The Jewish Agency has a unique legal and public voluntary nature and its status is set forth in the Special "Status Law" by which the Government of Israel recognizes the Agency' authority to act in Israel in a number of fields. Among other things, the Jewish Agency is authorized to develop and settle the country, to absorb immigrants from the Diaspora and to coordinate the activities in Israel of Jewish institutions and organizations active in those fields.

The Israeli Government and the Jewish Agency signed a Covenant that details the Jewish Agency's special status vis-a vis the Government. One of most unique aspects of this Covenant was the establishment of a coordinating committee to jointly coordinate the activities of the Jewish Agency and the Government of Israel in the areas of Agency activity.

The Jewish Agency's special status in Israel and its long history of activity in cooperation with the Government of Israel accords it a special relationship with all levels of Israeli society. Through its representatives in the Jewish Agency, world Jewry shares this distinguished status in Israel and participates in the development of Israeli society.