Second Phase of Financial Assistance Grants for Third Sector Kicks Off
Last May, the Ministry of Finance published a number of steps designed to assist third-sector organizations and civil society. Several days ago, the second phase of financial assistance commenced. This phase expands some of the eligibility conditions for a grant. However, most of the requirements remain identical to those established in the first phase.
The following are the main changes to the eligibility conditions for a grant in the second phase:
The Organization’s Maximum Revenue Cycle
One of the conditions for eligibility in the first phase was an organization’s revenue turnover in 2018 ranging from NIS 500,000 to NIS 20,000,000. Now, as part of the second phase, an organization will be considered eligible if its revenue turnover in 2018 ranged from NIS 500,000 to NIS 100,000,000.
Period of Harm Determining Eligibility for a Grant
In the first phase, in order for an organization to be eligible for a grant, its monthly revenue for the months of March-June 2020 had to be lower than (at least) 25% of its average monthly revenue for 2019. Now, in the second phase, the period of harm examined (the period for which a grant may be received) has been extended to the months March-October 2020.
The Grant Amount Calculation Formula
In the first phase, the formula for calculating the grant amount was multiplying by 0.25 of the organization’s 2018 revenue. Now, in the second phase, since the period of harm has been extended, the period for which a grant may be given was also extended. Accordingly, the formula for calculating the grant amount in this phase is multiplying by 0.5 of the organization’s 2018 revenue.
For organizations that received a grant in the first phase, and are found eligible for grants in the second phase as well, the amount given in the first phase will be deducted from the amount given in the second phase.
In the first phase, the maximum assistance amount was NIS 400,000. In the second phase, the maximum assistance amount is NIS 500,000.
Application for Assistance – Procedure
Organizations that applied in the first phase and were found eligible will be asked to submit a short form. The form includes a single question: what was the organization’s revenue during the months of March-October 2020?
However, organizations that submitted an application in the first phase but were found ineligible, will be given the opportunity to submit a second application. The Support Committee will reexamine their eligibility.
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