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State of Israel

Media [email protected] www.cbs.gov.il Fax: 02-6521340

____________________________________________________________________________________________________________Jerusalem

September 3, 2019271/2019

Income and Expenses of Non-Profit Institutions 2016-2018

New! The current publication reveals additional data on income and expenses of NPIs excluding health funds and hospitals. The product of non-profit institutions (NPIs) comprised 5.4% of the Gross Domestic

Product (GDP) in the years 2017-2018 (preliminary estimates) and 5.3% in 2016.

According to the latest survey for the year 2016, total current Income of NPIs in 2016 amounted to NIS 146.3 billion. 50.3% of the total income derived from governmental transfers, 34.1% sale of services, 7.8% donations received from abroad, 6.9% donations received from households corporations and NPIs in Israel and additional 0.9% derived from property income.

In 2016, total current expenses of NPIs amounted to NIS 144.9 billion. The share of labour cost out of total expenses was the highest in education and research (64%), and the lowest in philanthropy and voluntarism (13%).

In 2016, there were 473 thousand employee jobs in NPIs, mostly in the field of education and research (48.3%); and 480 thousand volunteers who worked mostly in social services (33.0%).

Data are based on the NPIs survey, covering all NPIs (non-profit institutions) in Israel, which are economically active. In accordance with the System of National Accounts, NPIs are defined as “legal or social entities that were established for the purpose of producing goods and services, whose status does not permit them to be a source of income, profit, or other financial gain for the units that establish, finance, or control them” (System of National Accounts, 2008).

In accordance with the International Classification of Nonprofit Organizations (ICNPO) developed at Johns Hopkins University, the NPIs were divided into eleven fields of activity: 1) culture, recreation and sports, 2) education and research, 3) health, 4) social services, 5) environment, 6) housing and development, 7) advocacy and politics, 8) philanthropy and voluntarism, 9) international activity, 10) religion, and 11) professional associations.

The latest survey provides data for 2016. Data for the years 2017-2018 are preliminary estimates (marked with an asterisk). Updated data for the years 2013-2015 are presented as well (marked with the letter R)

Written by Dr. Osnat Hazan, Macro-Economics Statistics for more details statistics center 02-6592666

https://www.cbs.gov.il/

mailto:[email protected]

Kindly notice:(1) Data published in this media release relates only to current income and expenses,

excluding capital income and investments. However, in previous releases data until 2012 included capital income.

(2) According to OECD guidelines, since 2013 education for children aged 0-3 are excluded from social services and included in education and research.

The Share of NPIs' Product and Employee Jobs within the Israeli Economy, 2016-2018 (Tables A-B)In 2018, the total gross product of the non-profit sector, i.e., the added value to the

economy by this sector, amounted to NIS 72.3 billion. In 2018, the gross product of NPIs

increased (in current prices) by 5.3% compared to the previous year: and in 2017 it

increased by 6.2%. NPIs' share of the GDP was 5.4% in the years 2017-2018 and 5.3% in

2016.

Table A - Product of non-profit institutions and the Israeli economy, 2013-2018NIS million at current prices, unless noted otherwise

Year NPIs(1)

Total economy

The share of NPIs' GDP out of

total economypercentage

R2013 55,545 1,056,638 5.3R2014 58,137 1,107,577 5.2R2015 61,220 1,165,324 5.32016 64,633 1,224,951 5.32017* 68,618 1,271,555 5.42018* 72,263 1,330,618 5.4

(1) Excluding the value of voluntarism

In 2018, employee jobs in NPIs amounted to 520 thousand, which comprised 14.1% of the

total employee jobs of Israelis in the economy (excluding foreign workers and employees

from the Palestinian Authority). The share of NPIs' employee jobs out of total jobs in the

economy in the years 2016 and 2017 was 13.5% and 13.7% respectively.

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Income and Expenses of Non-Profit Institutions 2016-201803/09/2019

Table B - Employee jobs in non-profit institutions and in the Israeli economy, 2013-2018Thousands, unless noted otherwise

Year NPIs Total economy

The share of NPIs' employee jobs out of total economy

percentageR2013 430 3,205 13.4R2014 442 3,293 13.4R2015 459 3,386 13.62016 473 3,494 13.52017* 494 3,592 13.72018* 520 3,675 14.1

NPIs' Income (Table C, Diagrams 1-3)Total income of NPIs in 2018 amounted to NIS 163.3 billion, an increase of 6.2% over 2017

(in current prices), continuing an increase of 5.2% in 2017 over the previous year.

