Yadid LaChinuch: Contrubution to the Israeli Economy

 

 

Executive Summary

Compiled by BDO

With the support of the Department of Social Responsibility at Migdal Insurance

Established in 2007, Yadid LaChinuch is an Israeli non-profit association which integrates senior citizen volunteers into the Israeli education system. Some 3,000 senior citizens spend a total of 400,000 hours annually volunteering in 560 primary and middle schools across Israel. The program’s model has been approved by the Ministry of Education and is conducted in collaboration with the education department at each municipality.

The association strives to achieve two primary goals: to support the Israeli education system, and to improve and contribute to the lives of senior citizens. Volunteers visit schools one morning a week on average, and assist students in subjects such as reading, math, English and general mentorship. The association aspires to place between five to twenty volunteers in each school. At the time of writing, each school hosts six Yadid LaChinuch volunteers on average. The association also provides its volunteers with approximately 40,000 hours of professional training and seminars throughout the year, as well as conferences and social events.

Israel suffers from a shortage of school teachers and overcrowded classrooms, factors which affect student achievements and, as a result, the economy. Senior citizens are a valuable human resource, having a rich experience and (often) a background in higher education. They can therefore contribute to the education system by being integrated into the school and supporting students in individual sessions or in small groups.

As life expectancy and population growth increases, so does the need to imbue senior citizens’ lives with significance and meaning in their post-retirement years, with the goal of generating a better aging experience and improving their quality of life. One means of achieving this is through volunteering in a cognitive social capacity in which senior citizens are able to contribute by sharing their skills and professional experience, thereby instilling them with a sense of value, similar to that they had had throughout their career.^[1]

By volunteering at Yadid LaChinuch, senior citizens are better able to cope with the copious amount of leisure time on their hands once they retire. It answers the social and cognitive needs of retirees, decreases loneliness, positively affects their health and reduces the risk of illnesses that are common among men and women over the age of 65, such as dementia.

 

Measuring contribution to the economy

The economic contributions of Yadid LaChinuch’s activities are measured on three levels:

• Contributions in the field of health were assessed by estimating reduced health-related expenses resulting from the impact of volunteering on the seniors’ physical and cognitive wellbeing. For the purpose of this assessment, the effects of volunteering in reduced risk of dementia and decreased cost of aid and missed work days of relative caretakers was assessed in some 3,000 subjects. Dementia is common among senior citizens and has significant manifestations; the effects of volunteering on the development of dementia were therefore examined, yet volunteering has many other contributions to senior citizens’ health that exceed this assessment, leaving this data lacking.
• Contributions in the field of education were assessed by estimating the contribution of some 400,000 hours of mentorship and assistance within the education system provided by senior volunteers at elementary schools across Israel.
• Contributions in the field of leisure were assessed by estimating the contribution of some 400,000 hours of volunteer service and some 40,000 hours of professional training and seminars offered to the volunteers, which provide an alternative to social-cognitive activities such as senior citizen clubs.

 

Yadid LaChinuch activity contribution methodology

Contributions in the field of health	30,000 senior citizen volunteers and their families
Contributions in the field of education	400,000 hours of mentorship in 560 schools
Contributions in the field of leisure	400,000 hours of volunteer service and 40,000 hours of professional training

 

 

 

 

In order to calculate the contribution, the costs of operating the Yadid LaChinuch program – comprised of cost of volunteers, indirect costs to the Ministry of Education which absorbs the volunteers, and costs pertaining to budgeting by the Ministry of Education, municipalities and philanthropic entities – were deducted. According to the 2018 Yadid LaChinuch fiscal report, the association’s budget and cost of volunteer operations came up to approximately 3M ILS annually.^[2] Additional budgeting by the Ministry of Education, municipalities and philanthropists came up to approximately 1M ILS. Furthermore, based on Yadid LaChinuch data, the invested cost by the Ministry of Education put into volunteers in the schools was assessed at approximately 2M ILS per year. The total cost of operation for Yadid LaChinuch activities is therefore valued at approximately 6M ILS per year.

 

Total potential of marginal contribution to the economy in terms of ROI

According to the presented contribution assessment, the contribution of Yadid LaChinuch’s activities to the Israeli economy comes up to approximately 64M ILS per year.

