Tag Archive for American Friends

Beyond Right or Wrong: 3 Lessons from Magen David Adom


Once again, the Israeli nonprofit organization Magan David Adom (MDA) and it’s American supporting charity, American Friends of Magen David Adom (AFMDA), are in the news after all five members of AFMDA’s executive board resigned, stating that they “refuse to abdicate or compromise in any way our fiduciary duty to AFMDA and its donors.”

First, allow me to say that writing this piece is painful; it is disturbing (to put it mildly) that an organization that has such a positive impact on Israel’s daily life is getting such negative press.
Two, which side is right or wrong is of secondary importance. Regardless how the situation plays out in the near or distant future, organizations can learn RIGHT NOW from the very public debates raging between the American and Israeli arms.

Specifically, the core issues — defining roles, trust, independence, and personnel — are the same faced by all international organizations, and, as such, can provide a constructive case-study for nonprofits, their board members, and their donors.

4 Reasons Why NOT to Establish an "American Friends of" Organization

Israeli charities (amutot in Hebrew) rely on donations from overseas – no secret there. Many foreign-based charities choose to create an American based nonprofit, more commonly referred to as a “Friends of” organization so donations can be tax-deductible vis-a-vis the American Federal Government. (In a previous post, I spoke about IRS trends when a “Friends of Organization” is applying for tax-exempt status.)

However, it could be that establishing a “Friends of” organization is not in your charity’s best interest. The following are some considerations that elaborate on: Why not to raise funds through a U.S. registered “Friends of” Organization?