The Labor and Welfare Committee held a discussion Wednesday morning on assisting welfare associations that have been assisting citizens in various fields and places in routine times, and even more so since the outbreak of the war.
Committee Chairman MK Israel Eichler said: "In this war, it has been proven that the welfare of many Israeli citizens depends on at least 50% on the third sector, associations and volunteers who are everywhere and at all times, for the service of the government and for the benefit of citizens. Welfare personnel also work around the clock, but they are few and very busy all year round, and even more so during wartime. If it weren't for the NGOs, they wouldn't be able to fulfill their missions."
Representatives of various NGOs came to the discussion and said that since the outbreak of the war, donations have greatly decreased, while the needs on the ground have increased drastically.
Yosef Whitman, CEO of the Association of Non-Profit Organizations in Israel, said: "Welfare associations have actually been hit twice. On the one hand, routine activity has been discontinued or changed, and on the other hand, many additional needs and activities have been added. The Business Assistance Framework excludes most nonprofits because it includes only a nonprofit that is a business, not one that enjoys donations or support. In practice, only about 23% of welfare organizations will be included in it. The rest are currently facing a broken trough."
Civilian assistance. Brothers in Arms, Photo: Yossi Zeliger
In Rahat, packing food for those who need it, photo: Dudu Greenspan
The third sector holds a significant part of the help to citizens in the country, Photo: Yossi Zeliger
Efrat Lichtman, CEO of Larger Than Life, a non-profit organization that helps children with cancer, said: "The support we receive during routine life covers only 10% of the cost of sterile kindergartens we run for the children, and the rest of the activities have no support at all. In addition, we pay the state a payroll tax of 7.5% on employees. If the state gives it up right now, it will already be a big help. If nonprofits put workers on unpaid leave, the state will have to pay them unemployment benefits. It's better to keep them in the workforce, because it's precisely at this time that we need them."
Ron Barkai, one of Israel's civil leaders, said that out of a turnover of NIS 100 billion for all third sector NGOs in Israel, the state funds only 4%. Barkai expressed support for the idea of abolishing the payroll tax, noting that it could be carried out by temporary wartime order of the Minister of Finance and did not require legislation. According to him, this option will provide immediate assistance to about 10,000 NGOs.
Eichler: "It is appropriate to freeze the payroll tax at the moment"
Already during the discussion, Committee Chairman MK Eichler instructed the committee members and professional teams to examine the possibility of temporarily canceling the payroll tax vis-à-vis the Ministry of Finance and to act immediately to advance the aid outline: "The ministries of welfare and finance need to understand the magnitude of the hour. In light of the fact that there is under-support for NGOs to begin with, it is appropriate to freeze the payroll tax at the moment and formulate as soon as possible an outline of assistance to NGOs that will ensure and encourage the continuation of their most important activities, precisely at this time."
MK Israel Eichler, Photo: David Vaknin
Dalia Lev Sadeh, Director of the Community Resources Division at the Ministry of Social Affairs: "The scope of the Ministry of Social Affairs' activity with the NGOs is very broad and most of the services are operated by them. All existing contracts are valid and everyone receives payments as usual. There is also approval for placement and double budgeting for children who moved elsewhere due to the war. Boarding schools and out-of-home frameworks also received a budget increase if they moved elsewhere. We are preparing to deploy services within the hotels, and for this purpose we will embark on expanding new activities and engagements with non-profit organizations. In addition, new contracts have already been established with various NGOs according to the needs of the war, and the Ministry is pushing to establish an outline for supporting NGOs vis-à-vis the treasury. We believe it will happen soon."
We invite nonprofits to reach out and reflect the needs
Tair Rabuhin, Welfare Referent at the Ministry of Finance: "We have committed to presenting to the Finance Committee by next week an outline of assistance to non-profit organizations, and we invite NGOs to contact us and reflect the needs. In addition, we are in regular contact with the Ministry of Social Affairs and Social Affairs and they receive a response to all the demands that arise. There is no budget increase for NGOs, but specific additions to projects such as food security, for example, or expansion of existing contracts as needed." Regarding the cancellation of the wage tax, she said: "At the moment, the direction is to provide solutions in the form of support or compensation for the harm or additional work that the associations are doing because of the war, and not to provide solutions in other places that are not related to the harm, because it creates distortions."
Ezer Mizion distributing coffee in a hospital in Haifa (archive), photo: Michel Dot Com
Other NGOs including Petachon Lev, Lehav for Premature Babies in Israel) and the Center for the Blind in Israel took part in the discussion and presented the difficulties they face in the face of the decline in donations and the increase in the needs of those assisted.
Naftali Kober, Chairman of Ezer Mizion: "There has been a significant decline in donations during this period. Our helpers are the elderly, sick children and more, and they need more help now than in normal times. Just this morning we received a request to help evacuate three disabled people in Kiryat Shmona and sent our ambulances, which are currently operating almost 24 hours a day. Government support covers only 4% of our total expenses during the year, along with NIS 200 million a year from donations from Israel and around the world."
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