 

Assessment of Yadid LaChinuch’s annual contribution to the economy

30,000 senior citizen volunteers and their families	48M ILS in health
400,000 hours of mentorship in 560 schools	11.4M ILS in education
400,000 hours of volunteer service and 40,000 hours of professional training	4.4M ILS in leisure

 

 

 

 

 

Deducting the 6M ILS cost of operating Yadid LaChinuch, the total contribution of the association and its volunteers’ to the Israeli economy is assessed at 58M ILS; the individual contribution of each senior citizen volunteer is approximately 20,000 ILS per year.

Based on this assessment, Yadid LaChinuch’s P/E ratio is 9.6 – for every 1 ILS invested in Yadid LaChinuch, the Israeli economy gains 9.6 ILS: 7.2 ILS for the health sector, 1.7 ILS for education, and 0.7 for leisure.

 

Yadid LaChinuch operating costs and annual contribution to the economy

Contribution	Cost of operating
Health: 48M ILS	Yadid LaChinuch: 3M ILS
Education: 11.4M ILS	The education system, municipalities and philanthropists: 3M ILS
Leisure: 4.4M ILS

 

 

 

 

 

 

 

 

 

 

Yadid Lachinuch P/E ratio

1 ILS invested in Yadid LaChinuch à 9.6 ILS contribution to the economy

    7.2 ILS in health

   1.7 ILS in education

   0.7 ILS in leisure

 

 

 

 

 

 

Executive Summary

Compiled by BDO

With the support of the Department of Social Responsibility at Migdal Insurance

Established in 2007, Yadid LaChinuch is an Israeli non-profit association which integrates senior citizen volunteers into the Israeli education system. Some 3,000 senior citizens spend a total of 400,000 hours annually volunteering in 560 primary and middle schools across Israel. The program’s model has been approved by the Ministry of Education and is conducted in collaboration with the education department at each municipality.

The association strives to achieve two primary goals: to support the Israeli education system, and to improve and contribute to the lives of senior citizens. Volunteers visit schools one morning a week on average, and assist students in subjects such as reading, math, English and general mentorship. The association aspires to place between five to twenty volunteers in each school. At the time of writing, each school hosts six Yadid LaChinuch volunteers on average. The association also provides its volunteers with approximately 40,000 hours of professional training and seminars throughout the year, as well as conferences and social events.

Israel suffers from a shortage of school teachers and overcrowded classrooms, factors which affect student achievements and, as a result, the economy. Senior citizens are a valuable human resource, having a rich experience and (often) a background in higher education. They can therefore contribute to the education system by being integrated into the school and supporting students in individual sessions or in small groups.

As life expectancy and population growth increases, so does the need to imbue senior citizens’ lives with significance and meaning in their post-retirement years, with the goal of generating a better aging experience and improving their quality of life. One means of achieving this is through volunteering in a cognitive social capacity in which senior citizens are able to contribute by sharing their skills and professional experience, thereby instilling them with a sense of value, similar to that they had had throughout their career.^[1]

By volunteering at Yadid LaChinuch, senior citizens are better able to cope with the copious amount of leisure time on their hands once they retire. It answers the social and cognitive needs of retirees, decreases loneliness, positively affects their health and reduces the risk of illnesses that are common among men and women over the age of 65, such as dementia.

 

Measuring contribution to the economy

The economic contributions of Yadid LaChinuch’s activities are measured on three levels:

• Contributions in the field of health were assessed by estimating reduced health-related expenses resulting from the impact of volunteering on the seniors’ physical and cognitive wellbeing. For the purpose of this assessment, the effects of volunteering in reduced risk of dementia and decreased cost of aid and missed work days of relative caretakers was assessed in some 3,000 subjects. Dementia is common among senior citizens and has significant manifestations; the effects of volunteering on the development of dementia were therefore examined, yet volunteering has many other contributions to senior citizens’ health that exceed this assessment, leaving this data lacking.

• Contributions in the field of education were assessed by estimating the contribution of some 400,000 hours of mentorship and assistance within the education system provided by senior volunteers at elementary schools across Israel.

