Jun 2, 2016
tzedaka organizations to get hit with new fees
The Bank of Israel has new directives regarding converting coins to bills. There will be a significant fee (fluctuating a bit from bank to bank) for such conversions. Bank of Israel themselves will do it for free, but maxing out at 5000nis worth, or a maximum of 1000 coins.
Representatives of tzedaka organizations are worried that this will naturally hurt them in the pocket. They get a lot of coins in their collections, and they would now have to pay fees to convert it all. They asked MK Maklev for assistance in the matter and Maklev met with the Bank of Israel director. Maklev explained the concern and he told the coin people in the Bank of Israel to be especially attentive and attuned to the tzedaka organizations needs and do whatever possible to assist them.
Maklev explained that by nature the tzedaka organizations receive a lot of coins, while the donors all want to know that their money is going 100% to tzedaka. Therefore the tzedaka organizations need special dispensations to make their jobs easier so the tzedakas won't be harmed.
source: Behadrei
That is all good and true, but without changing the rules, nobody is going to help. Nobody will break the rules of the Bank of Israel just because the director said to be helpful. He is going to have to have his board actually change rules if he wants to assist.
Regarding Maklev's claim, it is true, but silly. Yes, paying fees for conversions will take money out of their pockets, but so does stationary and secretaries and directors and printing and distribution of pamphlets and credit card fees and toner for the office printer and photographers for the campaigns and a million and one other things the various kupot pay for. Nobody expects that 100% of their money is going to tzedaka, as everyone realizes it costs money to run an office and run campaigns. Even more so, their money is still counted as going to tzedaka, because it is being spent on things that help them raise money for tzedaka. Paying the little bit extra in fees does not seem to make a big deal - it is probably minor compared to all the other expenses they incur on a regular basis. And they could probably find donors to cover those costs just like they find donors to cover the cost of office supplies or of printing pamphlets or other things.
and talking of lots of coins, this just happened a few days ago, though it really happens relatively often
Representatives of tzedaka organizations are worried that this will naturally hurt them in the pocket. They get a lot of coins in their collections, and they would now have to pay fees to convert it all. They asked MK Maklev for assistance in the matter and Maklev met with the Bank of Israel director. Maklev explained the concern and he told the coin people in the Bank of Israel to be especially attentive and attuned to the tzedaka organizations needs and do whatever possible to assist them.
Maklev explained that by nature the tzedaka organizations receive a lot of coins, while the donors all want to know that their money is going 100% to tzedaka. Therefore the tzedaka organizations need special dispensations to make their jobs easier so the tzedakas won't be harmed.
source: Behadrei
That is all good and true, but without changing the rules, nobody is going to help. Nobody will break the rules of the Bank of Israel just because the director said to be helpful. He is going to have to have his board actually change rules if he wants to assist.
Regarding Maklev's claim, it is true, but silly. Yes, paying fees for conversions will take money out of their pockets, but so does stationary and secretaries and directors and printing and distribution of pamphlets and credit card fees and toner for the office printer and photographers for the campaigns and a million and one other things the various kupot pay for. Nobody expects that 100% of their money is going to tzedaka, as everyone realizes it costs money to run an office and run campaigns. Even more so, their money is still counted as going to tzedaka, because it is being spent on things that help them raise money for tzedaka. Paying the little bit extra in fees does not seem to make a big deal - it is probably minor compared to all the other expenses they incur on a regular basis. And they could probably find donors to cover those costs just like they find donors to cover the cost of office supplies or of printing pamphlets or other things.
and talking of lots of coins, this just happened a few days ago, though it really happens relatively often
------------------------------------------------------
Reach thousands of readers with your ad by advertising on Life in Israel
------------------------------------------------------
Subscribe to:
Post Comments (Atom)
Related Posts
Does this apply to converting coins to bills, or to depositing coins? I would imagine that tzedaka organizations do the latter, not the former.
ReplyDeleteIn america, banks charge for depositing (and withdrawing) cash coins and bills. And the charge isn't peanuts. 30cents per $100, i recall. For some businesses, its a significant expense. As it is for tzedakah organizations.
ReplyDelete2. I recall tzedakah organizations pay almost 90% to tho collecting 'pushkah boxes, unless they can get volunteers (or the pushkah box location empties the box and sends a check (and gets a receipt and deduction. Personally, i see no eal problem.)
90%!!!! Remind me never to put money in those pushkas.
Delete