Introduction to
The Israel Foundation Directory

The "Discovery" of Foundations

Foundations have been neglected in Israel. Those of us who are trying to map the field, research it, and create a core of skilled practitioners and managers for nonprofits have barely gotten around to studying foundations. This is probably because when one thinks about nonprofit work, 29,000 amutot (Israeli nonprofit organizations) and tens of thousands of volunteers come to mind. Little notice has been taken of over 3,000 foundations functioning in Israel today. This is surprising because in 1999 the capital held by foundations amounted to over 3.5 billion shekels (nearly one billion dollars). Foundations are a major part of the nonprofit sector and are making a major contribution to Israeli society.

For many years I have enjoyed being a consultant to some major Israeli and foreign foundations and have given advice to individual philanthropists looking for partnerships with Israeli nonprofit organizations. Most of the time I evaluate proposals received by the foundations or assess the outcome of previously made grants. I am always seeking funds for The Israel Free Loan Association, which I chair as a volunteer, and I teach nonprofit management at The Hebrew University. This work has helped me understand the needs of both parties in the nonprofit philanthropic partnership. While the nonprofits clamor for funding, I also can identify clearly with the needs and goals of the foundations that need to make every shekel count. Good funding proposals are those that try to step into the foundation's shoes and look at things from their perspective.

This book should help put foundations properly on the Israeli nonprofit map. I hope it will lead to a better understanding of their concerns and how they work. Most of all, it is my humble tribute to the donors that had the courage and values to establish them. May they multiply and flourish.

Foundations in Israel:
The Need For Transparency

This book is focused on foundations working in Israel. It is actually a companion book to the recently published "Giving Wisely: The Israel Guide to Nonprofit and Volunteer Organizations" (Gefen Publishers, 2000). While "Giving Wisely" concentrates on and strives for the transparency of Israeli nonprofit organizations (amutot), this volume seeks to describe the scope of Israeli foundations. I presume that the public has exactly the same right to information, accountability and transparency from the foundation wing of the nonprofit sector as it does from the amuta wing. After all, both amutot and foundations have registered with the Ministry of Finance or the Ministry of Justice in order to obtain special permits and status regarding the funds they hold. In the case of the amutot, the permit enables donors to deduct grants (part of it, at least) from their income tax. In the case of foundations, the permit allows the capital declared for making charitable grants to be tax deductible. The trade-off for these privileges for both the amutot and the foundations should be transparency and accountability to the public.

It is ironic that the Israeli foundations require amutot seeking funds to bare all and provide very extensive information and proof of accountability, while most of the foundations cling to secrecy about their procedures, budgets, overhead, management and decisions. Preparation of this book required us to send nearly 3,000 questionnaires to Israeli foundations. 152 filled them out and thus enabled us to prepare and publish, free of charge, a "full foundation profile" for those foundations. The rest did not bother to answer. Some of those that refused to participate took the time to write and explain why. Many wrote that they themselves were looking for funding; that the foundation was committed to designated projects and did not want or need publicity; that the foundation was closed or inactive; that funds were not available to the public at large; or that the foundation is government funded and thus in a category unto itself. Others were more explicit: "We do not want to be bothered with applications," and "We do not want to be listed publicly and are not interested in having our grants publicized." In my view, because of their tax benefits, foundations should be required to publish annual reports and their CPA reports should also be available to the public, exactly as I have recommended for the amutot sector in "Giving Wisely."

So, this book is at least a beginning effort towards promoting transparency for the entire Israeli nonprofit sector, including foundations. It is also a public service to those individuals and amutot seeking funding for their volunteer nonprofit work. I hope that it will help the two wings in the sector to find each other and work together when the needs of the funders match up with the needs of the service deliverers. Finding each other is not easy and sifting through applications is time consuming and often frustrating and costly. But the benefits to foundations include better access to information about needs, broader donor portfolios, and clearer definitions of policy, goals, and grant-making criteria.

