Exerpts from "Third Sector at a Glance 2007"
The Economic Scale of the Third Sector in Israel
The share of the Third Sector in Israel’s economy has been increasing continuously since the 1990s. The annual current expenditure of the Third sector in 2002 amounted to 65 billion NIS (Approx. $14 billions), a sum which is equivalent to 13.3% of Israel’s GDP.
The extent of employment in the Third Sector in 2002 amounted to 236,000 full time equivalent jobs, or 10.9% of the total employment in Israel - a 30% increase in the sector’s share since 1991.
The Sector is funded by three main sources: Public funding through government payments and grants, contributions from individuals and organizations, and earned income through sales of products and services. Public funding, mostly through government purchasing services provided by Third Sector organizations, is still the dominant source, but its share decreased from 63% of total sector revenue in 1995 to 52% in 2002 (Figure 2). Concurrently, the share of earned income in the sector income increased from 27% in 1995 to 34% in 2002.
Giving and Volunteering 1997-2002
Many more Israelis engaged in voluntary work in 2006 when compared to 1997. The rates of volunteering increased 40% in the last decade, from a rate of 32% to 45% (Figure 3). This increase was manifested in formal volunteering in organizations and in informal volunteering with individuals and households. In contrast, a comparison of 1997 and 2006 giving shows that the general rate of giving remained virtually constant. However, this hides an increase in the rate of giving through organizations, and a decrease in direct donations to individuals and households. This is the case among the Jewish population. The Arab patterns of giving and volunteering differ substantially from those of the Jewish population and normally take a more informal route, thus calling for the use of different definitions and methodology. The Rate of volunteering in organizations among Arab Israelis in 2005 was 23% and informal volunteering with persons other than family members reached 62%.
For the full report visit the Israeli Center for Third Sector Research