The Changing Faces of Global Jewish Philanthropy

Executive Summary
 

1. The 2008 International Jewish Funders Network conference took place in Jerusalem between March 31 and April 3, 2008. The JFN commissioned the Reut Institute to prepare a report on Global Jewish Philanthropy based on the Conference.

2. The complete report has three parts: Part I provides a snapshot of the major trends in Jewish Philanthropy; Part II summarizes the impact of the Conference on its participants; Part III focuses on the challenge of forging philanthropic partnerships. This document includes experts from Part I of the complete report and has been reproduced for the Herzliya Conference.

Snapshot of Global Jewish Philanthropy​​​

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1. Jews will suffer disproportionately from the economic crisis, since its root cause is the systemic failure in US financial markets. There will be fewer financial resources in the short and longer term while basic needs will grow. Moreover, breakdown of trust will raise 'transaction costs' of managing philanthropic foundations and nonprofits and new regulation will have to be introduced. In the long term, tectonic political shifts are likely with profound implications for the philanthropic world.

2. 'Flat World Philanthropy' – Many of the characteristics of the globalized 'flat world' – such as openness, transparency, mobility, interconnectedness, decentralization and a 'winners-take-all' mentality – have affected the world of philanthropy.

3. Moreover, we are seeing a shift from 'Charity' to 'Strategic Philanthropy' in which philanthropists go beyond financial support to hands-on involvement in the organizations that they support.

4. There is a growing focus on philanthropic impact – While most nonprofits and philanthropists claim to have 'high-impact' strategies, the entire community is grappling with the meaning of 'impact' and its assessment. The concept of high-impact philanthropy may focus either on 'efficiency and effectiveness' or on generating 'transformations'.

5. Gravitation of Israel away from the center – A heated debate is taking place regarding Israel's place in the Jewish world and Global Jewish Peoplehood. One school asserts that Israel has been and remains the only center of the Jewish world, while the other views Israel as one of a few Jewish centers.

6. At the same time, Israel is gravitating away from the center of the Jewish world due to, among other things, the decline in Israel's image, the growth of its economy and alienation among certain factions toward the makeup of its supporters.

7. Recent years have seen a rise of Israeli philanthropy and a fresh 'culture of giving' in Israel, which is motivated by social responsibility and patriotism, focuses more on strengthening the social fabric and is driven by widespread Business Social Responsibility.

8. However, Israeli philanthropy is challenged by weak tax incentives, weak institutions, and widespread public skepticism and cynicism.

9. There is clear and powerful potential synergy between Israeli and non-Israeli philanthropists collaborating on philanthropic projects in Israel: World Jewish philanthropy has a relative abundance of resources, while Israel's 'younger' philanthropists have a nuanced knowledge and understanding of Israeli society.