Transparency works both ways; the foundations have every right and opportunity to choose their beneficiaries, to publicize what they do NOT do, and to limit access by defining criteria so that potential applicants can screen themselves out. Many of these criteria can be seen in the "full profiles" appearing in this book. I believe that this is a much healthier civic approach to funding and more responsible to the public and government domains.

Since the basic lists of foundations are available to the public from the Registrar of Amutot and from the Registrar of Hekdeshot, as we will clarify further on, we have published this partial data on our website as "partial foundation profiles" for all those foundations that did not reply to our questionnaire. I hope that this exposure will encourage them to go to the website and fill out the foundation questionnaire in order to upgrade their profile to a "full profile."

Myth and Reality
About Philanthropy in Israel

Most Israelis and Jews around the world have absolutely no idea of the scope of charity and philanthropic work going on in Israel and what they think they know is often incorrect. This is probably because the fundraising activities of thousands of Israeli nonprofit organizations (there are 29,000 registered "amutot") that solicit funds abroad give the impression that little funding or fundraising is available or being done in Israel. This stereotype is far from true and does great injustice to Israeli individuals, foundations, and corporations that give donations and grants to a wide range of charitable organizations and programs. A comprehensive discussion regarding the nonprofit sector in Israel, the laws governing nonprofits, and advice to donors appears in the book "Giving Wisely: The Israel Guide to Nonprofit and Volunteer Organizations" (Gefen Publishers, 2000). The book also presents detailed full profiles of hundreds of nonprofit organizations, including funding sources, financial information, and areas of activity. In addition, partial profiles of nearly 28,000 Israeli nonprofit organizations (amutot) appear on the website. The profiles attest to extensive fundraising activity and impressive success at providing truly imaginative and essential services to the Israeli public. Without the support of the public, few of these organizations could survive.

A study in 1997 by Gidron of Ben Gurion University's Israeli Center for Third Sector Research showed that 77% of all Israeli adults, more than 1.75 million, contributed to a charity of their choice. The average annual donation per household was $260.00 and benefited organizations providing welfare services (40%), health care (20%), religious needs (25%), education (14%), and other services (1%). The total amount donated directly to charity in 1997 by Israeli citizens was NIS 465 million or $143 million (Gidron, 2000).

An earlier study by the Center, in 1996, showed that in the ultra-orthodox community 89% were donors compared to 85% for the orthodox, 71% for the traditional, and 68% for the secular community. University educated persons gave primarily to welfare and health services, while those without a high school degree gave almost equally to welfare, health, and religious organizations. In the ultra-orthodox community, 61% donated 1% or more of their income to charity, compared to only 3% of donors in the secular community (Gidron, 1997). According to Gordis and Fenton (1999), the average ultra-orthodox Israeli donates $285 per year, the the average orthodox Israeli donates $144 per year, and the average secular Israeli $38 per year. Gidron's study found that although 83% of those with high income donated, 63% of those with very low income also donated. Most donors (77%) were married, but 57% of single adults also donated to charity. Regarding age, 65% of those age 22-39 donated, compared with a peak of 79% for those aged 30-40 and 71% for those aged 65 or older.

These are very important statistics, showing that the Israeli public is very much involved in funding nonprofit organizations and takes serious responsibility for this work. This is not a recent phenomenon, but has been a characteristic of the State since before its creation. It is very typical of Jewish values practiced in the Diaspora and is an integral part of Jewish behavior, religion, and culture. Although there are relatively few central campaigns and limited faith in proxy giving, Israelis have always been quick to offer aid, both financial as well as volunteer time, to aid other people in times of need (Jaffe, 1992).

Funding Sources for Israeli Nonprofits

Charitable giving is only one of three major sources of income for the nonprofit sector in Israel. The other two are public (i.e. government) funding and earned income. Of the three, the major source by far is public or tax-based government grants and contracts. In 1998, public funding accounted for 64% of the revenue of the nonprofit sector in Israel. Sources for this funding come from legislated support transfers (NIS 21.4 billion), reimbursement for services (NIS 1.2 billion), support grants (NIS 2.6 billion), and from bequests or legacy funds left to the State (NIS 72 million). Together, these State funds totaled NIS 25.74 billion! In 1997, only about 3,200 of the nonprofit organizations received government support (Gordis and Fenton, 1999). This means that the bulk of the funding went to major health (e.g Kupat Holim, etc.), education (e.g. universities), welfare, and other institutions, mostly by legislated or contractual purchase of service arrangements.

