The  ABCs of NPOs @ PresenTense Tel Aviv Fellowship May 6, 2011 The   Nonprofit  Banker nonprofitbanker.com
OVERVIEW: <ul><li>Start a New Org vs Join Existing Org </li></ul><ul><li>When Starting Your New Org... </li></ul><ul><li>C...
Should I Start a New Org? <ul><li>Is my project truly new? </li></ul><ul><ul><li>“Want to Start a Nonprofit? Don’t” </li><...
New Org vs Existing Org: <ul><li>Incorporate: Nonprofit </li></ul><ul><li>Incorporate: For-Profit </li></ul><ul><li>Fiscal...
New Org vs Existing Org: <ul><li>Resources: </li></ul><ul><ul><li>“Comparing Starting a New Nonprofit w/ Fiscal Sponsorshi...
Benefits of Joining: <ul><li>Cost </li></ul><ul><li>Tax Exempt Status </li></ul><ul><li>Available Immediately </li></ul><u...
Benefits of Joining: <ul><li>Examples </li></ul><ul><ul><li>Perspectives Israel </li></ul></ul><ul><ul><li>Btzedek (L.I.F....
Benefits of Creating: <ul><li>Ownership </li></ul><ul><li>Control & Independence </li></ul><ul><li>Identity </li></ul><ul>...
Perhaps Both? <ul><li>Cost is the same </li></ul><ul><li>Benefits of using existing organization </li></ul><ul><li>While p...
When Starting Your Org... <ul><li>Advice from Peers  (Why reinvent the wheel?) </li></ul><ul><li>Lawyer* – Role of Notary ...
When Starting Your Org... <ul><li>Resources </li></ul><ul><ul><li>“Lessons from a Short-Lived Nonprofit” </li></ul></ul><u...
Charities in USA vs Israel: <ul><li>USA </li></ul><ul><ul><li>Registered as Companies  </li></ul></ul><ul><ul><li>Charity:...
Charities in USA vs Israel: <ul><li>Israel </li></ul><ul><ul><li>Charity is the name of the Registrar: </li></ul></ul><ul>...
Defining an Amutah: <ul><li>Amutah </li></ul><ul><ul><li>Amutah  – Knesset (Israeli Parliament) </li></ul></ul><ul><ul><li...
Banking for Nonprofits: <ul><li>Different Account Types </li></ul><ul><ul><li>Small Business ( עסק קטן ) </li></ul></ul><u...
Banking for Nonprofits: <ul><li>Credit </li></ul><ul><ul><li>Credit Line (Checking) </li></ul></ul><ul><ul><li>Loan </li><...
Banking for Nonprofits: <ul><li>Types of Security Available </li></ul><ul><ul><li>Cash/Securities/Land </li></ul></ul><ul>...
Banking for Nonprofits: <ul><li>Amutot & Credit </li></ul><ul><ul><li>Not (outright) illegal </li></ul></ul><ul><ul><ul><l...
Please Remember: <ul><li>This slide is not intended for advice, but rather for informational purposes only. </li></ul><ul>...
“ The foundation for doing good is doing well”  Peter Drucker
ABCs to Starting (Israeli) NPOs
ABCs to Starting (Israeli) NPOs
ABCs to Starting (Israeli) NPOs
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ABCs to Starting (Israeli) NPOs

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Questions & Considerations Facing a Fledgling (Israeli) Charity. The presentation was give to PresenTense social entrepreneurs both in Tel Aviv on May 6, 2011 and in Jerusalem on May 20, 2011 .

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ABCs to Starting (Israeli) NPOs