• Contributions in the field of leisure were assessed by estimating the contribution of some 400,000 hours of volunteer service and some 40,000 hours of professional training and seminars offered to the volunteers, which provide an alternative to social-cognitive activities such as senior citizen clubs.

 

Yadid LaChinuch activity contribution methodology

30,000 senior citizen volunteers and their families	Contributions in the field of health
400,000 hours of mentorship in 560 schools	Contributions in the field of education
400,000 hours of volunteer service and 40,000 hours of professional training	Contributions in the field of leisure

 

In order to calculate the contribution, the costs of operating the Yadid LaChinuch program – comprised of cost of volunteers, indirect costs to the Ministry of Education which absorbs the volunteers, and costs pertaining to budgeting by the Ministry of Education, municipalities and philanthropic entities – were deducted. According to the 2018 Yadid LaChinuch fiscal report, the association’s budget and cost of volunteer operations came up to approximately 3M ILS annually.^[2] Additional budgeting by the Ministry of Education, municipalities and philanthropists came up to approximately 1M ILS. Furthermore, based on Yadid LaChinuch data, the invested cost by the Ministry of Education put into volunteers in the schools was assessed at approximately 2M ILS per year. The total cost of operation for Yadid LaChinuch activities is therefore valued at approximately 6M ILS per year.

 

Total potential of marginal contribution to the economy in terms of ROI

According to the presented contribution assessment, the contribution of Yadid LaChinuch’s activities to the Israeli economy comes up to approximately 64M ILS per year.

 

Assessment of Yadid LaChinuch’s annual contribution to the economy

30,000 senior citizen volunteers and their families	48M ILS in health
400,000 hours of mentorship in 560 schools	11.4M ILS in education
400,000 hours of volunteer service and 40,000 hours of professional training	4.4M ILS in leisure

 

Deducting the 6M ILS cost of operating Yadid LaChinuch, the total contribution of the association and its volunteers’ to the Israeli economy is assessed at 58M ILS; the individual contribution of each senior citizen volunteer is approximately 20,000 ILS per year.

Based on this assessment, Yadid LaChinuch’s P/E ratio is 9.6 – for every 1 ILS invested in Yadid LaChinuch, the Israeli economy gains 9.6 ILS: 7.2 ILS for the health sector, 1.7 ILS for education, and 0.7 for leisure.

 

Yadid LaChinuch operating costs and annual contribution to the economy

Contribution	Cost of operating
Health 48M ILS	Yadid LaChinuch 3M ILS
Education 11.4M ILS	The education system, municipalities and philanthropists 3M ILS
Leisure 4.4M ILS

 

Yadid Lachinuch P/E ratio

1 ILS invested in Yadid LaChinuch à 9.6 ILS contribution to the economy

                                                                                    7.2 ILS in health

                                                                                    1.7 ILS in education

                                                                                    0.7 ILS in leisure

 

 

 

 

Executive Summary

Compiled by BDO

With the support of the Department of Social Responsibility at Migdal Insurance

Established in 2007, Yadid LaChinuch is an Israeli non-profit association which integrates senior citizen volunteers into the Israeli education system. Some 3,000 senior citizens spend a total of 400,000 hours annually volunteering in 560 primary and middle schools across Israel. The program’s model has been approved by the Ministry of Education and is conducted in collaboration with the education department at each municipality.

The association strives to achieve two primary goals: to support the Israeli education system, and to improve and contribute to the lives of senior citizens. Volunteers visit schools one morning a week on average, and assist students in subjects such as reading, math, English and general mentorship. The association aspires to place between five to twenty volunteers in each school. At the time of writing, each school hosts six Yadid LaChinuch volunteers on average. The association also provides its volunteers with approximately 40,000 hours of professional training and seminars throughout the year, as well as conferences and social events.

Israel suffers from a shortage of school teachers and overcrowded classrooms, factors which affect student achievements and, as a result, the economy. Senior citizens are a valuable human resource, having a rich experience and (often) a background in higher education. They can therefore contribute to the education system by being integrated into the school and supporting students in individual sessions or in small groups.