A second source of income is earned income, including fees from clients and consumers of products and services sold by the nonprofits, membership dues, and income from assets. This income totaled 26% of nonprofit sector funding in 1995 (The Israeli Center for Third Sector Research, 2000).

The third source, contributions by individuals, corporations and foundations, accounts for 10% of the sector's income. Of the 28,885 nonprofit organizations (amutot) registered with the Ministry of Interior in 1998, only 10,126 were also subsequently registered with the Ministry of Finance as a "public organization" (mosad tziburi). At another level, only 3,133 organizations had the highest accreditation from the Knesset Finance Committee under paragraph 46(a) of the income tax law and have tax deductible status for donors (Mor, 2000). This rating allows donors a 35% tax credit on donations to organizations, provided that the donation ranges from a minimum of $77 to $110,000, which is the most a citizen or company can deduct from taxes for contributions to charity.

Soliciting donations from abroad is a natural response to the tremendous needs faced by the nonprofit sector and represents an important supplement to local charitable income of the sector. The fact that Israelis do give to charity does not mean that this is "enough" to support the work of the sector because, as in every country, there will never be enough funding for existing and newly discovered needs. Particularly in Israel, the ingenuity, creativity, and commitment of the nonprofit sector leadership to alleviating social needs and improving society will always result in new services that will always require a combination of local and Diaspora funding.

Types of Israeli Foundations

General Categories by Ownership and Purpose

Israeli foundations fit most of the categories found in most countries. These include the following types:

• Community Fund
  These are foundations that serve particular geographical communities. They appeal to the public and private donors for funds that are not usually retained in an endowment where only the interest is used. All funds are used in support of local nonprofit service agencies. Examples of these are the Jerusalem, Tel Aviv, and Haifa Foundations, and the Hadera Development Fund. These foundations are registered independently of the municipalities, but coordinate closely with them and often have overlapping directorates.

• Company-sponsored Foundation
  These are private foundations whose grant funds come primarily from the contributions of a profit-making business organization. They are registered separately, independent of the business, and subject to the regulations governing private foundations.

• Family Foundation
  These are independent, private foundations funded by an individual or the members of a family. Family members usually serve as officers or board members and make most of the decisions.

• Federated Giving Program
  This is a joint fundraising effort usually administered by a nonprofit umbrella organization that distributes funds to a number of nonprofit agencies. An example of this is Matan. The organization itself is registered as a nonprofit organization.

Another way of classifying foundations is to look at their purpose rather than who owns or administers them. These include "general purpose foundations," "special purpose foundations," and "operating foundations." The operating foundation is a nonprofit private foundation that provides some relatively small grants, but whose primary purpose is to fund the foundation's own programs as determined by the governing body.

In addition, foundations can also be classified by where their funds come from. These include "independent foundations," with funds from an individual, family, or corporation that are managed by its own trustees or directors, and "public charities/public foundations," which derive their funding from the general public and are not private foundations.

In our profiles, we categorize the foundations as private-independent, government-municipal sponsored (i.e. community fund or public charity), company sponsored, or family foundations. There may be some overlapping between these categories, but the reader will have a good idea about the auspices, purposes and funding of the various foundations when this information is associated with other material in the profile.

Two additional special types of foundations found in Israel are the "hekdesh" and the "company for public benefit."

The Hekdesh
A Foundation by Another Name

In our search for a comprehensive list of foundations working in Israel, we started by identifying the foundations registered as amutot with the Registrar of Amutot at the Ministry of Interior. This gave us 1,110 nonprofit organizations, out of 28,000 amutot, that list donations and grants for charitable purposes among their goals. Other grant-making organizations are registered in Israel by the Registrar of Hekdeshot at the Ministry of Justice. These organizations are governed by the Law of Trusts, 1979.