  1. 1. The ABCs of NPOs @ PresenTense Tel Aviv Fellowship May 6, 2011 The Nonprofit Banker nonprofitbanker.com
  2. 2. OVERVIEW: <ul><li>Start a New Org vs Join Existing Org </li></ul><ul><li>When Starting Your New Org... </li></ul><ul><li>Charities in USA vs in Israel </li></ul><ul><li>Banking for Nonprofits </li></ul><ul><li>Questions </li></ul><ul><li>(Links are highlighted blue and/or underlined) </li></ul>The Nonprofit Banker nonprofitbanker.com
  3. 3. Should I Start a New Org? <ul><li>Is my project truly new? </li></ul><ul><ul><li>“Want to Start a Nonprofit? Don’t” </li></ul></ul><ul><li>How am I different? ( SWOT Analysis ) </li></ul><ul><li>How can I support existing orgs? </li></ul><ul><li>Do I realize how hard it will actually be? </li></ul><ul><li>What is my motivation? </li></ul>The Nonprofit Banker nonprofitbanker.com
  4. 4. New Org vs Existing Org: <ul><li>Incorporate: Nonprofit </li></ul><ul><li>Incorporate: For-Profit </li></ul><ul><li>Fiscal Sponsor </li></ul><ul><li>Project </li></ul><ul><li>Stay Informal </li></ul>The Nonprofit Banker nonprofitbanker.com
  5. 5. New Org vs Existing Org: <ul><li>Resources: </li></ul><ul><ul><li>“Comparing Starting a New Nonprofit w/ Fiscal Sponsorship” </li></ul></ul><ul><ul><li>“Should I Formalize My Project as an NGO?” </li></ul></ul>The Nonprofit Banker nonprofitbanker.com
  6. 6. Benefits of Joining: <ul><li>Cost </li></ul><ul><li>Tax Exempt Status </li></ul><ul><li>Available Immediately </li></ul><ul><li>Administrative/Tech Support </li></ul><ul><li>Much less to lose </li></ul><ul><li>Fundraising assistance </li></ul>The Nonprofit Banker nonprofitbanker.com
  7. 7. Benefits of Joining: <ul><li>Examples </li></ul><ul><ul><li>Perspectives Israel </li></ul></ul><ul><ul><li>Btzedek (L.I.F.E.) </li></ul></ul><ul><ul><ul><li>Look at the last section on the page </li></ul></ul></ul><ul><ul><li>Shirat Devorah </li></ul></ul><ul><ul><ul><li>Originally a separate nonprofit, now part of a larger education institution </li></ul></ul></ul>The Nonprofit Banker nonprofitbanker.com
  8. 8. Benefits of Creating: <ul><li>Ownership </li></ul><ul><li>Control & Independence </li></ul><ul><li>Identity </li></ul><ul><li>Fundraising is cleaner and more transparent </li></ul>The Nonprofit Banker nonprofitbanker.com
  9. 9. Perhaps Both? <ul><li>Cost is the same </li></ul><ul><li>Benefits of using existing organization </li></ul><ul><li>While preparing your own for launch </li></ul>The Nonprofit Banker nonprofitbanker.com
  10. 10. When Starting Your Org... <ul><li>Advice from Peers (Why reinvent the wheel?) </li></ul><ul><li>Lawyer* – Role of Notary </li></ul><ul><li>Accountant* – Your Protector </li></ul><ul><li>Bank* – A Must for Tax Purposes </li></ul><ul><li>Board – Part of Creation Process </li></ul><ul><li>* Intended to describe the Israeli Nonprofit Sector only! </li></ul>The Nonprofit Banker nonprofitbanker.com
  11. 11. When Starting Your Org... <ul><li>Resources </li></ul><ul><ul><li>“Lessons from a Short-Lived Nonprofit” </li></ul></ul><ul><ul><li>“3 Statements that Change the World: Mission, Vision & Values” </li></ul></ul><ul><ul><li>“3 Tips for Creating a Powerful Nonprofit” </li></ul></ul>The Nonprofit Banker nonprofitbanker.com
  12. 12. Charities in USA vs Israel: <ul><li>USA </li></ul><ul><ul><li>Registered as Companies </li></ul></ul><ul><ul><li>Charity: Strictly a Tax Status </li></ul></ul><ul><ul><ul><li>Issued by the IRS </li></ul></ul></ul>The Nonprofit Banker nonprofitbanker.com
  13. 13. Charities in USA vs Israel: <ul><li>Israel </li></ul><ul><ul><li>Charity is the name of the Registrar: </li></ul></ul><ul><ul><ul><li>Company ( רשם החברות ) </li></ul></ul></ul><ul><ul><ul><li>Charity ( רשם העמותות ) </li></ul></ul></ul><ul><ul><li>Though either Registrar can have “Charities” in traditional sense </li></ul></ul>The Nonprofit Banker nonprofitbanker.com
  14. 14. Defining an Amutah: <ul><li>Amutah </li></ul><ul><ul><li>Amutah – Knesset (Israeli Parliament) </li></ul></ul><ul><ul><li>Nihul Takin – Registrar of Charities </li></ul></ul><ul><ul><li>Seif 46 (Paragraph 46) – Tax Authority </li></ul></ul><ul><ul><li>Mosad Tziburi (Public Institution) – Tax </li></ul></ul><ul><ul><li>Melkar ( מלכ &quot; ר ) - Tax </li></ul></ul>The Nonprofit Banker nonprofitbanker.com
  15. 15. Banking for Nonprofits: <ul><li>Different Account Types </li></ul><ul><ul><li>Small Business ( עסק קטן ) </li></ul></ul><ul><ul><li>Big Business ( עסק גדול ) </li></ul></ul><ul><ul><li>Trust Account ( חשבון נאמנות ) </li></ul></ul>The Nonprofit Banker nonprofitbanker.com
  16. 16. Banking for Nonprofits: <ul><li>Credit </li></ul><ul><ul><li>Credit Line (Checking) </li></ul></ul><ul><ul><li>Loan </li></ul></ul><ul><ul><li>Bank Guarantee </li></ul></ul><ul><ul><li>Credit Card </li></ul></ul><ul><li>BTW, even Checks are considered a form of credit </li></ul>The Nonprofit Banker nonprofitbanker.com
  17. 17. Banking for Nonprofits: <ul><li>Types of Security Available </li></ul><ul><ul><li>Cash/Securities/Land </li></ul></ul><ul><ul><li>Open (without any security) </li></ul></ul><ul><ul><ul><li>Even against a Contract or expected Donation </li></ul></ul></ul><ul><ul><li>Personal Guarantee </li></ul></ul><ul><ul><ul><li>Still considered “Open Credit” </li></ul></ul></ul>The Nonprofit Banker nonprofitbanker.com
  18. 18. Banking for Nonprofits: <ul><li>Amutot & Credit </li></ul><ul><ul><li>Not (outright) illegal </li></ul></ul><ul><ul><ul><li>Dependent on By-Laws and protocols </li></ul></ul></ul><ul><ul><li>Riskier (than loans to individuals) </li></ul></ul><ul><ul><li>Tachlis : Yes or no? Depends </li></ul></ul>The Nonprofit Banker nonprofitbanker.com
  19. 19. Please Remember: <ul><li>This slide is not intended for advice, but rather for informational purposes only. </li></ul><ul><li>This slide may not contain everything available on the various topics covered nor may it be longer up-to-date. </li></ul><ul><li>Please confer with your lawyer, accountant and/or Board of Directors to discuss how best to implement the ideas mentioned here. </li></ul><ul><li>Thank you for your time. </li></ul>The Nonprofit Banker nonprofitbanker.com
  20. 20. “ The foundation for doing good is doing well” Peter Drucker

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