In the over 15 months since the horrific attacks of October 7, it is clear that many in Israel and around the Jewish world have been transformed.
Our thinking has changed, the way we act has been altered, and our charitable giving trends have been revised. Part of this is that there has been a huge rise in giving to Israeli charities.
According to a poll taken toward the end of last year, of 73 organizations across the US with operating budgets ranging from under $1 million to more than $500 million, focusing on giving patterns from October 2023 to May 2024 demonstrated that 37% saw new donors after October 7 and 27% received larger donations from existing donors.
It is clear that more people want to donate more money.
In the aftermath of October 7, it became glaringly clear that traditional philanthropic systems, both in Israel and across the global Jewish Diaspora, were ill-prepared for the scale of the challenges we faced.
Public services and systems were either overwhelmed or unable to quickly adapt to the emerging crisis, and the urgency to respond was felt by donors worldwide. At a time when efficiency in charitable efforts has often been hindered by outdated practices and bureaucratic inefficiencies, an opportunity arose for a new vision in philanthropy. This vision seeks to transcend these limitations and shortcomings, and address the needs of a rapidly changing world
Over the past fifteen months, as support for Israel and Jewish-related causes has surged, I’ve witnessed firsthand the constraints faced by donors, even those associated with some of the largest and most established philanthropic organizations. This isn’t just a matter of overcoming obstacles, but rather a clear call to rethink how we approach charitable giving, especially in the Jewish community.
The status quo is no longer acceptable, efficient or feasible to meet post-October 7 needs.
DRAWING FROM my experience as a wealth manager for individuals who are ultra-high net-worth and as a funds manager in the capital markets, I’ve noticed a persistent theme: a desire to do good, yet a frustration with the inefficiencies that define the philanthropic sector.
Overhead costs, lack of oversight, and rigid organizational structures create barriers to making the kind of meaningful impact that donors aim for.
When I transitioned from being a professional adviser for clients to becoming a donor myself, these inefficiencies became glaringly evident. They weren’t just inconveniences; they were unacceptable norms, ones that would never be tolerated in the business world, where transparency and efficiency are paramount.
It was this realization that spurred the creation of the Merit Spread Foundation, which we launched just days before the devastating events of Simchat Torah in October 2023. Our goal was simple: to challenge and change these outdated norms and offer a better way forward for philanthropy.
Initially, we supported a wide range of causes, including health, education, and scientific research. But when the conflict broke out, we quickly pivoted to focus on urgent needs, helping victims of the war, including hostages’ families, orphans, and displaced Israeli individuals and communities.
This shift in focus wasn’t about starting just another charity. It was about creating a revolutionary force in the philanthropic sector. In the span of just one year, we helped our clients raise well over $50 million from donors, deploying it into various impactful projects across social benefit causes.
Our success stems from our commitment to a zero-overhead model, ensuring that 100% of donations go directly to their intended purposes. This commitment to transparency has established a new precedent.
Moreover, we’ve introduced a matching program through a newly established endowment to help fulfill the long-term philanthropic goals of our donors. With this structure in place, we empower them to make a meaningful and lasting impact, without being burdened by administrative hurdles.
Bold vision for philanthropy
OUR VISION is as bold as it is transformative. We aspire to be to philanthropy what Tesla is to the automotive industry, what Netflix is to entertainment, and what Amazon is to commerce.
The Merit Spread Foundation’s model resonates with a wide audience, from high-net-worth individuals to corporations looking for tax-efficient and impactful giving opportunities. By removing administrative complexities and providing robust legal, operational, and technological support, we enable our donors to focus on what truly matters: driving change.
At the same time, we recognize that the landscape of philanthropy is shifting. Younger generations, millennials and Gen Z are looking for ways to measure impact and maintain control over their charitable efforts.
These generations are leading the charge, with philanthropic figures like Mark Zuckerberg using flexible LLC structures for their charitable activities rather than traditional nonprofit models. The Merit Spread Foundation is perfectly positioned to meet this growing demand, serving as a hub for the next generation of philanthropists.
As we expand into Europe, beginning with Switzerland and the UK, our commitment remains steadfast: to build a global philanthropic organization that not only addresses the needs of donors and social benefit organizations but sets a new benchmark for what philanthropy can and should be.
Sixteen months after the tragic events of October 7, we are in the middle of a ceasefire, but that can change, and the trauma of our people continues.
Nevertheless, the time has come for us to think beyond immediate crises and adopt long-term solutions that address both current and future challenges.
This is what Israel and the global Jewish community need now more than ever. Together, we can create a more transparent, efficient, and impactful future for philanthropy, a future where doing good isn’t just an aspiration, but a reality where all can donate knowing that your money is going 100% to the cause of your choice, in an efficient, speedy and transparent manner.
The writer is founder and CEO of the Merit Spread Foundation, a seasoned international funds manager and an innovative philanthropist.