With the excellent cooperation of Avraham Kaplan, the Registrar of Hekdeshot, we soon had the names and addresses of all 1,722 hekdeshot registered as of September, 2000. But what is a hekdesh, and why are most of them considered to be foundations?

The term "hekdesh" is mentioned in the book of Leviticus (Vayikra), where the subject of taking an oath to pledge, set aside, or dedicate a gift to God is discussed. The gift was usually the monetary value of property such as land, cattle, or other items, as assessed and evaluated by the Kohen, and donated to the Temple (the Mikdash) in Jerusalem. Hekdesh was the name of the holy fund that received these gifts. It was administered by the Kohanim, the priests, and provided funds for the daily rituals and needs of the Temple. Whatever was donated to the Temple was considered as belonging to God and thus declared to be hekdesh - sanctified and consecrated - including gifts in kind. Over the years, especially after destruction of the Second Temple by the Romans in 70 AD, Jewish communities around the world maintained the concept of hekdesh, i.e. sanctified donations, but applied it to buildings bequeathed to the community for the public welfare. These included edifices such as synagogues, hospitals, bathhouses, Talmud Torah schools, orphan homes, the mikveh, and other religious communal institutions. However, many individuals also made bequests to establish charitable funds, interest-free loan funds, and for the support of various nonprofit institutions and organizations in the areas of education, health, welfare, religion, and other public services. This is why many of the hekdeshot in Israel (and abroad) are foundations. The best translation for hekdesh in English would be a "trust," where the assets of a private donor, i.e. a bequest, grant, or property, are deposited or dedicated to a permanent fund, the fruits of which are earmarked for specific public welfare projects.

The legal status of the hekdesh requires that it must be registered with the Registrar of Hekdeshot at the Ministry of Justice. The hekdesh must have a board of trustees, public inspection of the trust deed, annual reports to the Registrar, and supervision of the trustees' actions by the Registrar on behalf of the State. During the Ottoman Turkish conquest, Moslem Shaaria law prevailed, and lands that were bequests for public use were called "Wakfa lands." Even the Sultan himself could not confiscate wakfa land. In this way, many Jewish hekdeshot were created (97 between 1881 and 1889), many of which exist to this day. The British Mandate government transferred jurisdiction of hundreds of hekdeshot created before 1917, during the Ottoman period, to the Rabbinical Courts in 1922, and in 1959 the Israeli Parliament transferred their jurisdiction to the civil District Courts of the State of Israel and established the Office of the Registrar of Hekdeshot in the Ministry of Justice.

The Company for Public Benefit

Another type of foundation, but less ubiquitous in Israel, is "the company for the benefit of the public." This legal nonprofit entity is defined according to Article 32 of the Companies Act of 1983, which recognizes a company founded for the promotion of commerce, arts, science, religion, charity, or any other social function with the aim of benefiting the public. This type of association can obtain tax exemption for donations, but it is governed as any normal commercial company. It is not a profit-making body, and directors and members cannot share dividends. Like all registered companies, the company for public benefit can be dissolved (unlike a trust) and the responsibility of board members is not personal (unlike amutot). Company structure requires accepted procedures for accounting, hiring, firing, and decision making by the board. Most of these foundations are very large institutions with a wide scope of activity that provide services to the public. Most of them rely very heavily on public and government (national or municipal) funding. Unlike hekdeshot, very few of them had their own funds when they were established. Some classic examples of companies for public benefit are the medical service providers or "sick funds" such as the General Kupat Holim (founded by the General Federation of Jewish Labor, better known as the Histadrut), the Israel Museum, the Open University, the Jerusalem Theater, ORT Foundation and many others.

The company for public benefit must be registered with the Registrar of Hekdeshot at the Ministry of Justice, which is responsible for receiving annual financial reports and overseeing accountability according to the Companies Act. In September 2000, we obtained data for all 292 companies for public benefit registered at the Ministry of Justice. All of them received our questionnaire.

