Changing Tzedokah Coins To Banknotes

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Some months ago, Uri Maklev met with Bank of Israel Director Chezi Kalo and other top officials to complain that according to new regulations that allow banks to charge hefty rates to change coins into bank notes, tzedokah organizations that collect shekel by shekel stood to lose several percent for every transaction. Even Bank of Israel, which charges no exchange rate, will only change a maximum of 1,000 coins worth up to 5,000 shekels.

Kalo now told Maklev that although the new regulations will not budge an inch, the Bank of Israel instructed banks to pay special attention to the needs of tzedokoh organizations. The Bank of Israel will also be more flexible in capping the amount it changes.

“Whenever tzedokoh organizations and public institutions have difficulties, the supervisory body of the banks will act to find a mutually agreed solution,” Kalo said.

Tzedokah is unique in collecting money cent by cent and it is natural for tzedokoh collectors to have tens of thousands of low value coins,” Maklev said. “A donor expects and is assured that his money will reach the tzedokoh in full. Therefore tzedokoh organizations should be shown lenience and not burdened with unnecessary charges which harm the sums collected. The management of the Bank of Israel also understood this.”

David Steger – Matzav.com Israel

3 COMMENTS

  1. I don’t get this. There are real costs to converting coins. Isn’t this forcing the banks in effect to eat the cost and subsidize others tzedakah?

  2. It takes them a long time to count the coins which is paid by the bank.
    Why not ask the people to bring the coins already counted in bags of -lets say 100 shekel each?
    This will benefit both parties.

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