In the face of Israel's security situation and the recent civil crisis, the spirit of giving and donation has reached unprecedented peaks. Individuals, corporations and foundations from Israel and around the world generously contributed to a diverse range of vital social initiatives.
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For donors, especially major contributors, leveraging tax benefits is part of maximizing a giving strategy, which becomes even more relevant as the year draws to a close. JGive Platinum’s DAF offers an innovative solution for donors seeking to establish private giving funds, which range from 50,000 NIS to tens of millions of shekels.
Strategic planning of donations, alongside optimal utilization of tax benefits, embodies the significant advantage of JGive Platinum. It enables the donor to deposit funds earmarked for future donation into their account and immediately receive a receipt on the whole amount; over time, they can grant funds to their intended destinations. This facilitates a well-organized and strategic giving plan. Donations through JGive provide recognized receipts for tax purposes in several countries: The U.S., Canada, England, and, of course, Israel.
Fiona Darmon, founder and managing partner at SunVest Capital Partners as well as a member of JGive’s Social Board, states that "donors managing private funds demand professionalism, clarity of information, automation, easy integration with other platforms, transparency, and efficiency for tax credit purposes." According to Darmon, "these experienced donors can benefit from JGive Platinum as a technological platform that combines easy donation and a professional support team."
Yamit Taragan Nahmani, director of Israel philanthropy at the Aviv Foundation which was established in 2016 in the United States and invests in numerous social organizations in Israel, mentions that "since the foundation is based in the U.S., we needed a solution that provided us with tax benefits in the U.S., operated legally in Israel, and was highly efficient in terms of planning and management." Aviv Foundation has been using JGive Platinum’s platform since 2021 for continuously donating both small and substantial sums.
“Moreover, JGive's staff continuously assists and supports Platinum fundholders, ensuring that there is always someone to consult with, to help solve problems, to find solutions for organizations without the requisite Section 46a and to ensure that our partners have all the required and valid documentation so that the charities receive the donation, and we get the tax benefit," says Targan Nahmani.
Planning philanthropy to make an enduring impact
Another important added value of a private fund like the Platinum DAF is "intergenerational giving within a family," says Darmon. "A family fund allows for educating and passing down the legacy of giving to future generations."
In addition, funds managed in a DAF allow for maximum giving due to the ability to invest the capital sitting in the account. "As part of smart and strategic giving, funds can be invested, and all profits go back to the fund without capital gains tax, thus increasing the final donation amount," says Darmon. "Another way to give smartly is to donate appreciated stocks, thus maximizing your giving since there is no capital gains tax."
JGive was established as a digital platform aiming to encourage the culture of giving to and in Israel by connecting unique bonds between charities, corporations, and donors. The various technological tools and solutions provided by JGive make it easier for each party in the equation to maximize their potential for giving and receiving, thereby increasing the impact and results of social initiatives.
The war brought an unprecedented spirit of giving; since the events of October 7, more than 170 million shekels have been transferred through JGive. In recent weeks, many donors are preparing for the "day after." They are trying to understand what the future needs will be like and what support will be necessary in various social areas such as financial, legal, and psychological assistance.
Darmon says, "we have seen a robust response across the board, initially in immediate aid relief for the most basic needs and later in strategic and more long-term assistance." Many JGive Platinum donors understand that the future need will be great and are therefore allocating significant funds for long-term goals. Darmon says, "we see donors who are now making deposits into their funds to ensure the tax benefit for the current year and in doing so prepare for next year, where many resources will be needed for recovery and renewal."
Targan Nahmani emphasizes that "many times there is a great response immediately after significant events like a war, but it's important to understand that the needs will continue later. Therefore, those who donate now should look at a goal that will make an impact in the long run as well."
Targan Nahmani adds that "for those who want to donate, I recommend finding the area that resonates most with them and finding organizations that provide a high-level response. It's important to get to know the organizations closely and not necessarily build something new if it already exists."
Darmon recommends "going to JGive and choosing a field close to your heart from a vast array of charities and campaigns. Thanks to our technology, you can find descriptions, transparency measures, videos, and stories so that you see where the donation is going, and therefore feel the joy and satisfaction of supporting a worthy goal."