According to the survey for 2016, total income of NPIs amounted to NIS 146.3 billion. The

larger portions of income were recorded in the fields of health (43.8% of total NPIs income)

and education and research (27.0%). The remaining 29.2% were divided among the other

nine fields of activity, ranging from social services (7.7%) to international activity (0.1%).

The four primary sources of funding in 2016 were transfers from government (50.3% of

income), sale of services to the private sector and to the government (34.1%), donations

from abroad (7.8%), and donations from households, corporations and NPIs within Israel

(6.9%). This proportion of funding sources did not change much in the years 2017-2018.

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Table C - Income of NPIs by source of funding and field of activity, 2013-2018NIS Million at current prices

Field of activity

Year Total Transfers from

government(1)

Sale of services

(2)

Property income

Donations from

households corporations

and NPIsin Israel

(3)

Donations from

abroad(4)

Total R2013 125,716 63,148 42,682 2,037 8,875 8,974Total R2014 130,520 65,459 44,250 2,201 9,184 9,424Total R2015 137,600 68,836 47,160 962 9,328 11,314Total 2016 146,254 73,544 49,915 1,316 10,042 11,437Total 2017* 153,879 77,265 52,703 1,375 10,572 11,965Total 2018* 163,349 82,105 55,692 1,439 11,342 12,771Total

YearPercentages Percentages

Percentages

Percentages Percentages

Percentages

Total R2013 100.0 50.2 34.0 1.6 7.1 7.1Total R2014 100.0 50.2 33.9 1.7 7.0 7.2Total R2015 100.0 50.0 34.3 0.7 6.8 8.2Total 2016 100.0 50.3 34.1 0.9 6.9 7.8Total 2017* 100.0 50.2 34.2 0.9 6.9 7.8Total 2018* 100.0 50.3 34.1 0.9 6.9 7.8

Total 100.0 2016 2016 2016 2016 2016 2016Culture, recreation & sports 7.6 100.0 35.5 51.0 0.6 9.1 3.8Education & research 27.0 100.0 50.3 31.9 2.5 5.5 9.8Health 43.8 100.0 70.5 27.4 0.0 1.6 0.5Social services 7.7 100.0 7.6 54.6 0.2 24.3 13.3Environment 0.2 100.0 10.9 61.2 0.3 23.2 4.4Housing & development 1.1 100.0 25.9 61.6 0.1 10.5 1.9Advocacy & politics 0.7 100.0 11.6 14.7 0.2 39.5 34.0Philanthropy & voluntarism 5.8 100.0 14.2 34.5 2.3 8.0 41.0International activity 0.1 100.0 0.0 9.3 0.1 0.0 90.6Religion 4.1 100.0 25.4 25.8 0.1 27.3 21.4Professional associations 1.9 100.0 11.9 76.8 0.5 7.8 3.0

(1) Transfers from government include current transfers from governmental ministries, local authorities, and national institutions.

(2) Sales of services include sales to the private sector as well as sales to government (22.6% and 11.5% of income in 2016, respectively)

(3) Donations in Israel include current transfers from households and corporations in Israel, and transfers from other NPIs (estimated by NIS 5.4 billion in 2016).

(4) Donations from abroad Include current transfers from households and corporations from abroad.

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The majority of government transfers to NPIs in 2016 were allocated to the fields of health

(62% of government transfers), and education and research (27%). The rest nine fields of

activity received up to 5% of government transfers each. In the fields of health and

education and research, government transfers comprised 71% and 50% of NPIs' income,

respectively. However, the field of international activity did not receive any transfers from

the government. In the other fields government transfers comprised between 8% and 36%

of total income.

Diagram 1. Current transfers from government by field of activity, 2016

Health; 61.6%

Education & research,

27.0%

Culture, recreation & sports, 5.3%

Religion; 2.1% Rest; 4.0%

The majority of donations from Israel were allocated to social services (27%) and the

majority of donations from abroad were allocated to education and research (34%).

