This renewed focus may make Israeli charities that get funding from the US a little jittery – particularly following the IRS’s release of two private letter rulings (2010 and 2012) that denied exemption to new organizations seeking exemption for American charities that planned to do fundraising for Israeli charities. In any case, it should serve as a wakeup call to all American charities that conduct activities internationally that they need to strictly comply with the law and must avoid serving as a mere “conduit” to their foreign grantees.
“Why or why not should one be incorporated?” is the question American lawyer Don Kramer asked in his Weekly E-Newsletter back in 2010.
For Mr. Kramer, the question is a legal one. The pros and cons that he outlines deal with personal liability and procedural/substantive questions. His fantastically succinct answer refers to state statute and case law.
For some, incorporation is relevant not because of legal concerns but rather taxation benefits. Others might contemplate incorporation through the lense of fundraising and its effects on donors. And yet to others, the act of incorporation or registration is simply a question of time and money — lacking either of the two might automatically render incorporation as an unwarranted expense.
As a banker, and more specifically, as a banker that deals with international nonprofits, I’m interested in easing a charity’s ability to open and manage a bank account.
So like any good Jew, I’ll answer a question with a question. When seeking to solve the riddle of “Should I incorporate?” I ask the following: Will your charity operate internationally?
If the answer is yes, then incorporate. It will make banking a whole lot easier.
This week’s topics include: U.S. Regulations • Jewish & Israel • Management & Strategy • Fundraising
This week: Jewish Federations’ New GPT Directive • Jewish & Israel • Management & Strategy • Fundraising & Marketing • Social Media & Internet
I was dismayed when I heard that some American (and European) Foundations are requiring amutot [Israeli nonprofit organizations] to have the Se’if [Paragraph] 46a status, which declares donations to a charity to be tax-deductible.
This latest phenomenon demonstrates a lack of understanding of the intricacies of international nonprofit regulations and makes it harder for worthy Israeli charities to raise money abroad.
Online donations are rising every year, becoming an increasingly important fundraising tool for nonprofit organizations. To facilitate the growing demand and varied needs of charities, the number of online donation processors has been expanding accordingly.
As a result, charities have expressed their difficulty in sorting through the nuances and assorted extras to find the online solution(s) that’s right for them.
Which was why I was thrilled to co-produce an event early in July that hosted representatives from the leading Online Donation Processors here in Israel (and the world); including Paypal Israel, IsraelGives, Taramta, Give2Gether, and Tranzilla.
So which donation processor is right for you? Well, naturally, it depends on the particular fundraising-priorities for your organization.
This week: United States • Jewish & Israeli Sector • International • Governance & Strategy • Fundraising & Marketing • Social Media & Internet
Paypal is one of the leading Internet-payment options in the world for for-profits and nonprofits, alike. With only a PayPal logo and some code easily inserted onto a website, payments are a breeze. And with over 230 million PayPal users worldwide, the chances are good that your customer or donor either already has a PayPal account or trusts the company enough to register for a new one.
Combine the above with the one percent discount PayPal offers qualifying charitable organizations and you’re looking at a strong argument why PayPal should be the online payment-system of choice — for local donations.
However, for international fundraising, PayPal’s “cross-border fees” should prompt nonprofits to tread carefully before jumping head first into this particular pool.
Since early January of this year, the topic of Funding from Foreign Governments to Israeli NGO’s (Non-Governmental Organization) has been making headlines. Two initiatives promoting Transparency though in very different contexts — a proposal put forth in January and a bill approved in February — have politicians, nonprofits, and European Governments lamenting the destruction of democracy and human-rights in Israel.
However, the pursuant rhetoric, innuendos, politicking, and here-say makes it near impossible to filter out fact from fiction and to distinguish these two very different initiatives.