The historical sketch above concerning the origins, jurisdiction, and registration of hekdeshot, companies for public benefit, and amutot leads one quickly to the conclusion that there is a need to create one single authority in Israel that will be responsible for all nonprofit organizations, whether they are foundations, hekdeshot, amutot, or companies for public benefit. In my view, the present distribution of responsibility for these entities among the Ministry of Interior (amutot), Ministry of Finance (tax deduction licensing), and the Ministry of Justice (hekdeshot and public benefit companies) is very wasteful and inefficient. Each Ministry has its own registration, reporting and review procedures, staff, criteria, premises, and office expenses. This is confusing, and does not promote accountability to the public, to donors, or to the government. There is an urgent need for new legislation to put our house in order.

How the Foundation Directory Was Prepared

The Mailing List

The methodology used to prepare this volume involved locating all organizations that provide grants, stipends, scholarships, interest-free loans, and other financial aid to individuals or nonprofit organizations. We did not include organizations that are only service-oriented, i.e., providing counseling, goods and supplies, or medical, educational, cultural, religious, or other services. We did include such organizations if a clear, usually significant, part of their agenda is providing financial aid of any kind. The organizations also had to be officially registered in Israel as a nonprofit organization by the Ministry of Interior or by the Ministry of Justice. Whether the organization is an amuta, hekdesh or company for public benefit, we labeled them as foundations, i.e. grant-making organizations.

In order to prepare the list of foundations, we purchased the database of the Registrar of Amutot at the Ministry of Interior. To our great delight, the database of the Registrar of Hekdeshot at the Ministry of Justice was provided to us without a fee, as part of the cooperative relationship that developed between our group and the Registrar, who was very enthusiastic about this project. Between these two sources, we had obtained the names and addresses of 3,124 foundations. We also received lists of foundations from the Israel Foundation Forum, an informal but important association of foundation directors, who meet periodically to share information and hear lectures on foundation work. Other lists came from major foundations that shared information with us about other foundations in the country.

Finally, in order to make sure that all of the relevant organizations had an equal opportunity to be listed in the book, we ran a large ad for several weeks in the weekend edition of four major Israeli papers, announcing the purpose of the book and asking foundations that had not yet received our questionnaire to apply for inclusion. Every possible effort was taken to guarantee that all foundations were given an equal chance to participate in this publication. We are not responsible if an organization did not return their material or sent it to us after the publication cut-off date, although late profiles will be posted on the foundations section of the "Giving Wisely" Internet site.

In all, 3,200 foundations received our questionnaire.

The Questionnaire

The questionnaire was developed after reviewing foundation directories used in other countries, such as "The Foundation Directory," published by the Foundation Center in New York; the "The Directory of Grant Making Trusts," published by the Directory of Social Change in England; the British Charity Commission web site; and the "Canadian Directory to Foundations and Grants," published by the Canadian Centre for Philanthropy. My own experience as a consultant to foundations in Israel and abroad and my familiarity with foundation management and fundraising was also helpful in preparing the 43-item, 4 page questionnaire used in this project.

The questionnaire was sent in Hebrew with an explanatory cover letter and a return envelope. The questionnaire requested identifying information and registration details, goals, classification by function and foundation type, names of key officers, application procedures and types of grants provided, limitations, evaluation and follow-up procedures, financial information, publications, affiliations, and other information.

The basic purpose of the questionnaire is two-fold: to enable the public to appreciate the scope, variety and importance of foundations working in Israel; and to help potential applicants and others to understand what each foundation does and how it works, and to screen themselves accordingly. We also want to help potential donors who may wish to support some of the foundations that are doing good work but are in need of additional funds.

Upon receipt of the completed questionnaire, a profile was carefully prepared for each organization, using uniform headings and relying only on information abstracted from the material submitted. We then translated the Hebrew profiles into English - all this at our own expense. The draft of each profile, in English and in Hebrew, was then sent to the contact person of each foundation with a request to correct any obvious mistakes and return them to us. They were informed that a non-response would be an acknowledgement that the profile was accurate and ready for printing. After the profiles were returned to the editor, each organization's corrections were reviewed and included in the final profile. At this stage, almost all of the foundations returned their profiles and written approvals for publication.