However, the fields of activity which are primarily supported by donations were international

activity (donations from Israel and abroad comprised 91% of the field's total income), and

advocacy and politics (74%). In the remaining fields of activity, donations comprised up to

49% of the income, the lowest being health, in which donations comprised only 2% of the

income.

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Diagram 2. Donations from households, corporations & NPIs in Israel by field of activity, 2016

Social services, 27.0%


21.4%Religion; 16.3%

Culture, recreation & sports, 10.0%

Health; 10.0%

Rest; 15.3%

Diagram 3. Donations from abroad by field of activity, 2016


34.0%

Philanthropy & volun-tarism, 30.4%

Social services, 13.0%

Religion; 11.2%

Rest; 11.4%

Tax Accredited Donations (Table D)According to data received from the tax authorities, the donations from households and

corporations, reported in order to receive tax credit (by article no. 46 at the income tax act),

amounted to NIS 2.0 billion. Total donations reported increased in 2016 by 8.6% compared

to an increase of 4.2% in the previous year.

In 2016 the donations reported to the tax authorities comprised NIS 1,040 million that were

received from 98,138 donating households, and NIS 959 million received from 14,377

donating corporations. In this year the share of accredited donations is estimated at 43% of

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total donations received by non-profit institutions from corporations and households in

Israel.

The majority of the donations were donations below ten thousand NIS per year: 85% of

households' donations and 63% of corporal donations. However, the major amount of the

total sum of donations was received from larger donations, such that 58% of the sum of

donations from households were comprised of donations above fifty thousand NIS, and

were donated by 2% of private donors (households), and 53% of the total sum of donations

from corporations were comprised of donations above one million NIS, and were donated

by 1% of the corporal donors.

Table D - Donations reported to the tax authorities, by size, source and year, 2014-2016 (1)at current prices, unless noted otherwise

Year

Total number ofdonations

TotalSum

of donationsthousand

NIS

Number of donating

households

Sum of donations

from households

thousand NIS

Number of donating

corporations

Sum of donations

from corporations

thousandNIS

R2014 111,027 1,766,890 97,155 947,113 13,872 819,777

R2015 112,700 1,840,451 98,622 922,569 14,078 917,882

2016 112,515 1,999,184 98,138 1,040,487 14,377 958,697

Donation scaleThereof percentages

Thereof percentages

Thereof percentages

Thereof percentages

Thereof percentages

Thereof percentages

Total 2016 100.0 100.0 100.0 100.0 100.0 100.0below 2,000 NIS 51.6 2.3 54.7 4.0 30.4 0.42,000-10,000 NIS 30.7 8.0 30.4 13.2 32.9 2.310,000-50,000 NIS 14.1 16.3 12.7 24.4 23.2 7.650,000-100,000 NIS 1.8 7.0 1.3 8.3 5.3 5.6100,000-500,000 NIS 1.4 16.0 0.7 12.4 6.2 20.0500,000-1,000,000 NIS 0.2 8.0 0.1 5.6 1.0 10.7above 1,000,000 NIS 0.2 42.4 0.1 32.1 1.0 53.4

(1) Computed based on data from the tax authorities; Data for 2016 are not final since donations contributed in that year are still reportable.

Expenses of NPIs (Table E, Diagram 4) Total current expenses of NPIs in 2018 amounted to NIS 162.1 billion, an increase of 6.1%

over 2017, continuing an increase of 5.5% in 2017 over the previous year.

According to the survey on 2016, the total expenses of NPIs in 2016 amounted to NIS 144.9

billion. The largest scope of expenses in 2016 was recorded in the fields of health (46.1%)

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and education and research (26.1%). The remaining 27.8% were recorded in the rest nine

fields of activity, ranging from social services (7.8%) to international activity (0.1%).

The principal components of NPIs expenses in 2016 were intermediate consumption

(48.9% of expenses) and labour costs (41.8%). The remaining expenses were dedicated to

current transfers, consumption of fixed capital and financial expenses. This proportion was

quite similar in 2017-2018.

