NPO classification as a means for regulatory differentiation

Adv. Yaron Keidar

A joint research by Sheatufim and the BRM Institute of Advanced Research

The existent argument in Israel does not differentiate between the different types of nonprofit organizations, but rather treats them equally and demands equal obligations from all organizations regardless of their size, financial turnover, areas and nature of activity. In this situation, the government authorities are obligated to operate in an equal manner without any reference to the large differences between the organizations. Such a policy often creates over complication and prevents flexibility in government policy towards nonprofit organizations. In this research an international comparison was led between various methods of categorizing nonprofit organizations in different countries around the world. As a result of the comparison, common principles were found, from which various definitions and criteria can be proposed for adoption by the Israeli legislation on nonprofit organizations; definitions and criteria that will allow the creation of regulations that are suited to the differences between the organizations and will allow the existence of separate government policies for different types of organizations.

Research Purpose: To create a classification for nonprofit organizations (NPOs) that will allow the creation of different regulations for their operation and a different regard by the government and the public.

2008 Survey - The relationship between nonprofit organizations and foundations in Israel's Third Sector

Yaron Yavelberg

Sheatufim (Do-Et Institute for Sheatufim)

This survey examined how nonprofit organizations perceive charitable foundations and the work process with them. The questionnaire referred to various aspects of the relations between nonprofits and foundations, such as: Categorization of foundations, desirable changes in the work relations, difficulties and areas for improvement. As in every relationship between a provider and a receiver, the relationship between nonprofit organizations that rely on fundraising and charitable foundations that provide funding, both in the field and in research, is one of a complex, tense nature that requires a lot of mutual trust. The complexity of the relations between nonprofits and charitable foundations can be witnessed all the way from the field work, through the research, to the government's policy on this issue. Sheatufim's activity over the past two year has led to increased demands for a structured work protocol that can reflect a clear, stable and trust-worthy relationship between nonprofit organizations and foundations. A series of meetings with nonprofit focus groups and a professional forum of Israeli foundation managers have raised the need for a serious examination of the relations between nonprofit organizations and foundations in Israel, and the creation of a platform for dialogue between the two sides and a discussion on their relations.     

Survey Purposes

• To understand the attitudes of nonprofit organizations towards the work process with philanthropic bodies.
• To map the strengths and weaknesses of the nonprofit-foundation relations in Israel in order to create a platform for dialogue between both sides.
• To independently reflect to charitable foundations and philanthropists how the work process is perceived by nonprofits, in order to contribute to the professionalization of philanthropic bodies.

What do foundations want? The examination and follow-up processes foundations perform before and after approving grants

Yonit Levanon

A joint research by Sheatufim and the Midot Organization

The activity budget of most social organizations in Israel relies significantly on funding from various foundations in Israel and overseas. These foundations invest many resources in sorting and location the organizations and projects in which they are interested in investing. Foundations want to insure that their investment in the community will be as meaningful and efficient as possible, and therefore perform a meticulous examination of every organization and project they support. On the other hand, the social organizations must invest a lot of time and effort in working with the foundations and fulfilling the requirements of each specific foundation. Most of the organizations submit dozens of grant requests each year to a large variety of foundations and each foundations has its unique requirements and request forms.

In the beginning we thought to study the project examination methods of the funding bodies in Israel, while relating to the three main groups: The public sector, the business sector, and philanthropic foundations. However, the more we progressed with our research, the more we realized how different these three groups are. Therefore we decided to focus at this stage on the examination of projects by philanthropic foundations. Also, in order to gain a primary introduction to the examination processes within the public and business sectors, three funding bodies that represent these groups were chosen (two business agents and one public one).

Research Purpose: Reflecting the similarities and differences in the examination and follow-up processes of foundations in order to develop tools and mechanisms for the improvement, streamlining and sharing of work processes.

Management that influences performance improvement in the Third Sector: What can be learned from successful managers in the business sector

Ronit Amit

Over recent years Israel's third sector has become a key player in the socio-economic field of the State. The increase in the sector's size and its desire to influence Israel's society places the nonprofit organizations before serious organizational and managerial challenges. Alongside their growing presence and influence, these organizations are in constant competition over resources, which require them to prove high standards of conduct, and expressions such as "accountability" and "transparency" have become frequent in almost every discussion in the field and in the academy.

Israel has also seen a recent up-rise in Israeli philanthropy deriving mainly from the leadership of the business sector. This leadership desires to duplicate its successful managerial experience and expects the third sector organizations to operate according to the codes customary by the private sector.

We cannot describe the third sector without relating to the current financial crisis in the world. Much like many organizations across the world, the nonprofit organizations in Israel are also currently undergoing a war of survival. They are required to deal with a larger number of clients, with a smaller amount of resources. This trend confronts their managers with a significant challenge and requires them to present high managerial performances.

Research Purpose: To develop new knowledge for nonprofit managers so that they will be able to maximize and enhance their managerial skills and thus lead their organizations towards the realization of their goals and increase their efficiency.