This guide Includes responses to the most frequently asked questions regarding a private donation fund
1. What is a private donation fund?
A private donation fund, also known as a Donor-Advised Fund, is a progressive financial and philanthropic instrument that empowers donors to contribute larger amounts over time while maximizing tax benefits. By depositing the desired amount in your private fund, in either shekels or dollars, you receive a tax-recognized receipt instantly upon the deposit. This innovative tool, coupled with JGive's powerful digital platform, enables you to intelligently plan, manage, and monitor your donations in a convenient and efficient manner.
2. Why should I open a Donor Advised Fund?
Excellent question! Individuals often wish to contribute to charities and causes they are passionate about but may struggle with initiating the process, forming a giving budget, and often wait to be prompted to give. Similar to many other aspects of life, depositing into the fund enables you to proactively plan your contributions. The immediate receipt ensures you receive maximum tax benefits without the need to wait until the end of the year, eliminating the hassle of filing and chasing after receipts.
3. How does it work?
Deposit - Select the amount you wish to donate and deposit it using credit card, bank transfer, or check. Upon confirming the deposit, a recognized tax receipt will be generated in your personal area, available for download at any time.
Grant - Effortlessly support your preferred charities in seconds, using the deposited funds. Contribute at your convenience , either through a one-time donation or as a set recurring donation.
Speed and Efficiency - As the year comes to a close, consolidate all your deposits into one centralized receipt. This streamlined process enhances the speed and efficiency of the tax refund procedure, providing a quicker and easier experience than ever before.
4. How do you donate from the fund?
Deposit - Click on the "Fund your giving" button in your personal area, provide the necessary details, and choose your preferred payment method. Once the deposit is confirmed, the funds will be visible in your personal area.
Donate - You can contribute funds through the website in two ways. Firstly, on the charity/campaign page, and secondly, through your personal area by clicking on the "Make a grant" button and filling in the required details.
For a detailed guide on the subject, click here
5. When and how do you receive the tax receipt?
The tax receipt will be generated in your personal area immediately after confirming the deposit. Thanks to JGive's innovative platform and our special collaboration with the Tax Authority, we streamline the process, saving you the time typically spent on tracking and managing donation receipts. All the necessary information is conveniently available in your personal area on the website, eliminating the need for paperwork and various files. You can access all deposit receipts under the "Deposits" menu in your personal area.
6. Which charities can be donated to using a private donation fund?
Our donors have the flexibility to contribute to all Israeli non-profit organizations that hold approval under Section 46A and possess valid management authorization, even if they are not registered on our platform.
If the charity you wish to support is not listed among our 1800+ charities, the system will provide a link to donate to charities not featured on the platform. Upon clicking the link, you'll be prompted to enter the charity's name and number in the comments field, ensuring the donation reaches the correct destination. If you're unfamiliar with the official name or number of the charity, you can find this information on the Guidestar website. Simply click on the link in the pop-up window at the top of the page and search for the charity on the Guidestar website.
7. Will charities contact me after my donation?
As a donor, you have the discretion to determine which details, if any, are shared with the charity receiving your donation. Consequently, if you opt not to share your information, there's no expectation for the charity to contact you. Utilizing a private donation fund for grants offers a discreet donation method since, in practice, the funds are transferred by the Asor Foundation.
8. Can I see my deposit and grant history?
You can view your deposit and grant history easily. Access your personal area by clicking on the "My Account" button and then selecting "My Personal Account." Within this section, you'll find a comprehensive record of all your recent transactions, arranged in chronological order.
9. Is there a minimum for opening a Donor Advised Fund?
There is no minimum requirement for opening a private donation fund account. Anyone can initiate their private donation fund and commence thoughtful giving today. If your intended donation exceeds 50,000 NIS, feel free to reach out to us to explore joining JGive Platinum. By doing so, you can unlock a range of additional features and benefits tailored for your private donation fund.
For further information, please contact us at platinum@jgive.com.
10. What are the fees associated with a Donor Advised Fund?
JGive is a non-profit charity. Philanthropists who support us participate in the fund's operating costs, as well as charities that pay subsidized prices for the products we offer. Therefore, the use of funds of up to 50,000 NIS is free of cost on the part of the donors and we charge the charity to which you donated a 1.5% commission of the total donation transferred.