Table E - Expenses of NPIs, by type of expense and field of activity, 2013-2018NIS Million at current prices

Field of activity

Year Total Labour cost

Intermediate consumption

Consumption of fixed

capital (1)

Financial expense

Current transfers

Total R2013 124,888 51,893 61,442 3,652 1,073 6,828Total R2014 128,926 54,316 63,280 3,822 791 6,718Total R2015 136,800 57,233 66,407 3,987 746 8,428Total 2016 144,913 60,550 70,896 4,083 844 8,539Total 2017* 152,834 64,484 74,357 4,134 885 8,974Total 2018* 162,123 67,900 79,217 4,363 926 9,717Total

YearPercentages



Percentages

Total R2013 100.0 41.6 49.1 2.9 0.9 5.5Total R2014 100.0 42.1 49.1 3.0 0.6 5.2Total R2015 100.0 41.8 48.6 2.9 0.5 6.2Total 2016 100.0 41.8 48.9 2.8 0.6 5.9Total 2017* 100.0 42.2 48.6 2.7 0.6 5.9Total 2018* 100.0 41.9 48.8 2.7 0.6 6.0

Total 100.0 2016 2016 2016 2016 2016 2016Culture, recreation & sports 7.7 100.0 47.6 48.1 3.4 0.5 0.4Education & research 26.1 100.0 64.4 27.9 2.8 1.5 3.4Health 46.1 100.0 31.3 66.4 2.2 0.1 0.0Social services 7.8 100.0 43.6 37.8 5.6 0.6 12.4Environment 0.2 100.0 37.4 56.5 5.6 0.4 0.1Housing & development 1.2 100.0 33.2 63.7 2.5 0.3 0.3Advocacy & politics 0.7 100.0 46.8 45.4 6.4 0.4 1.0Philanthropy & voluntarism 4.3 100.0 12.8 17.7 1.8 0.5 67.2International activity 0.1 100.0 32.1 63.3 3.7 0.7 0.2Religion 4.0 100.0 39.0 32.4 3.9 0.8 23.9Professional associations 1.8 100.0 29.0 62.2 1.1 0.5 7.2

(1) Data on consumption of fixed capital do not derive from the annual reports. Rather, they are computed within the national accounts system. In contrast with previous published data, here the consumption of fixed capital do not include consumption of fixed capital which derives from the computation of R&D as investment; thereof the data are lower than the data published in previous years.

8


In 2016, the various fields of activity differed in the patterns of their expenses: The share of

Intermediate consumption was the highest in the field of health (66% of the expenses), and

the lowest in the field of philanthropy and voluntarism (18%). However, the share of labour

costs was the highest in education and research (64% of the expenses), culture, recreation

and sports (48%), advocacy and politics (47%) and social services (44%). In the rest of the

fields, the share of labour costs ranged from 29% to 39%, with the exception of philanthropy

and voluntarism in which the share of labour costs was especially low and amounted to 13%

of the expenses. The field of philanthropy is unique in the structure of its expenses, such

that the share of labour cost and intermediate consumption is low and the share of transfers

is especially high, comprising 67% of the expenses in the field, compared with less than

24% of the expenses in all the rest of the fields.

Diagram 4 - Current expenses of NPIs, by type and field of activity, 2016

Philanthropy & voluntarism

Professional associations

Health

International activity

Housing & development

Environment

Religion

Social services

Advocacy & politics

Culture, recreation & sports

Education & research

0% 20% 40% 60% 80% 100%Labor costs Intermidiate consumptionConsumption of fixed capital Financial expensesTransfers

Employment and Voluntarism in NPIs in 2016 (Tables F-G, Diagram 5)In 2016, the number of employee jobs in NPIs was estimated at 473,400 and the number of

volunteers at 479,710. Most of the employee jobs were recorded in the field of education

and research (48.3%), whereas most of the volunteers worked in social services (33.0%).

9


Table F - Number of employee jobs and volunteers, by field of activity, 2016Field of activity Number of

employee jobs (1)

Number of employee jobs

percentages

Number of volunteers

(2)

Number of volunteerspercentages

Total 473,400 100.0 479,710 100.0Culture, recreation & sports 56,118 11.9 12,472 2.6Education & research 229,000 48.3 114,223 23.8Health 113,215 23.8 54,904 11.4Social services 26,685 5.6 158,271 33.0Environment 1,272 0.3 9,654 2.0Housing & development 6,040 1.3 0 0.0Advocacy & politics 5,188 1.1 45,445 9.5Philanthropy & voluntarism 8,363 1.8 19,398 4.0International activity 301 0.1 37,744 7.9Religion 24,118 5.1 16,663 3.5Professional associations 3,100 0.7 10,935 2.3

(1) Computed based on data from labour force survey(2) Computed based on data from the social survey

Diagram 5 - Employment and voluntarism in NPIs, by field of activity, 2016Percentages

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10


The total compensation for labour and the value of voluntarism in NPIs was NIS 65.5 billion

in 2016. Thereof 92.4% were compensation for employee jobs, and 7.6% were imputed for

the value of volunteer work.

