Most American donors who want to help Torah education in Eretz Yisrael run into the same question on their first gift: how do I get a U.S. tax deduction for money that ends up in an Israeli school? The honest answer is that it is straightforward — if you give through the right vehicle. This guide walks through how 501(c)(3) status works for charities serving Israel, how to verify a charity before you give, what receipt to keep on file, and how Chinuch Atzmai is structured so that U.S. donors get a clean U.S. deduction while the funds support 30,000 children in 127 schools across Israel.
The short version in three sentences
The IRS does not give a U.S. deduction for a gift directly to a foreign organization. It does give a U.S. deduction for a gift to a U.S. 501(c)(3) charity that operates in Israel, or that grants funds to an Israeli partner under appropriate controls. So the practical rule is: give to a U.S.-incorporated 501(c)(3) charity whose mission and operations include the schools or programs you care about. Verify the EIN; keep the receipt.
What 501(c)(3) status actually means
A 501(c)(3) is a U.S. tax-exempt public charity organized under section 501(c)(3) of the Internal Revenue Code. Two things follow from that status. First, the charity itself does not pay federal income tax on donations. Second, individual U.S. donors can deduct their gifts on Schedule A of their tax return, subject to the standard limits (generally up to 60% of adjusted gross income for cash gifts; lower for appreciated securities; consult your tax professional).
A 501(c)(3) is also free, under specific rules, to operate or grant abroad. The IRS requires that the U.S. charity exercise discretion and control over the funds — that it be the one deciding where the money goes, even if the actual classroom or bus or meal is in Israel. This is why a well-run charity for Israel will be a U.S.-incorporated nonprofit with a U.S. board, U.S. bank accounts, and a clear granting policy to its Israeli operations.
How to verify a charity before you give
Three independent checks, each of which takes under a minute:
- IRS Tax-Exempt Organization Search. Visit apps.irs.gov/app/eos and enter the charity's EIN or legal name. The IRS will tell you whether it is currently in good standing as a 501(c)(3), whether donations to it are deductible, and whether it has filed its annual returns. If the entry is missing, walk away.
- The charity's most recent Form 990. Every U.S. public charity files an annual Form 990 (or 990-EZ / 990-N) describing its program activities, its board, its expenses, and its compensation of the highest-paid staff. The 990 is public. You can view it on the IRS site or on platforms like Candid (formerly GuideStar).
- The charity's stated EIN, on its own website. A reputable charity publishes its EIN openly on its donate page, in its FAQ, and on its tax receipts. If the EIN is hard to find, that is itself a signal.
What receipt to keep on file
For any U.S. donation under $250, your bank or credit-card statement is generally sufficient documentation. For donations of $250 or more, the IRS requires a contemporaneous written acknowledgement from the charity stating the amount of the gift, the date, the charity's name and EIN, and a statement of whether any goods or services were received in exchange (for a normal cash sponsorship: none).
A well-run charity sends an emailed receipt within minutes of the donation and an annual statement in January summarizing the prior year's giving. Keep both. If you donated appreciated stock or other non-cash assets, the documentation requirements are stricter and your accountant will want a Form 8283.
How Chinuch Atzmai is structured for U.S. donors
Chinuch Atzmai's U.S. arm — Torah Schools for Israel — Chinuch Atzmai, Inc. — is the U.S.-incorporated 501(c)(3) that receives U.S. donations. It has been in continuous operation since 1953. It operates from offices in Lakewood, NJ, with international offices in Montreal and Bnei Brak. The organization grants funds to its operating arm in Eretz Yisrael, which runs 127 schools serving 30,000 children across 215+ communities, supported by 1,600 daily bus routes that bring roughly 20,000 children to school each morning.
The same EIN, the same nonprofit, has been listed on the IRS Business Master File for more than seven decades. That is a longer continuous record of compliant operation than nearly any other Israel-focused U.S. charity in existence.
Donor-Advised Fund grants and matching gifts
If you have a Donor-Advised Fund (DAF) at Fidelity Charitable, Schwab Charitable, Vanguard Charitable, the Jewish Communal Fund, or another sponsor, you can recommend a grant to Chinuch Atzmai by name and EIN through your DAF's online portal. Most DAFs will fund the grant within a few business days. Note that you cannot get a recognition benefit (e.g. a gift card, dinner ticket) in exchange for a DAF grant — only an acknowledgement.
Many U.S. employers also offer matching gifts to 501(c)(3) charities — often 1:1, sometimes 2:1. Check with your HR or benefits portal. Public-school teachers, military service members, and federal employees may have their own match programs (e.g. the Combined Federal Campaign).
What about donors outside the U.S.?
Canadian, U.K., and Israeli donors can give through partner entities to obtain local tax-receipting; the routing varies by country. The simplest path is to email the development office or use the contact page with your country, and our team will reply with the correct local-receipt routing.
A practical first step
If you have read this far, the fastest practical step is to set up a recurring sponsorship at $30, $60, or $180 per month, which is fully tax-deductible in the U.S., delivers an emailed receipt within minutes, and goes to work the next school day. You can adjust, pause, or cancel at any time from your donor account; there is no contract.