The profiles constitute a combination of subjective self-reports and objective information provided by the nonprofit organizations. We cannot attest to 100% accuracy, but self-reports are a very good beginning and this information indicates a desire to cooperate and share information. Many foundations invested a lot of time and thought in answering the questionnaires. In some cases, they sent us reports, brochures, and text way beyond the parameters required in our questionnaires. When that happened, we edited their material.

It is very important to note that there was no charge whatsoever to the foundations for preparing their profile for publication in the book and on the Internet site. For this, we thank the foundations that funded this project and the Paul Baerwald School of Social Work of The Hebrew University that sponsored part of our work.

How to Use the Foundation Directory

Advice to Nonprofit Organizations

The major users of this book will be nonprofit organizations and individuals seeking grants. It is very important for them to understand that foundations, like amutot, have their own agendas, needs, and goals. They cannot be everything to everyone. They do not have endless funds and, in most cases, are very clear about what they are seeking. Therefore, it is very important to read each foundation's profile and to call or write to them before applying for a grant or for aid. I do not recommend using the profiles here to make mass mailings containing uniform material but to do a little research to see if there is any basis at all for a match between your needs and the foundations' needs. This will save a lot of time and money for all concerned. There is much literature on fundraising, proposal writing, and foundation solicitation, and this can be very helpful for those organizations that are willing to learn the art of fundraising. Some of these sources are listed in the Recommended Reading and Web Sites section of this book. Fundraising is a skill, an art, and a profession, and there are no short cuts.

From my experience as a consultant to foundations and donors in Israel and abroad, I can only suggest that initial proposals be short and relate to six main questions:

• What is the problem for which you are requesting funding?
• Who are you and how is your organization involved in the problem?
• What are you proposing to do about the problem?
• How much will it cost and for what?
• Is your organization registered and tax deductible?
• How can you prove that you succeeded in your goals and promises for your project?

Regarding solicitation from foundations, I strongly suggest the use of electronic media to locate resources mentioned earlier, such as foundation databases and directories, Internet web sites, board members, and other important information. Finally, it should be remembered that foundations are only one source of funding from the non-government sector (9.8% of all donations) and that most funding comes from individual donors (77.3%), legacies and bequests (7.6%), and corporations (5.1%).

Advice to Foundation Directors and Boards

This book can be helpful to foundation directors in understanding the scope (and limitations) of the Israeli foundation sector. Many foundations overlap with each other and are not aware of multiple grants being made to the same nonprofit organizations. There is a need for foundations to occasionally link up with each other and coordinate their giving in order to achieve a wider impact. They can serve as catalysts for larger - often government - funding in a particular area or project. Joint planning and joint grant-making can achieve powerful results.

This panorama of the foundation field may help foundations to better appreciate their role in the larger picture and to understand that grants of all sizes can make a difference to many people, when used strategically and not randomly. This is especially true when foundations link up with grassroots self-help organizations seeking social change and the alleviation of local and national social problems. Helping people to help themselves has always been a good investment.

Foundation directors should not be afraid to expose their organization to the public. I see this exposure as a helpful act that promotes definition of purpose, accountable use of resources, responsible management, and a public service. Exposure enables nonprofit organizations and individuals to know when not to turn to a specific foundation and what to expect when they do. It is a sign of maturity when a foundation explains what it does, what it has accomplished, and what it is considering for the future. We need more of this on the Israeli scene.

The Internet Edition

The full profiles of foundations that appear in this Directory also appear on "Giving Wisely: The Internet Directory of Israeli Nonprofit and Philanthropic Organizations" web site. In addition, the partial profiles of foundations and hekdeshot located by us for this project also appear on the website. This allows and facilitates a service to foundation directors, donors, amutot boards, researchers, and anyone interested in Israeli society. While most users will require a hard-cover book edition for reference and handy use, many others will browse and make initial acquaintance with the foundation profiles through the Internet. The Internet site also allows making changes and additions to profiles without the need to publish a new book each year. Foundations that have their own website or Internet address can be contacted via links from their profile page. This enables immediate inquiries and e-mail correspondence, much wider exposure, and direct access to the organizations profiled on the "Giving Wisely" website. The website allows, invites, and encourages those organizations with partial profiles, foundations and amutot alike, to upgrade to full profiles by filling out the appropriate questionnaire online, or by requesting the questionnaire from us via e-mail. Although these are self-reports, the website is a new, strong incentive for direct accountability and reporting to the public. Hopefully, readers will actively encourage organizations and foundations to have their profile on this site, along with their address for electronic mail.

