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Israel Terminology

Defining an Amutah [Israeli Charity]

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"Harry" by Thomas Hawk

The Hebrew word amutah, referring to a charity in Israel, is used both correctly and incorrectly to describe just about any nonprofit organization registered in the country. But wait, it get’s more confusing. Not all charities are charities, sometimes they’re companies. And sometimes a charity isn’t tax-exempt while a company might be.

Confused? Don’t worry. In this post I’ll cover the various terms and statuses available to Israeli charities — along with links to government websites — that will help you find the answer to the bottom-line question burning in your mind: Is this organization worthy of my donation?

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Banking, Best Practices

6 Reasons "Friends of" Orgs Should Bank Abroad

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The fiscal requirements of an American charity have become more complicated in recent years. Increased scrutiny from the IRS, more intricate tax documentation, the recent economic crisis, and donors’ need for transparency, are just a few of the challenges facing the sector. When a charity operates internationally these difficulties are only exacerbated. These global organizations are expected to be familiar with regional and global charity regulations, comfortable working in foreign languages and cultures, able to cope with inherent increased expenses, and capable of forging new relationships – all while maintaining a high level of accountability.

A powerful tool in helping a “Friends of” organization cope is an additional account abroad in the country in which it operates. When used to its potential, this kind of account is invaluable.

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Best Practices, Fundraising

The Carmel Fire & Haiti: No Need to Reinvent the Wheel

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Jews around the globe are mobilizing to donate to help fight the effects of the recent fire in Israel’s Carmel Forest.

One of the outcomes of the Haiti Earthquake (January 12, 2010) is an in-depth case study in disaster-relief giving. Hence, those donating to Carmel Fire relief efforts need not reinvent the wheel and can rely on the many lessons learned just 11 months ago.

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Best Practices, Case Studies

Guest Post: Lessons from a Short-Lived Nonprofit

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Guest Post: Recently, within a matter of months, I opened and then proceeded to close a amutah [Hebrew referring to a registered charity in Israel] here in Israel. I wanted to open up a seminary [religious school] and, with the advisement of experts in the field, decided it would be best for the seminary to run under its own administrative body. Unfortunately, we did not come to this understanding until late into the process of developing the seminary, which meant that we were rushed to register the amutah, file in the tax authorities, and open a bank account. I learned many things in this process that perhaps can help others looking to start their own non-profit organizations.

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Banking, Best Practices

3 Dangers that Money-Changers Pose to Charities

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In Israel, more than in most countries, foreign currency is an integral part of every facet of the country’s daily economic enterprises – private, business, and public sectors, alike.

A recent released study showed that 53% of financial support to Israeli charities came from abroad. Thus, making foreign exchange exchange fees, rates, and processing times of the utmost importance to Israeli charities.

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Israel Terminology

Defining a Chevrah LeTo’elet Hatzibur [Public Benefit Company]

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“What do you mean that Israeli charities can be registered as companies?”

That was the question someone asked me last year that that had me thinking to myself, yet again, that charity legal/tax structure is a language onto itself and should require its own Ulpan.

And so, I shall now endeavor to explain the somewhat contradictory concept of a Chevrah LeTo’elet Hatzibur [Public Benefit Company].

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