As life expectancy and population growth increases, so does the need to imbue senior citizens’ lives with significance and meaning in their post-retirement years, with the goal of generating a better aging experience and improving their quality of life. One means of achieving this is through volunteering in a cognitive social capacity in which senior citizens are able to contribute by sharing their skills and professional experience, thereby instilling them with a sense of value, similar to that they had had throughout their career.^[1]

By volunteering at Yadid LaChinuch, senior citizens are better able to cope with the copious amount of leisure time on their hands once they retire. It answers the social and cognitive needs of retirees, decreases loneliness, positively affects their health and reduces the risk of illnesses that are common among men and women over the age of 65, such as dementia.

 

Measuring contribution to the economy

The economic contributions of Yadid LaChinuch’s activities are measured on three levels:

• Contributions in the field of health were assessed by estimating reduced health-related expenses resulting from the impact of volunteering on the seniors’ physical and cognitive wellbeing. For the purpose of this assessment, the effects of volunteering in reduced risk of dementia and decreased cost of aid and missed work days of relative caretakers was assessed in some 3,000 subjects. Dementia is common among senior citizens and has significant manifestations; the effects of volunteering on the development of dementia were therefore examined, yet volunteering has many other contributions to senior citizens’ health that exceed this assessment, leaving this data lacking.
• Contributions in the field of education were assessed by estimating the contribution of some 400,000 hours of mentorship and assistance within the education system provided by senior volunteers at elementary schools across Israel.
• Contributions in the field of leisure were assessed by estimating the contribution of some 400,000 hours of volunteer service and some 40,000 hours of professional training and seminars offered to the volunteers, which provide an alternative to social-cognitive activities such as senior citizen clubs.

 

Yadid LaChinuch activity contribution methodology

Contributions in the field of health	30,000 senior citizen volunteers and their families
Contributions in the field of education	400,000 hours of mentorship in 560 schools
Contributions in the field of leisure	400,000 hours of volunteer service and 40,000 hours of professional training

 

 

 

 

In order to calculate the contribution, the costs of operating the Yadid LaChinuch program – comprised of cost of volunteers, indirect costs to the Ministry of Education which absorbs the volunteers, and costs pertaining to budgeting by the Ministry of Education, municipalities and philanthropic entities – were deducted. According to the 2018 Yadid LaChinuch fiscal report, the association’s budget and cost of volunteer operations came up to approximately 3M ILS annually.^[2] Additional budgeting by the Ministry of Education, municipalities and philanthropists came up to approximately 1M ILS. Furthermore, based on Yadid LaChinuch data, the invested cost by the Ministry of Education put into volunteers in the schools was assessed at approximately 2M ILS per year. The total cost of operation for Yadid LaChinuch activities is therefore valued at approximately 6M ILS per year.

 

Total potential of marginal contribution to the economy in terms of ROI

According to the presented contribution assessment, the contribution of Yadid LaChinuch’s activities to the Israeli economy comes up to approximately 64M ILS per year.

 

Assessment of Yadid LaChinuch’s annual contribution to the economy

30,000 senior citizen volunteers and their families	48M ILS in health
400,000 hours of mentorship in 560 schools	11.4M ILS in education
400,000 hours of volunteer service and 40,000 hours of professional training	4.4M ILS in leisure

 

 

 

 

 

Deducting the 6M ILS cost of operating Yadid LaChinuch, the total contribution of the association and its volunteers’ to the Israeli economy is assessed at 58M ILS; the individual contribution of each senior citizen volunteer is approximately 20,000 ILS per year.

Based on this assessment, Yadid LaChinuch’s P/E ratio is 9.6 – for every 1 ILS invested in Yadid LaChinuch, the Israeli economy gains 9.6 ILS: 7.2 ILS for the health sector, 1.7 ILS for education, and 0.7 for leisure.

 

Yadid LaChinuch operating costs and annual contribution to the economy

Contribution	Cost of operating
Health: 48M ILS	Yadid LaChinuch: 3M ILS
Education: 11.4M ILS	The education system, municipalities and philanthropists: 3M ILS
Leisure: 4.4M ILS

 

 

 

 

 

 

 

 

 

 

Yadid Lachinuch P/E ratio

1 ILS invested in Yadid LaChinuch à 9.6 ILS contribution to the economy

    7.2 ILS in health

   1.7 ILS in education

   0.7 ILS in leisure