The Evolving Israeli Foundation Establishment

There have been Jewish foundations in one form or another since the birth of the Jewish people. The Talmud speaks about the selection of the "batlanim," i.e. "those who waste their time," of the Jewish community. Looking closely, we learn that the people selected had to be very prestigious local scholars who could afford to take some time off from their Jewish studies and learning to manage the community's tzedaka fund and to serve the poor. This is how the first board members were selected. In Israel, the informal communal structures were replaced by formal governing bodies during the Turkish conquest, followed by the British Mandate, and finally by the Israeli government. The Turks, for internal security purposes, required all organizations with two or more members to register as an Ottoman Association. This led to the formal registration of what are now known as "amutot," and it included many foundations. As noted previously, a large number of foundations are registered as hekdeshot.

In recent years, many foreign foundations, Jewish and non-Jewish, have opened offices here to screen applications and make grants or advise the home office about philanthropic work in Israel. Several examples of this model are the American Jewish Joint Distribution Committee, the Clore Israel Foundation, the Jewish Community Federation of San Francisco, The New Israel Fund, the Helen Bader Foundation, the Steinhardt Family Foundation, and many others. Most, but not all, of them are free-standing Israeli entities, while some are merely a conduit to transfer checks written by the home foundation to Israeli recipients.

The marked increase in the presence of foreign controlled foundations stems from the move away from centralized, proxy giving to Israel among Diaspora donors toward direct, hands-on philanthropy. It reflects a rejection of the influence of Israeli party politics on Diaspora funds sent to Israel. It also clearly reflects the decline in the monopoly of the UJA-UIA-Jewish Agency trinity as the primary recipient of the Jewish Federations' and the United Jewish Communities' annual campaign funds. Many of the new financial elite in the Diaspora grew up with the face to face contacts of Project Renewal, the frequent visits to friends and family in Israel, and on the ethos of accountability and getting results from investments - even in Israel. This younger leadership, including some in the Jewish Federations, such as those in Boston, New York, and San Francisco, were willing to open up their own philanthropic shop in Israel.

I have been preaching and explaining to Diaspora leaders for several decades that times have changed and that the Jewish federations that funded the quasi-governmental Jewish Agency during the past five decades should understand that the most appropriate partner in the new millenium is the Israeli nonprofit sector, and not the Israeli government. This means developing a new social covenant with the sector as a whole, rather than almost exclusively with the Jewish Agency. In my view, the new foundation leadership are the pioneers and vanguard in this direction. Their input is providing stability, direction, and leadership to the emerging foundation sector in Israel today.

Challenges for the Israeli Foundation Sector

All recent Israeli governments have moved rapidly to fortify the market economy in this country. As a result, the government has pulled back from funding and expanding a host of educational, social, medical, and cultural services. Some of this "savings" has been channeled into infrastructure, defense, and sectoral religious education. The development and maintenance of many vital services has now fallen upon the nonprofit sector: amutot, foundations, and on fundraising from the public. In lieu of new mandated services, national and municipal government agencies are purchasing a large amount of services from the nonprofit and private sector. The foundations need to understand their role in this development. This means not funding areas which should be funded by the government, such as the basic needs of citizens. It means helping government define what are basic social utilities and taking responsibility for them. In short, foundations should not replace government.

Major foundations should engage in strategic planning in their area of interest, not random giving. There should be a goal behind the grant and a way of assessing if the goal was reached. Whenever possible, a grant should be a catalyst for more funding for a nonprofit organization, for matching funds, or for government funds. Small grants strategically placed can have as much an impact as a large grant. Foundations have a lot to teach one another. They should formalize this relationship through an umbrella organization that will promote the expansion and professionalization of foundation work in Israel.