We offer customized commissions to JGive Platinum donors, for more details you are welcome to contact us at platinum@jgive.com
11. Is it possible to donate anonymously through my fund?
Yes, it is possible to donate anonymously through your private donation fund. This method provides an effective means of anonymous donation since, in practice, the funds are transferred through us (Keren Asor) to the intended charity. Whether you prefer to donate in your name, another name, or anonymously, you have the flexibility to choose which details you want to share when making a donation. If anonymity is of interest to you, this option is available.
12. How can a private donation fund service help donors who pay taxes abroad?
A private donation fund service can assist donors who pay taxes abroad in several ways:
International Collaborations: JGive has established partnerships with foundations in the USA, Canada, and England.
Tax-Recognized Receipts: When you donate through JGive using a foreign currency, you can receive a tax-recognized receipt according to the currency deposited. For instance, if you wish to receive a tax receipt recognized in the United States, you can deposit funds in American dollars (USD) through our affiliated fund, Friends of Asor in the USA.
This approach ensures that donors paying taxes abroad can contribute seamlessly, receive the appropriate tax documentation, and make their donations in a way that aligns with their tax obligations in their respective countries.
13. I already have a private endowment fund in the US, why do I need another one?
JGive serves as a donation platform for any non-profit organization in Israel. Therefore, if you already have a private fund or funds in the US, a private donation fund with JGive provides a seamless way to streamline and expand your philanthropic efforts in Israel. Opening a private donation fund at JGive eliminates the bureaucratic hurdles associated with international transfers. This allows you the opportunity to contribute to all the charities dear to your heart in Israel, swiftly and effortlessly, and at a considerably lower cost.
14. How can the funds I have abroad be deposited into my private contribution fund?
You can deposit funds from accounts abroad through bank transfer or check. The funds will be transferred to Israel within a few days and will be converted to New Israeli Shekels. The amount deposited into your private donation fund account will be the converted amount after the currency exchange.
15. How long does my fund stay open?
The tax authority has imposed certain guidelines for the private donation fund structure to ensure funds are utilized for the intended purpose. At the conclusion of the foreign tax year:
If the account balance is up to 5,000 NIS, the entire amount must be disbursed in the following year (additional contributions can be made to keep the account open).
For accounts with balances ranging from 5,000 to 50,000 NIS, a minimum of 35% of the donations should be distributed in the subsequent year.
In accounts with 50,000 NIS or more, a minimum of 5% of the total amount must be disbursed annually.
Rest assured, we will provide reminders as the tax year draws to a close
16. I noticed that JGive can assist with filing a tax return for me. How does that work?
JGive provides a centralized receipt download service for the annual report or submission to the tax authority. Additionally, we support online submission of the centralized receipt to the tax authority. It's important to note that while we don't directly file tax returns for our clients, we facilitate the process by enabling you to request a tax refund online without the need to physically visit the tax authority. Our aim is to simplify the administrative steps involved in the tax refund process.
17. Is it possible to open a joint account?
A private donation fund is an excellent tool for intergenerational giving. Involve your children and guide them in choosing charities to support. If you're experiencing a significant life event, consider starting a fund for your children to empower them in philanthropy and develop a strategic approach. Engage in discussions with your accountants and tax advisors to construct a charity structure that aligns best with your family's goals and values.
18. JGive works with both donors and charities, are there any conflicts that arise as a result?
JGive collaborates with both donors and charities. While we provide services to both, our operations are compartmentalized into separate departments. This structure ensures that each sector is served at the highest and most professional level, mitigating any potential legal or ethical conflicts. Our commitment is to provide the best experience for both donors and non-profits alike
19. How do I ensure that my information and funds are secure in your hands?
The JGive website is developed and operated by Keren Asor, established as a financial technology organization with ISO certification. This certification affirms our commitment to proper information management and continuous improvement of security systems. Our dedicated and experienced in-house development team ensures the highest security standards on the platform. Moreover, our governance structure includes a board of directors, a management committee, an investment committee, and a legal advisory team, all overseeing the activities of the funds for added assurance.
20. Will the name of the charity I donated to appear on the receipt?
The name of the charity you donated to will not appear on the receipt. This is because the receipt is issued at the moment of the deposit, and not when the grant is made. The receipt received at the time of the deposit will be registered in the name of the Keren Asor charity, the foundation behind JGive.
21. Is it possible to donate through the capital market?
Do you have alternative assets, such as stocks, real estate, or other valuables, that you'd like to donate? JGive Platinum donors can enhance their impact by contributing these assets while enjoying philanthropic tax benefits. Feel free to reach out to us at platinum@jgive.com to delve deeper into your options.