_a.jpg "צילום: ישראל ברדוגו")
Food distribution center (archives)
Photo: Israel Bardugo
Report: 400 social groups face bankruptcy
Israeli Civic Leadership Association holds emergency conference, reveals hundreds of relief groups face dire operational difficulties in a time when dependents' numbers increase
The Israeli Civic Leadership Association (ICLA) held an emergency conference on Monday and revealed that some 400 social associations in Israel may go bankrupt as a result of the financial crisis.
The ICLA is an umbrella organization for all of Israel's nonprofit associations.
The data presented in the conference indicated that the social groups have found themselves in somewhat of a vise: On one hand, the financial crisis has increased the number of people dependent on their services; and on the other, their donations have scaled down and they face dire operational difficulties.
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The ICLA also presented a poll conducted among 200 associations regarding the third sector. The survey was carried out by the Israeli Center for Third-Sector Research in the Ben-Gurion University of the Negev, and Shatil, the New Israel Fund's Center for Social Change Organizations in Israel.
Israel, like most democracies, is made up of three sectors: The public sector, made up of national and local State organizations; the business sector, which consists of for-profit corporations; and the third sector, which links the public and private sectors to families and individuals.
'Time for government action'
The third sector in Israel currently employs about 500,000 people. According to the numbers presented in the poll, 35% of the associations have begun downsizing personnel. Overall, 81% reported financial difficulties and one of seven are "in grave financial risk," which may lead to them closing their doors.The majority of the groups (75%) expect the government to grant them financial aid in order to stay afloat, since many of them supply services no longer provided by state facilities.
"Three plagues have struck the third sector in Israel." Dr. Yaron Sokoloff, who heads the Israeli Civic Leadership Association, said Monday. "The drop in dollar rates. The philanthropic crisis emanating from the financial crisis and the ineptness of the Israeli government."
The government, he continued, "had nothing to do with the first two, but the third one is under its control. Unfortunately, besides offering sympathy, nothing has been done so far.
"I urge the government to exercise responsibility and save the third sector," he said.
