Giving At A Key Juncture

Tel Aviv/ITA

ewish philan-
thropy in Israel
is at a crossroads.
Powerful trends are mar-
ginalizing its impact on
Israeli society. More than
a billion dollars of philan-
thropic giving from Jews
worldwide, spurred by
endless goodwill, passion
and care, are not impact-
ing Israel or contributing
to global Jewish people-
hood to the extent they
should. The current system
is in dire need of an over-
haul.
I write this piece as an
Israeli whose national
identity is founded upon
and deeply informed by
his Jewishness. I am also
a person who has realized
a dream and established
the Reut Institute, a policy group that
provides strategic decision-support to the
government of Israel because of the gen-
erosity of time, spirit and money by rab-
bis, lay leaders and philanthropists from
the United States,
France and England.
Why do I care? As
an Israeli and for a
variety of obvious
reasons, I wish to
ensure that these
dollars are put to the
best possible use. As
a Jew, I view philan-
thropy as a critical
tool in connecting
the Jewish diaspora
with Israel and a
key ingredient in the
blood that flows in
the veins of global Jewish peoplehood. As
a grantee, I feel a debt of gratitude and a
sense of responsibility to share my ideas
openly with my partners.

j

On The Margins
Four major trends are marginalizing
Jewish philanthropy in Israel.
• Chronic inefficiencies, budget cuts
and privatization have led to a decline in
the Israeli government's will and ability
to address the needs of Israel's popula-

Raising enough money to keep up with
tion. Therefore, the menu of options for
the growing needs is not feasible. Being
philanthropic giving has expanded while
more efficient is very important but only
its resources have been stretched beyond
amounts to an insufficient "technical fix!'
capacity.
The real challenge is to leverage much
• The rapid growth of the Israeli econo-
greater impact on Israeli society with the
my — by an estimated $7 billion in 2007
alone — is diminishing the overall impact same dollars.
of Jewish philanthropy.
At Issue
• The socioeconomic center of Israeli
There are three parts to the needed
society is increasingly disconnected
qualitative approach: vision, organization,
from Jewish philanthropy in Israel.
and focus and priorities. Each element
Philanthropists are engaged with the
requires a fundamental change of deeply
poor and the needy or with a very
embedded values and patterns of conduct.
small, intensely intellectual and political
• First, on vision:
English-speaking elite.
Jewish philanthropists
• Finally, there
The curre nt system need to embrace a
is the belated and
positive vision that can
much-awaited rise of
of phila nthropy
provide an overarching
Israeli philanthropists,
is in dir e need
framework for their
who are stepping in
actions. The TOP 15
to address societal
of
an
ov
erhaul.
Vision,
which aims
challenges and local
to
place
Israel among
needs.
the
15
most
developed
nations
in terms
As much as they are challenges, these
of
quality
of
life
within
15
years,
is one
trends also present opportunities. The
example
of
such
a
context.
This
is
the
menu of options for philanthropic inter-
vision that guides the work of the Reut
ventions expands. Furthermore, Jewish
Institute. It requires catapulting the qual-
philanthropy is in an excellent position
ity of life in Israel toward the kind of sus-
to impact and lead the four rising sec-
tained, out-of-the-ordinary growth seen in
tors of Israeli society: the business class,
Ireland, Finland or China.
philanthropists, local government and
• Second, on organization: The heavy
nonprofits.
hitters of Jewish philanthropy in Israel
The approach has to be qualitative.

— the organized Jewish
community, founda-
tions, individuals and
their professional staffs
— should come together.
Their agenda may include,
for example, lobbying
the Israeli government
for tax reforms, policy,
partnerships or recogni-
tion of their joint efforts;
engaging the Israeli
middle class that is not a
recipient of their generos-
ity; standardizing expec-
tations from grantees to
make philanthropy more
efficient and accessible;
or sharing information
and discussing priorities,
activities and specific
organizations.
• Third, on focus and
priorities: The next wave
of Jewish philanthropy in
Israel must develop a new
ethos and focus on institution and capac-
ity building, as well as on government and
market failures.
Institution and capacity building will
ensure lasting impact on Israeli society.
Philanthropists need to insist that their
grantees uphold the requirements for
good business: clear vision, mission,
strategy, core values and unique value
proposition; solid and quantifiable per-
formance goals; strong boards; account-
ability and stable and transparent finan-
cial oversight.
In addition, they need to create incen-
tives for small nonprofits to grow, merge,
synergize or shut down and help them
transition from their founders to solid
professional management.
My conclusion is that the marginaliza-
tion of Jewish philanthropy in Israel is not
inevitable. If transformed, it can continue
to play a central role in Israeli society and
become an engine of Israeli prosperity
and excellence.
The overhaul is important for the grant-
ees and grantors, for Israel and for world
Jewry. LL

Gidi Grinstein is founder and president of the

Reut Institute (www.reut-institute.org ). This

abridged article summarizes a series about

Jewish philanthropy that Grinstein is writing

for his bloq at www.blogidi.com .

May 22 • 2008

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