The Structural Shift in Israeli Philanthropy: The Rise of DAFs and Corporate Giving
The landscape of charitable giving in Israel is undergoing a significant structural transformation. Historically characterized by a reliance on state-led social welfare, the nation is witnessing a move toward more sophisticated, private-sector-driven philanthropy. This shift is most evident in the rapid expansion of donor-advised funds (DAFs) and the evolving role of public companies in the national giving ecosystem.
The Expansion of Donor-Advised Funds (DAFs)
One of the most prominent indicators of this changing tide is the growth of alternative charitable giving vehicles. Donor-advised funds, which only became available in Israel in 2020, have emerged as a key tool for both domestic and international funders seeking to manage their philanthropic impact with greater precision.
Keshet’s 2025 Growth Milestones
Keshet, a pioneer of the DAF model in Israel, has reported a major expansion in its assets. According to the organization’s 2025 year in review report, Keshet saw NIS 420 million ($132.7 million) deposited into the fund last year. This brings the total amount deposited into Keshet since its launch to NIS 1.3 billion ($410.7 million).
Maya Natan, CEO of Keshet and former director of the Israel office of the Jewish Funders Network, noted that the past year saw a significant increase in stock-based donations. To meet the growing needs of its clients, Keshet expanded its service offerings in 2025. These new capabilities allow Israeli funders to pool resources to create endowments and provide foreign donors with streamlined methods to direct funds to Israeli nonprofits.
Corporate Philanthropy: The TASE Landscape
While individual and DAF-based giving is rising, the participation of Israel’s public sector remains a critical, albeit underutilized, component of the philanthropic market. Data regarding the Tel Aviv Stock Exchange (TASE) reveals both the scale and the untapped potential of corporate social responsibility in the region.
According to ZOOOZ CEO Shlomi Turgeman, philanthropic donations made by Israel’s public companies totaled approximately NIS 800 million in 2025. While this represents a substantial sum, it accounts for only 10% of all charitable donations in the country. The breadth of corporate participation remains limited; a recent study found that only 45% of TASE companies made donations during the 2025 period.
Key Takeaways
- DAF Proliferation: Donor-advised funds are becoming a primary vehicle for sophisticated giving in Israel, with Keshet reporting NIS 420 million in new deposits for 2025.
- Asset Diversification: There is a notable rise in stock-based donations, indicating a shift toward more complex financial instruments in philanthropy.
- Corporate Gap: Despite significant totals, public companies represent only 10% of total charitable donations, with less than half of TASE-listed companies participating in giving.
- Global Integration: New financial structures are enabling easier fund transfers from foreign donors to Israeli nonprofit organizations.
Frequently Asked Questions
What is a Donor-Advised Fund (DAF)?
A DAF is a philanthropic vehicle that allows donors to make a charitable contribution, receive an immediate tax benefit, and then recommend grants from the fund over time. In Israel, these became available in 2020.
How much did public companies donate in 2025?
Philanthropic donations from Israel’s public companies totaled approximately NIS 800 million in 2025, according to ZOOOZ CEO Shlomi Turgeman.
Why is the rise of DAFs significant for Israel?
The growth of DAFs signals a shift from a state-centric social model to a more sophisticated private philanthropic model, allowing for better resource pooling and increased involvement from international donors.