In the wake of Israel's most challenging year in recent history, a quiet yet significant transformation has been unfolding in Israel's philanthropic landscape. As immediate emergency response begins transitioning to long-term recovery efforts, philanthropic leaders are noting a marked shift toward strategic giving vehicles that promise to reshape Israeli philanthropy for years to come.
This evolution is particularly evident in the growing adoption of donor-advised funds (DAFs) in Israel, a giving vehicle well-established in the United States but relatively new to the Israeli context. Unlike traditional donations or creating foundations, DAFs offer donors the ability to make tax-advantaged contributions now while strategically distributing funds over time.
Keshet, Israel's first donor-advised fund established in 2019, has become a pivotal infrastructure supporting both emergency response and long-term planning during the current crisis. The organization manages philanthropic assets that enable both rapid response to urgent needs and sustained support for long-term initiatives.
The scale of current needs has highlighted the importance of collaboration. Ad-hoc giving circles formed through DAF platforms have allowed donor groups to pool resources toward specific causes—from supporting displaced communities to addressing trauma care—without the administrative burden of establishing new organizations.
A powerful example is the memorial fund established in memory of Sivan Weil, a 20-year-old Egoz Unit soldier who fell in battle in Gaza. Rather than creating a new nonprofit, Sivan's family chose to honor his memory by establishing a fund at Keshet that sponsors rehabilitative ski expeditions for wounded soldiers—reflecting his passions for skiing and deep friendships.
Similarly, the Foundations and Associations Forum for War Orphans demonstrates how collaborative initiatives can be established quickly through existing infrastructure. Through Keshet's professional framework, the forum has provided a comprehensive response to the needs of orphans and their families, creating synergy between 13 leading organizations, maximizing the impact of every donated shekel, and building a long-term framework that will continue to operate for years to come.
The numbers speak for themselves: Over 1,000 new orphans under the age of 25 are receiving support, with 23 diverse organizations working together through unique municipal models.
A partnership vs. dependency
For American Jewish philanthropists with long-standing commitments to Israel, these developments represent a welcome shift toward partnership rather than dependency. Several major US foundations have established working relationships with Israeli DAFs to enhance their grantmaking effectiveness, creating more sophisticated collaboration between American and Israeli donors.
Looking ahead, strategic philanthropic infrastructure will prove crucial for Israel's recovery. While the emergency response phase naturally attracts funding, rebuilding communities requires sustained, strategic investment over years. Giving vehicles designed for long-term engagement will be essential for maintaining donor commitment throughout the recovery phase.
The PAI Foundation—a unique initiative bringing together foundations and private donors committed to a sustainable climate future for Israel—represents another example of this new generation of strategic philanthropy. Working through Keshet's infrastructure, PAI advances renewable energy initiatives, develops innovative solutions to the waste crisis, and promotes cross-sector economic approaches to enhance Israel's climate resilience.
The shift toward strategic philanthropy also addresses a persistent challenge in Israel's nonprofit sector: organizational sustainability. Rather than creating new organizations for each emerging need, donors are increasingly supporting existing organizations with proven track records.
The "ART NOW" initiative demonstrates this trend in an entirely different field, with a community of over 70 women united in a unique giving circle supporting the advancement of quality art in both peripheral and central Israel. The foundation provides significant grants to artists and art institutions, supports unique projects, and promotes equal opportunities in the Israeli art scene.
As Israel confronts the complex challenges of recovery and rebuilding, this evolution in philanthropic infrastructure may prove as important as the funds themselves. By creating pathways for strategic long-term giving, Israel's philanthropic sector is building resilience not just for the current crisis, but for whatever challenges the future may hold.
Maya Natan is the founder and CEO of Keshet - Donor Advised Fund.