Table G - Compensation of employee jobs and the value of voluntarism, 2016 (1)Field of Activity Total

NIS million

Compensation of

employeejobs

NIS million

Compensation of

employeejobs

percentages

Imputed value of

volunteer work

NIS million

Imputed value of

volunteer work

percentagesTotal 65,520 60,550 100.0 4,970 100.0Culture, recreation & sports 5,422 5,315 8.8 107 2.1Education & research 25,777 24,368 40.3 1,409 28.3Health 21,657 20,903 34.6 753 15.2Social services 6,730 4,927 8.1 1,803 36.3Environment 182 120 0.2 62 1.2Housing & development 572 572 0.9 0 0.0Advocacy & politics 783 491 0.8 292 5.9Philanthropy & voluntarism 917 792 1.3 125 2.5International activity 271 29 0.0 242 4.9Religion 2,391 2,284 3.8 107 2.2Professional associations 817 747 1.2 70 1.4

(1) Computed based on data from labour force survey and social survey

Income and Expenses of NPIs Excluding Health Funds and Hospitals (Tables H-I)NPIs in Israel include health funds that provide public health services ('Kupot Holim') and

hospitals that are not owned by the government (that is, hospitals owned by the health

funds and private hospitals, which are institutionalized as an 'Amuta' or as a non-profit

corporation). Since their volume in the economic activity of NPIs is quite large (about 40%)

there is interest in presenting data excluding health funds and hospitals.

According to the deducted data, the total income of NPIs in 2016 amounted to NIS 85.5

billion only. Furthermore, the distribution of the sources of funding is different in comparison

with the inclusive data, such that, the primary source of funding is sales of services to the

private sector and to the government (40.0% of income), whereas transfers from

government comprise only 33.7% of income (compared to 34.1% and 50.3% respectively, in

the data including health funds and hospitals). The share of donations from Israel and

abroad is 24.7% of income (compared to 14.7% in the inclusive data). This proportion was

quite similar in 2017-2018.

11


Table H - Income of NPIs excluding health funds and hospitals, by source of funding, 2013-2018

Year Total Transfers from

government

Sale of services

Property income

Donations from

households corporations

and NPIsin Israel

Donations from

abroad

Year

NIS Million at current prices

Thereof percentages

Thereof Percentages

Thereof Percentages

Thereof Percentages

Thereof Percentages

2013 73,853 34.1 39.3 2.7 11.9 12.02014 76,947 34.0 39.4 2.9 12.0 11.72015 81,115 33.6 40.1 1.2 13.8 11.32016 85,524 33.7 40.0 1.5 13.2 11.52017* 89,743 33.7 40.1 1.5 13.1 11.62018* 95,222 33.3 40.3 1.5 13.2 11.7

The total expenses of NPIs (excluding health funds and hospitals) in 2016 amounted to NIS

82.2 billion only. Furthermore, the distribution of the types of expense is different, such that

in 2016 the primary expense is labor cost (51.1% of expenses), and intermediate

consumption is the secondary expense (34.1%), that is compared to 41.8% and 48.9%

respectively, in the data including health funds and hospitals. This proportion was quite

similar in 2017-2018.

Table I - Expenses of NPIs excluding health funds and hospitals, by type, 2013-2018Year Total Labour

costIntermediate consumption

Consumption of fixed capital

Financial expense

Current transfers

Year

NIS Million at current prices

Thereof percentages

Thereof Percentages

Thereof Percentages

Thereof Percentages

Thereof Percentages

2013 71,919 49.9 35.6 3.6 1.4 9.52014 73,865 51.1 35.2 3.6 1.0 9.12015 78,527 50.9 34.0 3.5 0.9 10.72016 82,182 51.1 34.1 3.4 1.0 10.42017* 86,570 51.7 33.6 3.3 1.0 10.42018* 91,763 51.6 33.5 3.3 1.0 10.6

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