Full Breakdown
Municipalities in Israel Turn to Philanthropy Amid Budget Challenges
3/25/2026, 9:22:33 PM
Overview of Fundraising Trends in Israel
In 2024, Israeli local authorities and their affiliated municipal foundations raised substantial philanthropic donations, totaling hundreds of millions of shekels. A report by the philanthropic platform Zoooz highlighted that Jerusalem led the fundraising efforts with NIS 136 million, followed by the Tel Aviv Foundation at NIS 57.8 million, the Gush Etzion Foundation at NIS 20 million, and others, including the Sderot Development Foundation and the Binyamin Development Foundation, which raised NIS 14 million and NIS 13.7 million, respectively. This trend indicates a significant shift in how municipalities approach funding, increasingly viewing external fundraising as a strategic tool to address budget gaps and rising demands for social services.
Reasons Behind the Shift
The change in fundraising strategy among local authorities is attributed to several factors. Shlomi Turgeman, CEO of Zoooz, noted that municipalities have historically depended on state budgets and local tax revenues. However, ongoing budget shortfalls, security pressures, and heightened needs in education, welfare, and infrastructure have prompted these authorities to seek external resources. Turgeman emphasized that the success of fundraising efforts is more closely linked to management quality and strategic planning than the size of the municipality itself.
Key Findings from the Report
The Zoooz report revealed that fundraising is becoming integral to municipal operations, reflecting a broader trend in post-October 7 philanthropy in Israel. Notably, Jerusalem raised NIS 86.5 million from international sources and NIS 49.5 million domestically, while Gush Etzion demonstrated a preference for local fundraising. Other municipalities, such as the Be’er Sheva Development Foundation and the Sdot Negev Regional Council, also participated in this trend, raising NIS 13 million and NIS 8.5 million, respectively.
Criticism & Opposition
Despite the positive outlook on fundraising efforts, some critics argue that reliance on philanthropy may undermine the responsibility of the state to provide adequate funding for local services. Concerns have been raised about the sustainability of such funding models and the potential for increased inequality among municipalities, where wealthier areas may attract more donations than those in need.
Official Statements & Responses
Zoooz's findings reflect a growing recognition among local authorities of the need to diversify funding sources. Turgeman stated, “In recent years there has been a shift in perception among local authorities,” highlighting the proactive approach municipalities are taking in addressing their financial challenges.
What's Next
As municipalities continue to adapt to these fundraising strategies, it remains to be seen how this will impact the overall landscape of public service funding in Israel. Future reports may provide insights into the long-term sustainability of these philanthropic efforts and their implications for local governance.
