According to an analysis by the Israel Hofshit movement, which examined all 811 institutions, most donations to these yeshivas come from domestic Israeli sources, not from abroad. Abolishing the tax benefit under Section 46 would net the state treasury approximately 430 million shekels annually.
A new analysis by the Israel Hofshit movement (a civil-society organization advocating for secular and religious freedom) finds that the majority of contributions to Israeli yeshivas — covering all 811 institutions reviewed — originate domestically, not from overseas donors. The study argues that this undermines a longstanding justification for retaining Section 46 of the tax code, which grants a special deduction for donations to yeshivas. Eliminating the benefit, the analysis estimates, would save the state roughly 430 million shekels per year. The finding shifts the fiscal debate from one about encouraging foreign philanthropy to one about redirecting a domestic subsidy.
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