It is very important that Israeli foundation boards, directors, and staff see themselves as a unique collective of associations and individuals engaged in a particular field of modern management and socio-economic activity. This is part of what I call the "rediscovery of the field of philanthropy" in Israel. Historical events, donors, and a handful of academics have turned the phenomenon of philanthropy in Israel from a non-subject to a legitimate subject of academic study and professional practice.

We need to promote the study of issues that directly affect the work of foundations such as: funding sources, fundraising methods for foundations, board selection and retention, staff selection, financial and program accountability, legal status and by-laws of foundations, home office-local office relationships, grant evaluation methods, decision making, orientation to potential applicants, use of consultants, and government-foundations relations.

Foundations should also take part in the study of the nonprofit field in general, including mapping the sector, management of nonprofits, volunteering, financing, and development of the sector. They should not detach themselves from the responsibility to understand and help develop the nonprofit sector in Israel.

Foundation managers can also play an important role in interpreting Israeli society to donors abroad. Grant evaluation is an excellent way to learn about the realities and needs of Israeli society, and it is important to share this knowledge and insight with those abroad who are interested in helping Israel. We must stimulate potential donors to care about what happens in Israel and to think about the philanthropic option as a practical way of getting involved, not as charity but as a real investment in people.

Philanthropic work is one of the most rewarding experiences one can have and is central to Jewish life and religion. The trick is doing it with skill, modesty, and knowledge. You have to get your heart in gear with your brain. It is a tremendous personal responsibility that almost everyone can enjoy to some degree, at some point in his or her lifetime. Those who do it as a profession have the best job of all.

A Plea for More Israeli Foundations

Israel is in need of many more foundations to provide leadership and greater scope to the nonprofit sector. This plea is to the strata of Israelis who have accumulated wealth in recent years or over a lifetime and who are seeking a way to improve life in this country. At some point, one has to understand that making money should have a degree of social purpose. We will not live forever, and we should be remembered for some good we did while we were here. My plea for more foundations is also particularly relevant for individuals, families, and foundations abroad that have enough capital available to permit independent work in Israel, without relying on Jewish federated giving programs to express their involvement. There is no better way to have your voice heard, to follow up philanthropic investments, to create partnerships, and to get results.

Overhead costs can be very modest and once a reliable, creative, and knowledgeable field worker is hired, the Israel office can function very effectively. Many foundations work out of a private home. There are a variety of organizational models from which to choose (e.g. local amuta registration vs. foreign registration, local board or no board, and local grants vs. grants issued directly by the foreign foundation office). Staff and consultation costs are much cheaper in Israel than abroad, and grants for programs go much further here than they do abroad because of the value of foreign currency. Setting up a shop in Israel is not difficult.

The size or capital of the foundation should also not be a deterrent, and it certainly does not equate with significance of philanthropic performance. Many foundations that are giants in leadership and innovative grant-making are not among the wealthiest. But they are collaborative with recipients, listen to needs, successful in spotting indigenous leadership, unorthodox in their decision making, have the courage to innovate, and are able to abandon projects that have failed.

Foundations have a tremendous role to play in the future quality of Israeli society, and older patterns of proxy giving, as well as quasi-involvement by Jews abroad, are less relevant now. Serious donors need to look at the best way to make a difference today, and the private family or company foundation route is just as viable here in Israel as it is abroad. There is an urgent need for massive foundation growth and involvement. I strongly recommend this route for people with sufficient wealth to seek a meaningful relationship with modern Israeli society. No permission is required from anyone to start a foundation, and it is a perfect fit for those people who have struggled hard to get where they are and now want to return some of their wealth to help others reach their own maximum potential. Many people have shown leadership skills and good judgement in acquiring their wealth. I believe that they should think seriously about bringing these same skills and determination to foundation work for the Jewish people in the State of Israel.

©
2001
Copyright
Eliezer D. Jaffe