As Israel continues to grapple with economic instability and rising inflation, many organizations are turning to philanthropy to keep their operations afloat. With unemployment rates soaring and businesses struggling, NGOs across the country are increasingly relying on donations to continue providing essential services to those in need.
In the last three months, the number of requests for funding from philanthropies and charities through outsourcing has increased by an astonishing 37%, according to Hana Sudry, CEO and founder of MGC (Merkaz Legius Ksafim – The Fundraising Center).
“In times of recession and economic crisis, the role of nonprofit organizations in society becomes more critical, with the general goal in mind being to provide continuous support for people in need of help. That help has become more urgent than ever before,” said Sudry.
The largest number of applications for funds are coming from organizations in the health sector, which has seen a 43% increase from last year. The welfare sector and at-risk youths have also seen significant increases in requests for charity, with 39% and 37% more applications than last year, respectively.
Merkaz Legius Ksafim (MGC)
MGC, which has been providing consulting and guidance to more than 1,000 NGOs over the past 15 years, has been instrumental in helping organizations increase their sources of income.
MGC has enabled NGOs to tap into funding from some of the world’s leading philanthropic organizations, allowing the NGOs to continue providing essential services to those in need.
Sudry explained that modern organizations have gradually understood that outsourcing fundraising services – such as those provided by MGC – leads to significantly improved results.
“The power of a diverse team consisting of different consultants, proven experience, a large database, connections with many philanthropies and donors are making the difference that one person can never achieve alone,” she said.
Rabbi Mendy Blau, Israel director of Colel Chabad, elaborated on how Israel’s economic woes have impacted charities’ dependence on external funding. According to Blau, Colel Chabad’s food security program has seen a significant increase in the number of families who face food security risks and require assistance – from 26,000 families to 34,000 in just the last two months.
“The main issue is rising inflation,” said Blau. “You’re looking at rising prices for basic foods, and even families who weren’t struggling before are now facing very low food security.”
Blau further explained that the coming year is likely to see more difficulty in regard to funding charitable organizations, assuming inflation and interest rates continue to rise as they have for the last several months.
“On one end, there will be more and more families who fall to very low food security, and on the other end, the source of donations – the foundations and [philanthropists] – will also face more challenging times,” he explained. “It will be a challenge to collect money for charity; a big challenge.”