In line with the spirit of the times, the Tax Authority issued an important clarification regarding stock donations that benefit both donors and Israeli charitable organizations. The Tax Authority clarified that it is possible to donate shares to charitable organizations and completely avoid paying capital gains tax on the transfer of shares by the donor. In this way, the full value of the share is transferred entirely to the charitable organization without any taxation, so all parties benefit. In addition, as has been customary until now, the donor is also entitled to a tax refund of up to 35% of the donation value.

Behind this blessed initiative is JGive, which approached the Israel Tax Authority and sought its help in encouraging donations and easing the process for donors in and to Israel. JGive,
is a non-profit organization that has developed accessible technological infrastructure that facilitates easy transfer and management of donations to a variety of charitable organizations in Israel simultaneously, and makes it easier for the donor to issue a single receipt (approved for use by the Israel Tax Authority) for all their donations during the year.

U.S. citizens, if you are considering donating shares, we recommend that you consult with us before making the donation, in order to understand its impact on your tax situation.